DEVELOPMENT ASSISTANCE POLICY.

SEC. 203. DEVELOPMENT ASSISTANCE POLICY. (a) General Policy.—Section 101(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151(a)) is amended in the fifth sentence— (1) by striking “four” and inserting “five”; (2) by striking “and” at the end of paragraph (3); (3) in paragraph (4), by striking the period at the end and inserting “; and”; and (4) by adding at the end the following: 114 STAT. 1092 “(5) the promotion of good governance through combating corruption and improving transparency and accountability.”. (b) Development Assistance Policy.—Section 102(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151–1(b)) is amended— (1) in paragraph (4)— (A) by striking “and” at the end of subparagraph (E); (B) in subparagraph (F), by striking the period at the end and inserting “; and”; and (C) by adding at the end the following: “(G) progress in combating corruption and improving transparency and accountability in the public and private sector.”; and (2) by adding at the end the following: “(17) Economic reform and development of effective institutions of democratic governance are mutually reinforcing. The successful transition of a developing country is dependent upon the quality of its economic and governance institutions. Rule of law, mechanisms of accountability and transparency, security of person, property, and investments, are but a few of the critical governance and economic reforms that underpin the sustainability of broad-based economic growth. Programs in support of such reforms strengthen the capacity of people to hold their governments accountable and to create economic opportunity.”.