The Zimbabwe Democracy and Economic Recovery Act (S. 494) is an act passed by the United States Congress

United States Congress

The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

 sanctioned

Economic sanctions

Economic sanctions are domestic penalties applied by one country on another for a variety of reasons. Economic sanctions include, but are not limited to, tariffs, trade barriers, import duties, and import or export quotas...

 to provide for a transition to democracy and to promote economic recovery in Zimbabwe

Zimbabwe

Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...

.

Senators Bill Frist

Bill Frist

William Harrison "Bill" Frist, Sr. is an American physician, businessman, and politician. He began his career as an heir and major stockholder to the for-profit hospital chain of Hospital Corporation of America. Frist later served two terms as a Republican United States Senator representing...

 (R-Tennessee

Tennessee

Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...

) and Russ Feingold

Russ Feingold

Russell Dana "Russ" Feingold is an American politician from the U.S. state of Wisconsin. He served as a Democratic party member of the U.S. Senate from 1993 to 2011. From 1983 to 1993, Feingold was a Wisconsin State Senator representing the 27th District.He is a recipient of the John F...

 (D-Wisconsin

Wisconsin

Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...

) introduced the bill on March 8, 2001. Senators Frist, Jesse Helms

Jesse Helms

Jesse Alexander Helms, Jr. was a five-term Republican United States Senator from North Carolina who served as chairman of the Senate Foreign Relations Committee from 1995 to 2001...

 (R-North Carolina

North Carolina

North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...

), Hillary Rodham Clinton

Hillary Rodham Clinton

Hillary Diane Rodham Clinton is the 67th United States Secretary of State, serving in the administration of President Barack Obama. She was a United States Senator for New York from 2001 to 2009. As the wife of the 42nd President of the United States, Bill Clinton, she was the First Lady of the...

 (D-New York

New York

New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

), and Joseph Biden (D-Delaware

Delaware

Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...

) sponsored the bill. The Senate

United States Senate

The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...

 passed the bill on August 1 and the House

United States House of Representatives

The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...

 passed the bill on December 4. President

President of the United States

The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....

 George W. Bush

George W. Bush

George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....

 signed it into law on December 21.

Simbi Veke Mubako, Zimbabwe's ambassador, and Cynthia McKinney

Cynthia McKinney

Cynthia Ann McKinney is a former US Congresswoman and a member of the Green Party since 2007. As a member of the Democratic Party, she served six terms as a member of the United States House of Representatives. In 2008, the Green Party nominated McKinney for President of the United States...

accused supporters of the bill of anti-black racism.

Statement of Policy

"It is the policy of the United States to support the people of Zimbabwe in their struggle to effect peaceful, democratic change, achieve broad-based and equitable economic growth, and restore the rule of law."

Sanctions

The sanctions nature of the Zimbabwe Democracy and Economic Recovery Act of 2001 are mentioned below:

It is the sense of Congress that the President should begin immediate consultation with the governments of European Union member states, Canada, and other appropriate foreign countries on ways in which to--

(1) identify and share information regarding individuals responsible for the deliberate breakdown of the rule of law, politically motivated violence, and intimidation in Zimbabwe;

(2) identify assets of those individuals held outside Zimbabwe;

(3) implement travel and economic sanctions against those individuals and their associates and families; and

(4) provide for the eventual removal or amendment of those sanctions
MULTILATERAL FINANCING RESTRICTION- Until the President makes the certification described in subsection (d), and except as may be required to meet basic human needs or for good governance, the Secretary of the Treasury shall instruct the United States executive director to each international financial institution to oppose and vote against-- any extension by the respective institution of any loan, credit, or guarantee to the Government of Zimbabwe; or any cancellation or reduction of indebtedness owed by the Government of Zimbabwe to the United States or any international financial institution.

The institutions directly affected by this policy are listed in Sec 3, titled Definitions:

SEC. 3. DEFINITIONS.

In this Act: INTERNATIONAL FINANCIAL INSTITUTIONS- The term `international financial institutions' means the multilateral development banks and the International Monetary Fund. MULTILATERAL DEVELOPMENT BANKS- The term `multilateral development banks' means the

International Bank for Reconstruction and Development, the International Development Association, the

International Finance Corporation, the

Inter-American Development Bank, the

Asian Development Bank, the

Inter-American Investment Corporation, the

African Development Bank, the

African Development Fund, the

European Bank for Reconstruction and Development, and the

Multilateral Investment Guaranty Agency

Especially the last institution, the Multilateral Investment Guarantee Agency is important in underwriting loans between governments.