Support for Overseas Cooperative Development Act

SECTION. 1. SHORT TITLE

    This Act may be cited as the ``Support for Overseas Cooperative 
Development Act''.

SEC. 2. FINDINGS

    The Congress makes the following findings:
            (1) It is in the mutual economic interest of the United 
        States and peoples in developing and transitional countries to 
        promote cooperatives and credit unions.
            (2) Self-help institutions, including cooperatives and 
        credit unions, provide enhanced opportunities for people to 
        participate directly in democratic decision-making for their 
        economic and social benefit through ownership and control of 
        business enterprises and through the mobilization of local 
        capital and savings and such organizations should be fully 
        utilized in fostering free market principles and the adoption 
        of self-help approaches to development.
            (3) The United States seeks to encourage broad-based 
        economic and social development by creating and supporting--
                    (A) agricultural cooperatives that provide a means 
                to lift low income farmers and rural people out of 
                poverty and to better integrate them into national 
                economies;
                    (B) credit union networks that serve people of 
                limited means through safe savings and by extending 
                credit to families and microenterprises;
                    (C) electric and telephone cooperatives that 
                provide rural customers with power and 
                telecommunications services essential to economic 
                development;
                    (D) housing and community-based cooperatives that 
                provide low income shelter and work opportunities for 
                the urban poor; and
                    (E) mutual and cooperative insurance companies that 
                provide risk protection for life and property to under-
                served populations often through group policies.

SEC. 3. GENERAL PROVISIONS.

    (a) Declarations of Policy.--The Congress supports the development 
and expansion of economic assistance programs that fully utilize 
cooperatives and credit unions, particularly those programs committed 
to--
            (1) international cooperative principles, democratic 
        governance and involvement of women and ethnic minorities for 
        economic and social development;
            (2) self-help mobilization of member savings and equity, 
        retention of profits in the community, except those programs 
        that are dependent on donor financing;
            (3) market-oriented and value-added activities with the 
        potential to reach large numbers of low income people and help 
        them enter into the mainstream economy;
            (4) strengthening the participation of rural and urban poor 
        to contribute to their country's economic development; and
            (5) utilization of technical assistance and training to 
        better serve the member-owners.
    (b) Development Priorities.--Section 111 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2151i) is amended by adding at the end the 
following: ``In meeting the requirement of the preceding sentence, 
specific priority shall be given to the following:
            ``(1) Agriculture.--Technical assistance to low income 
        farmers who form and develop member-owned cooperatives for farm 
        supplies, marketing and value-added processing.
            ``(2) Financial systems.--The promotion of national credit 
        union systems through credit union-to-credit union technical 
        assistance that strengthens the ability of low income people 
        and micro-entrepreneurs to save and to have access to credit 
        for their own economic advancement.
            ``(3) Infrastructure.--The establishment of rural electric 
        and telecommunication cooperatives for universal access for 
        rural people and villages that lack reliable electric and 
        telecommunications services.
            ``(4) Housing and community services.--The promotion of 
        community-based cooperatives which provide employment 
        opportunities and important services such as health clinics, 
        self-help shelter, environmental improvements, group-owned 
        businesses, and other activities.''.

SEC. 4. REPORT.

    Not later than 6 months after the date of the enactment of this 
Act, the Administrator of the United States Agency for International 
Development, in consultation with the heads of other appropriate 
agencies, shall prepare and submit to Congress a report on the 
implementation of section 111 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151i), as amended by section 3 of this Act.

            Passed the House of Representatives September 19, 2000.

            Attest:

                                                                 Clerk.

Summary: Amends the Foreign Assistance Act of 1961 to provide that, in meeting the goal of strengthening the participation of the rural and urban poor in their country's development through the use of development funds for technical and capital assistance in the development and use of cooperatives in less developed countries, that priority be given to: (1) technical assistance to low income farmers who form and develop member-owned cooperatives for farm supplies, marketing, and value-added processing. (2) the promotion of national credit union technical assistance that strengthens the ability of low income people and micro-entrepreneurs to save and to have access to credit for their own economic advancement. (3) the establishment of rural electric and telecommunication cooperatives for universal access for rural people and villages that lack reliable electric and telecommunications services. And (4) the promotion of community- based cooperatives which provide employment opportunities and important services such as health clinics, self-help shelters, environmental improvements, group-owned businesses, and other activities.