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.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Investment and Economic 
Development Fund for the Americas Act of 2003''.

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. As of today, approximately 
        one-third of the population lives in poverty and increasing 
        numbers live in extreme poverty. Poverty exists in all Latin 
        American countries but 70 percent of the region's poor live in 
        the five largest middle-income countries.
            (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 2005 through 
2009.
    ``(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.

Summary: Social Investment and Economic Development Fund for the Americas Act of 2003 - Sets forth the policy of the United States to: (1) promote market-based principles, economic integration, social development, and trade in and between countries of the Americas. And (2) establish an investment fund for the Western Hemisphere to advance the national interests of the United States, 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. Amends the Foreign Assistance Act of 1961 to require the President to 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. (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. Establishes a technical review committee to review the projects proposed for assistance and to 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. Amends the Inter-American Development Bank Act to require the Secretary of the Treasury to instruct the US Executive Director at the Bank to urge the Bank to establish an account to be operated and administered consistent with the above guidelines. Establishes a technical review committee in the same manner as discussed above. Expresses the sense of Congress that the countries of the Western Hemisphere should collectively provide assistance equal to the amount of US bilateral and multilateral assistance provided.