22 U.S.C. § 5401 — Support for East European Democracy (SEED) Program

(a) SEED Program. Beginning in fiscal year 1990, the United States must carry out a coordinated Program of Support for East European Democracy, also called the “SEED Program.” It consists of varied efforts to give cost-effective help to Eastern European countries that have taken significant steps toward democratic institutions and economic pluralism.

(b) Objectives. The President should ensure that assistance is designed: (1) to develop democratic institutions and political pluralism, including free and fair elections; recognition of speech, religion, association, and other fundamental freedoms; ending laws that block a free press or political parties; an independent judiciary; and nonpartisan military, security, and police forces; (2) to develop a free-market economy, including privatization; full rights to acquire and hold private property and land and to receive contractual benefits; simpler business regulation; ending wage and price controls; removing import and export restrictions; liberalizing investment and capital and allowing foreign investors to take profits home; tax policies encouraging activity and investment; private banks and financial firms and unrestricted private credit; and access to stock, bond, and other investment markets; and (3) not to provide a substantial benefit to Communist or other parties or organizations not committed to democracy, or to the defense or security forces of a Warsaw Pact member.

(c) SEED Actions. Assistance and other SEED activities may include: (1) United States leadership supporting World Bank loans to modernize industry, agriculture, and infrastructure and IMF programs for sound growth; (2) support for multilateral government loans to stabilize currencies where this can reduce inflation and enable reforms; (3) multilateral debt reduction or rescheduling when it helps political and economic transition; (4) grants and concessional sales of food and agricultural products to ease critical shortages without harming local production and marketing; (5) grants to nonprofit “Enterprise Funds” designated by the President and governed by boards, for loans, grants, equity investments, feasibility studies, technical help, training, and other private-enterprise assistance; (6) labor-market reform and economic-adjustment technical assistance; (7) technical skills training; (8) Peace Corps programs; (9) indigenous credit unions; (10) Generalized System of Preferences trade benefits; (11) temporary or permanent nondiscriminatory treatment for products under section 2432 of title 19, commonly called the Jackson-Vanik amendment; (12) United States International Development Finance Corporation programs; (13) Export-Import Bank programs; (14) Trade and Development Agency activities under the Foreign Assistance Act of 1961; (15) bilateral investment treaties; (16) exempting bonds from Internal Revenue Code rules on below-market loans; (17) expanded Fulbright, International Visitors, and other United States Information Agency exchanges; (18) reciprocal cultural centers; (19) sister institutions linking American and Eastern European schools, universities, towns, cities, and other organizations in fields such as medicine, health care, business, environmental protection, and agriculture; (20) scholarships for study in the United States; (21) grants implementing bilateral science and technology exchanges; (22) help for legal, legislative, electoral, journalistic, and other free-society institutions; (23) environmental help for serious air, water, and other health-related deficiencies; (24) medical help for serious shortages of medicines and basic health supplies; and (25) encouraging private investment and voluntary private help, including a SEED Information Center System and Defense Department transportation for private nonfinancial contributions.