### §2151i. Development and use of cooperatives

In order to strengthen the participation of the rural and urban poor in their country's development, high priority shall be given to increasing the use of funds made available under this chapter for technical and capital assistance in the development and use of cooperatives in the less developed countries which will enable and encourage greater numbers of the poor to help themselves toward a better life. 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 support of rural electric and telecommunication cooperatives for 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.

(Pub. L. 87–195, pt. I, §111, as added Pub. L. 93–189, §2(3), Dec. 17, 1973, 87 Stat. 716; amended Pub. L. 94–161, title III, §308, Dec. 20, 1975, 89 Stat. 859; Pub. L. 95–88, title I, §107(a), Aug. 3, 1977, 91 Stat. 535; Pub. L. 96–53, title I, §122, Aug. 14, 1979, 93 Stat. 366; Pub. L. 106–309, title IV, §401(c)(2), Oct. 17, 2000, 114 Stat. 1097.)

#### **Editorial Notes**

#### References in Text

This chapter, referred to in text, was in the original "this Act", meaning Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, known as the Foreign Assistance Act of 1961. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.

#### Amendments

2000—Pub. L. 106–309 inserted at end "In meeting the requirement of the preceding sentence, specific priority shall be given to the following:" and pars. (1) to (4).

1979—Pub. L. 96–53 struck out provisions relating to availability of funds for fiscal year 1978 for technical assistance.

1977—Pub. L. 95–88 substituted "technical and capital assistance in the development and use of cooperatives" for "assistance in the development of cooperatives" and "$10,000,000 of the funds made available under this chapter for the fiscal year 1978 may be used only for technical assistance" for "$20,000,000 of such funds shall be used during the fiscal years 1976 and 1977, including the period from July 1, 1976, through September 30, 1976, only for technical assistance".

1975—Pub. L. 94–161 earmarked not less than $20,000,000 for technical assistance during fiscal years 1976 and 1977, including period from July 1, 1976, through Sept. 30, 1976, and deleted similar provision making such minimum sum available for use during fiscal years 1974 and 1975.

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date of 1979 Amendment

Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of this title.

#### Effective Date of 1977 Amendment

Pub. L. 95–88, title I, §107(b), Aug. 3, 1977, 91 Stat. 536, provided that: "The amendments made by subsection (a) [amending this section] shall take effect on October 1, 1977."

#### Findings

Pub. L. 106–309, title IV, §401(b), Oct. 17, 2000, 114 Stat. 1096, provided that: "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."

#### Declarations of Policy

Pub. L. 106–309, title IV, §401(c)(1), Oct. 17, 2000, 114 Stat. 1096, provided that: "The Congress supports the development and expansion of economic assistance programs that fully utilize cooperatives and credit unions, particularly those programs committed to—

"(A) international cooperative principles, democratic governance and involvement of women and ethnic minorities for economic and social development;

"(B) self-help mobilization of member savings and equity and retention of profits in the community, except for those programs that are dependent on donor financing;

"(C) 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;

"(D) strengthening the participation of rural and urban poor to contribute to their country's economic development; and

"(E) utilization of technical assistance and training to better serve the member-owners."

#### Report

Pub. L. 106–309, title IV, §401(d), Oct. 17, 2000, 114 Stat. 1097, provided that: "Not later than 6 months after the date of the enactment of this Act [Oct. 17, 2000], 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 subsection (c)."