[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 953 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 953
To authorize the establishment of a Social Investment and Economic
Development Fund for the Americas to provide assistance to reduce
poverty and foster increased economic opportunity in the countries of
the Western Hemisphere, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 17, 2005
Mr. Menendez (for himself, Mr. Burton of Indiana, Mr. Lantos, Ms. Ros-
Lehtinen, Mr. Delahunt, Mrs. Napolitano, Ms. Harris, Mr. Meeks of New
York, Mr. Payne, Ms. Lee, Mr. Berman, Mr. Ackerman, Mr. Sherman, Mr.
Wexler, Mr. Engel, Mr. Crowley, Ms. Corrine Brown of Florida, Mr.
Gonzalez, Mr. Rush, Mr. McGovern, Mr. Gutierrez, Mr. Rangel, Mr. Owens,
Mr. Serrano, Mr. Reyes, Mr. Hastings of Florida, Mrs. Christensen, Ms.
Velazquez, Ms. Linda T. Sanchez of California, and Mr. Baca) introduced
the following bill; which was referred to the Committee on
International Relations, and in addition to the Committee on Financial
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To authorize the establishment of a Social Investment and Economic
Development Fund for the Americas to provide assistance to reduce
poverty and foster increased economic opportunity in the countries of
the Western Hemisphere, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Social Investment and Economic
Development Fund for the Americas Act of 2005''.
SEC. 2. FINDINGS; STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) The historic economic, political, cultural, and
geographic relationships among the countries of the Western
Hemisphere are unique and of continuing special significance to
the United States.
(2) The interests of the countries of the Western
Hemisphere are more interrelated today than ever before.
Consequently, sound economic, social, and democratic progress
in each of the countries continues to benefit other countries,
and lack of it in any country may have serious repercussions in
others.
(3) Following the historic Summits of the Americas--the
1994 Summit in Miami, the 1998 Summit in Santiago, Chile, and
the 2001 Summit in Quebec City, Canada--the heads of state of
the countries of the Western Hemisphere accepted the formidable
challenge of economic and social integration in and between
their respective countries.
(4) To make progress toward economic and social
integration, there is a compelling need to focus on the social
development of the people of the Americas which, in turn, will
promote the economic and political development of the region.
(5) Investment in social development in the Americas,
including investment in human and social capital, specifically
in education, health, housing, and labor markets with the goal
of combating social exclusion and social ills, will consolidate
political democracy and the rule of law and promote regional
economic integration and trade in the region.
(6) The challenge of achieving economic integration between
one of the world's most developed economies and some of the
poorest and most vulnerable countries requires a special effort
to promote social equality, develop skills, and modernize the
infrastructure in poorer countries that will enable the people
of these countries to maximize the amount of benefits accrued
from economic integration.
(7) The particular challenge facing social and economic
development in Latin America is the historic and persistent
highly unequal distribution of wealth. Latin America suffers
from the most unequal distribution of wealth in the world with
huge inequities in the distribution of assets including
education, land, and credit.
(8) Latin America also confronts the challenge of an
increasing number of poor people. Approximately 44 percent of
the population lives in poverty and extreme poverty is a
persistent problem.
(9) Marginalized groups, including indigenous populations,
people of African descent, women, people with disabilities, and
rural populations, are socially excluded and suffer from
poverty, stigma, and discrimination.
(10) Democratic values are dominant throughout the
Americas, and nearly all governments in the region have come to
power through democratic elections.
(11) Nonetheless, existing democratic governments and their
constituent institutions remain fragile and face critical
challenges including effective democratic civilian authority
over these institutions, including the military, the
consolidation or establishment of independent judicial
institutions and the rule of law, and the elimination of
corruption.
(12) The prosperity, security, and well-being of the United
States is linked directly to peace, prosperity, and democracy
in the Americas. The entire region benefits by reducing
poverty, strengthening the middle class, and promoting the rule
of law which will also increase markets for United States goods
and create a better environment for regional investment by
United States businesses.
(13) Section 101 of the Foreign Assistance Act of 1961 (22
U.S.C. 2151) establishes as a principal objective of United
States foreign assistance the ``encouragement and sustained
support of the people of developing countries in their efforts
to acquire the knowledge and resources essential to development
and to build the economic, political, and social institutions
which will improve the quality of their lives''.
(14) It is in the national interests of the United States
to assist developing countries in the Western Hemisphere as
they implement the economic and political policies which are
necessary to achieve equitable economic growth.
(15) The Summit of the Americas has directly charged the
multilateral institutions of the Americas, including the
Organization of American States (OAS), the Inter-American
Development Bank (IADB), and the new Inter-American Agency for
Cooperation and Development with mobilizing private-public
sector partnerships among industry and civil society to help
achieve equitable development objectives.
(16) By supporting the purposes and objectives of
development and applying such purposes and objectives to the
Americas, a Social Investment and Economic Development Fund for
the Americas can advance the national interests of the United
States and can directly improve the lives of the poor and
marginalized groups, encourage broad-based economic growth
while protecting the environment, build human capital and
knowledge, support meaningful participation in democracy, and
promote peace and justice in the Americas.
(b) Statement of Policy.--It is, therefore, the policy of the
United States--
(1) to promote market-based principles, economic
integration, social development, and trade in and between
countries of the Americas by--
(A) nurturing public-private partnerships and
microenterprise development;
(B) improving the quality of life and investing in
human capital, specifically targeting education, health
and disease prevention, and housing;
(C) strengthening the rule of law through improved
efficiency and transparency in government services; and
(D) reducing poverty and eliminating the exclusion
of marginalized populations, including people of
African descent, indigenous groups, women, and people
with disabilities; and
(2) to establish an investment fund for the Western
Hemisphere to advance the national interests of the United
States, directly improve the lives of the poor and
marginalized, encourage broad-based economic growth while
protecting the environment, build human capital and knowledge,
support meaningful participation in democratic institutions and
processes, and promote peace and justice in the Americas.
SEC. 3. AMENDMENT TO FOREIGN ASSISTANCE ACT OF 1961.
Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.) is amended by adding at the end the following:
``CHAPTER 13--SOCIAL INVESTMENT AND ECONOMIC DEVELOPMENT FUND FOR THE
AMERICAS
``SEC. 499H. AUTHORIZATION OF ASSISTANCE.
``(a) In General.--The President, acting through the Administrator
of the United States Agency for International Development, shall
provide assistance to reduce poverty and foster increased economic
opportunity in the countries of the Western Hemisphere by--
``(1) nurturing public-private partnerships and
microenterprise development;
``(2) improving the quality of life and investing in human
capital, specifically targeting education, health and disease
prevention, and housing;
``(3) strengthening the rule of law through improved
efficiency and transparency in government services; and
``(4) reducing poverty and eliminating the exclusion of
marginalized populations, including people of African descent,
indigenous groups, women, and people with disabilities.
``(b) Terms and Conditions.--Assistance under this chapter may be
provided on such other terms and conditions as the President may
determine.
``SEC. 499I. TECHNICAL REVIEW COMMITTEE.
``(a) In General.--There is established within the United States
Agency for International Development a technical review committee.
``(b) Membership.--The President, by and with the advice and
consent of the Senate, shall appoint to serve on the technical review
committee--
``(1) individuals with technical expertise with respect to
the development of Latin America and the Caribbean; and
``(2) citizens of the United States with technical
expertise with respect to development projects and business
experience.
Technical expertise shall be the sole criterion in making appointments
to the technical review committee.
``(c) Duties.--The technical review committee shall review all
projects proposed for funding using assistance provided under section
499H(a), and make recommendations to the President with respect to the
guidelines to be used in evaluating project proposals and the
suitability of the proposed projects for funding.
``(d) Conflicts of Interest.--A member of the technical review
committee shall not be permitted to review an application submitted by
an organization with which the member has been or is affiliated.
``SEC. 499J. REPORT.
``The President shall prepare and transmit to the Committee on
International Relations of the House of Representatives, the Committee
on Foreign Relations of the Senate, and other appropriate congressional
committees an annual report on the specific programs, projects, and
activities carried out under this chapter during the preceding year,
including an evaluation of the results of such programs, projects, and
activities.
``SEC. 499K. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this chapter $250,000,000 for each of the fiscal years 2006 through
2010.
``(b) Additional Authorities.--Amounts appropriated pursuant to
subsection (a)--
``(1) may be referred to as the `United States Social
Investment and Economic Development Fund for the Americas';
``(2) are authorized to remain available until expended;
and
``(3) are in addition to amounts otherwise available for
such purposes.
``(c) Funding Limitation.--Not more than 7 percent of the amounts
appropriated pursuant to subsection (a) for a fiscal year may be used
for administrative expenses.''.
SEC. 4. AMENDMENT TO THE INTER-AMERICAN DEVELOPMENT BANK ACT.
The Inter-American Development Bank Act (22 U.S.C. 283-283z-10) is
amended by adding at the end the following:
``SEC. 39. SOCIAL INVESTMENT AND ECONOMIC DEVELOPMENT FUND FOR THE
AMERICAS.
``(a) In General.--The Secretary of the Treasury shall instruct the
United States Executive Director at the Bank to use the voice, vote,
and influence of the United States to urge the Bank to establish an
account to be known as the `Social Investment and Economic Development
Fund for the Americas' (in this section referred to as the `Fund'),
which is to be operated and administered by the Board of Executive
Directors of the Bank consistent with subsection (b). The United States
Governor of the Bank may vote for a resolution transmitted by the Board
of Executive Directors which provides for the establishment of such an
account, and the operation and administration of the account consistent
with subsection (b).
``(b) Governing Rules.--
``(1) Use of funds.--The Fund shall be used to provide
assistance to reduce poverty and foster increased economic
opportunity in the countries of the Western Hemisphere by--
``(A) nurturing public-private partnerships and
microenterprise development;
``(B) improving the quality of life and investing
in human capital, specifically targeting education,
health and disease prevention, and housing;
``(C) strengthening the rule of law through
improved efficiency and transparency in government
services; and
``(D) reducing poverty and eliminating the
exclusion of marginalized populations, including people
of African descent, indigenous groups, women, and
people with disabilities.
``(2) Application for funding through a competitive
process.--Any interested person or organization may submit an
application for funding by the Fund.
``(3) Technical review committee.--
``(A) In general.--The Fund shall have a technical
review committee.
``(B) Membership.--The Board of Executive Directors
of the Bank shall appoint to serve on the technical
review committee--
``(i) individuals with technical expertise
with respect to the development of Latin
America and the Caribbean; and
``(ii) citizens of the United States with
technical expertise with respect to development
projects and business experience.
Technical expertise shall be the sole criterion (other
than citizenship pursuant to clause (ii)) in making
appointments to the technical review committee.
``(C) Duties.--The technical review committee shall
review all projects proposed for funding by the Fund,
and make recommendations to the Board of Executive
Directors of the Bank with respect to the guidelines to
be used in evaluating project proposals and the
suitability of the proposed projects for funding.
``(D) Conflicts of interest.--A member of the
technical review committee shall not be permitted to
review an application submitted by an organization with
which the member has been or is affiliated.
``(4) Review of proposed projects.--Not more frequently
than annually, the Board of Executive Directors of the Bank
shall review and make decisions on applications for projects to
be funded by the Fund, in accordance with procedures which
provide for transparency. The Board of Executive Directors
shall provide advance notice to all interested parties of any
date on which such a review will be conducted.
``(c) Contribution Authority.--To the extent and in the amounts
provided in advance in appropriations Acts, the United States Governor
of the Bank may contribute to the Fund $1,250,000,000.
``(d) Limitations on Authorization of Appropriations.--
``(1) In general.--For the contribution authorized by
subsection (c), there are authorized to be appropriated for
payment to the Secretary of the Treasury $250,000,000 for each
fiscal year beginning with the fiscal year in which the
resolution described in subsection (a) is adopted.
``(2) Additional authorities.--Amounts appropriated
pursuant to paragraph (1)--
``(A) are authorized to remain available until
expended; and
``(B) are in addition to amounts otherwise
available for such purposes.
``(3) Funding limitation.--Not more than 7 percent of the
amounts appropriated pursuant to paragraph (1) for a fiscal
year may be used for administrative expenses.''.
SEC. 5. SENSE OF CONGRESS.
It is the sense of Congress that the countries of the Western
Hemisphere should collectively provide assistance equal to the amount
of United States bilateral assistance provided under chapter 13 of part
I of the Foreign Assistance Act of 1961 (as added by section 3(a) of
this Act) and multilateral assistance provided by the Social Investment
and Economic Development Fund for the Americas under section 39 of the
Inter-American Development Bank Act (as added by section 4 of this Act)
for the same purpose for which such assistance was provided.
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