I 

108TH CONGRESS 

1ST SESSION H. R. 3447

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 

NOVEMBER 5, 2003

Mr. MENENDEZ (for himself, Mr. BALLENGER, Mr. DELAHUNT, Ms. ROSLEHTINEN, Mr. LANTOS, Mr. WELLER, Mr. ACKERMAN, Ms. HARRIS, 

Mr. FALEOMAVAEGA, Mr. PAYNE, Mr. CROWLEY, Mrs. NAPOLITANO, Mr. 

RODRIGUEZ, Mr. REYES, Mr. GUTIERREZ, Mr. ORTIZ, Ms. ROYBAL-ALLARD, Mr. GONZALEZ, Ms. SOLIS, Mr. ACEVEDO-VILA ́, Mr. BERMAN, and 

Mr. HASTINGS of Florida) 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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Social Investment and 

3 Economic Development Fund for the Americas Act of 

4 2003’’. 

5 SEC. 2. FINDINGS; STATEMENT OF POLICY. 

6 (a) FINDINGS.—Congress finds the following: 

7 (1) The historic economic, political, cultural, 

8 and geographic relationships among the countries of 

9 the Western Hemisphere are unique and of con10 tinuing special significance to the United States. 

11 (2) The interests of the countries of the West12 ern Hemisphere are more interrelated today than 

13 ever before. Consequently, sound economic, social, 

14 and democratic progress in each of the countries 

15 continues to benefit other countries, and lack of it 

16 in any country may have serious repercussions in 

17 others. 

18 (3) Following the historic Summits of the 

19 Americas—the 1994 Summit in Miami, the 1998 

20 Summit in Santiago, Chile, and the 2001 Summit in 

21 Quebec City, Canada—the heads of state of the 

22 countries of the Western Hemisphere accepted the 

23 formidable challenge of economic and social integra24 tion in and between their respective countries. 

25 (4) To make progress toward economic and so26 cial integration, there is a compelling need to focus 
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1 on the social development of the people of the Amer2 icas which, in turn, will promote the economic and 

3 political development of the region. 

4 (5) Investment in social development in the 

5 Americas, including investment in human and social 

6 capital, specifically in education, health, housing, 

7 and labor markets with the goal of combating social 

8 exclusion and social ills, will consolidate political de9 mocracy and the rule of law and promote regional 

10 economic integration and trade in the region. 

11 (6) The challenge of achieving economic inte12 gration between one of the world’s most developed 

13 economies and some of the poorest and most vulner14 able countries requires a special effort to promote 

15 social equality, develop skills, and modernize the in16 frastructure in poorer countries that will enable the 

17 people of these countries to maximize the amount of 

18 benefits accrued from economic integration. 

19 (7) The particular challenge facing social and 

20 economic development in Latin America is the his21 toric and persistent highly unequal distribution of 

22 wealth. Latin America suffers from the most un23 equal distribution of wealth in the world with huge 

24 inequities in the distribution of assets including edu25 cation, land, and credit. 
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1 (8) Latin America also confronts the challenge 

2 of an increasing number of poor people. As of today, 

3 approximately one-third of the population lives in 

4 poverty and increasing numbers live in extreme pov5 erty. Poverty exists in all Latin American countries 

6 but 70 percent of the region’s poor live in the five 

7 largest middle-income countries. 

8 (9) Marginalized groups, including indigenous 

9 populations, people of African descent, women, peo10 ple with disabilities, and rural populations, are so11 cially excluded and suffer from poverty, stigma, and 

12 discrimination. 

13 (10) Democratic values are dominant through14 out the Americas, and nearly all governments in the 

15 region have come to power through democratic elec16 tions. 

17 (11) Nonetheless, existing democratic govern18 ments and their constituent institutions remain frag19 ile and face critical challenges including effective 

20 democratic civilian authority over these institutions, 

21 including the military, the consolidation or establish22 ment of independent judicial institutions and the 

23 rule of law, and the elimination of corruption. 

24 (12) The prosperity, security, and well-being of 

25 the United States is linked directly to peace, pros-
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1 perity, and democracy in the Americas. The entire 

2 region benefits by reducing poverty, strengthening 

3 the middle class, and promoting the rule of law 

4 which will also increase markets for United States 

5 goods and create a better environment for regional 

6 investment by United States businesses. 

7 (13) Section 101 of the Foreign Assistance Act 

8 of 1961 (22 U.S.C. 2151) establishes as a principal 

9 objective of United States foreign assistance the 

10 ‘‘encouragement and sustained support of the people 

11 of developing countries in their efforts to acquire the 

12 knowledge and resources essential to development 

13 and to build the economic, political, and social insti14 tutions which will improve the quality of their lives’’. 

15 (14) It is in the national interests of the United 

16 States to assist developing countries in the Western 

17 Hemisphere as they implement the economic and po18 litical policies which are necessary to achieve equi19 table economic growth. 

20 (15) The Summit of the Americas has directly 

21 charged the multilateral institutions of the Americas, 

22 including the Organization of American States 

23 (OAS), the Inter-American Development Bank 

24 (IADB), and the new Inter-American Agency for Co25 operation and Development with mobilizing private-
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1 public sector partnerships among industry and civil 

2 society to help achieve equitable development objec3 tives. 

4 (16) By supporting the purposes and objectives 

5 of development and applying such purposes and ob6 jectives to the Americas, a Social Investment and 

7 Economic Development Fund for the Americas can 

8 advance the national interests of the United States 

9 and can directly improve the lives of the poor and 

10 marginalized groups, encourage broad-based eco11 nomic growth while protecting the environment, 

12 build human capital and knowledge, support mean13 ingful participation in democracy, and promote 

14 peace and justice in the Americas. 

15 (b) STATEMENT OF POLICY.—It is, therefore, the 

16 policy of the United States—

17 (1) to promote market-based principles, eco18 nomic integration, social development, and trade in 

19 and between countries of the Americas by—

20 (A) nurturing public-private partnerships 

21 and microenterprise development; 

22 (B) improving the quality of life and in23 vesting in human capital, specifically targeting 

24 education, health and disease prevention, and 

25 housing;
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1 (C) strengthening the rule of law through 

2 improved efficiency and transparency in govern3 ment services; and 

4 (D) reducing poverty and eliminating the 

5 exclusion of marginalized populations, including 

6 people of African descent, indigenous groups, 

7 women, and people with disabilities; and 

8 (2) to establish an investment fund for the 

9 Western Hemisphere to advance the national inter10 ests of the United States, directly improve the lives 

11 of the poor and marginalized, encourage broad-based 

12 economic growth while protecting the environment, 

13 build human capital and knowledge, support mean14 ingful participation in democratic institutions and 

15 processes, and promote peace and justice in the 

16 Americas. 

17 SEC. 3. AMENDMENT TO FOREIGN ASSISTANCE ACT OF 

18 1961. 

19 Part I of the Foreign Assistance Act of 1961 (22 

20 U.S.C. 2151 et seq.) is amended by adding at the end 

21 the following: 
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1 ‘‘CHAPTER 13—SOCIAL INVESTMENT AND 

2 ECONOMIC DEVELOPMENT FUND FOR 

3 THE AMERICAS 

4 ‘‘SEC. 499H. AUTHORIZATION OF ASSISTANCE. 

5 ‘‘(a) IN GENERAL.—The President, acting through 

6 the Administrator of the United States Agency for Inter7 national Development, shall provide assistance to reduce 

8 poverty and foster increased economic opportunity in the 

9 countries of the Western Hemisphere by—

10 ‘‘(1) nurturing public-private partnerships and 

11 microenterprise development; 

12 ‘‘(2) improving the quality of life and investing 

13 in human capital, specifically targeting education, 

14 health and disease prevention, and housing; 

15 ‘‘(3) strengthening the rule of law through im16 proved efficiency and transparency in government 

17 services; and 

18 ‘‘(4) reducing poverty and eliminating the ex19 clusion of marginalized populations, including people 

20 of African descent, indigenous groups, women, and 

21 people with disabilities. 

22 ‘‘(b) TERMS AND CONDITIONS.—Assistance under 

23 this chapter may be provided on such other terms and con24 ditions as the President may determine. 
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1 ‘‘SEC. 499I. TECHNICAL REVIEW COMMITTEE. 

2 ‘‘(a) IN GENERAL.—There is established within the 

3 United States Agency for International Development a 

4 technical review committee. 

5 ‘‘(b) MEMBERSHIP.—The President, by and with the 

6 advice and consent of the Senate, shall appoint to serve 

7 on the technical review committee—

8 ‘‘(1) individuals with technical expertise with 

9 respect to the development of Latin America and the 

10 Caribbean; and 

11 ‘‘(2) citizens of the United States with technical 

12 expertise with respect to development projects and 

13 business experience. 

14 Technical expertise shall be the sole criterion in making 

15 appointments to the technical review committee. 

16 ‘‘(c) DUTIES.—The technical review committee shall 

17 review all projects proposed for funding using assistance 

18 provided under section 499H(a), and make recommenda19 tions to the President with respect to the guidelines to 

20 be used in evaluating project proposals and the suitability 

21 of the proposed projects for funding. 

22 ‘‘(d) CONFLICTS OF INTEREST.—A member of the 

23 technical review committee shall not be permitted to re24 view an application submitted by an organization with 

25 which the member has been or is affiliated. 
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1 ‘‘SEC. 499J. REPORT. 

2 ‘‘The President shall prepare and transmit to the 

3 Committee on International Relations of the House of 

4 Representatives, the Committee on Foreign Relations of 

5 the Senate, and other appropriate congressional commit6 tees an annual report on the specific programs, projects, 

7 and activities carried out under this chapter during the 

8 preceding year, including an evaluation of the results of 

9 such programs, projects, and activities. 

10 ‘‘SEC. 499K. AUTHORIZATION OF APPROPRIATIONS. 

11 ‘‘(a) IN GENERAL.—There are authorized to be ap12 propriated to carry out this chapter $250,000,000 for 

13 each of the fiscal years 2005 through 2009. 

14 ‘‘(b) ADDITIONAL AUTHORITIES.—Amounts appro15 priated pursuant to subsection (a)—

16 ‘‘(1) may be referred to as the ‘United States 

17 Social Investment and Economic Development Fund 

18 for the Americas’; 

19 ‘‘(2) are authorized to remain available until ex20 pended; and 

21 ‘‘(3) are in addition to amounts otherwise avail22 able for such purposes. 

23 ‘‘(c) FUNDING LIMITATION.—Not more than 7 per24 cent of the amounts appropriated pursuant to subsection 

25 (a) for a fiscal year may be used for administrative ex26 penses.’’.
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1 SEC. 4. AMENDMENT TO THE INTER-AMERICAN DEVELOP2 MENT BANK ACT. 

3 The Inter-American Development Bank Act (22 

4 U.S.C. 283—283z–10) is amended by adding at the end 

5 the following: 

6 ‘‘SEC. 39. SOCIAL INVESTMENT AND ECONOMIC DEVELOP7 MENT FUND FOR THE AMERICAS. 

8 ‘‘(a) IN GENERAL.—The Secretary of the Treasury 

9 shall instruct the United States Executive Director at the 

10 Bank to use the voice, vote, and influence of the United 

11 States to urge the Bank to establish an account to be 

12 known as the ‘Social Investment and Economic Develop13 ment Fund for the Americas’ (in this section referred to 

14 as the ‘Fund’), which is to be operated and administered 

15 by the Board of Executive Directors of the Bank con16 sistent with subsection (b). The United States Governor 

17 of the Bank may vote for a resolution transmitted by the 

18 Board of Executive Directors which provides for the estab19 lishment of such an account, and the operation and admin20 istration of the account consistent with subsection (b). 

21 ‘‘(b) GOVERNING RULES.—

22 ‘‘(1) USE OF FUNDS.—The Fund shall be used 

23 to provide assistance to reduce poverty and foster in24 creased economic opportunity in the countries of the 

25 Western Hemisphere by—
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1 ‘‘(A) nurturing public-private partnerships 

2 and microenterprise development; 

3 ‘‘(B) improving the quality of life and in4 vesting in human capital, specifically targeting 

5 education, health and disease prevention, and 

6 housing; 

7 ‘‘(C) strengthening the rule of law through 

8 improved efficiency and transparency in govern9 ment services; and 

10 ‘‘(D) reducing poverty and eliminating the 

11 exclusion of marginalized populations, including 

12 people of African descent, indigenous groups, 

13 women, and people with disabilities. 

14 ‘‘(2) APPLICATION FOR FUNDING THROUGH A

15 COMPETITIVE PROCESS.—Any interested person or 

16 organization may submit an application for funding 

17 by the Fund. 

18 ‘‘(3) TECHNICAL REVIEW COMMITTEE.—

19 ‘‘(A) IN GENERAL.—The Fund shall have 

20 a technical review committee. 

21 ‘‘(B) MEMBERSHIP.—The Board of Execu22 tive Directors of the Bank shall appoint to 

23 serve on the technical review committee—
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1 ‘‘(i) individuals with technical exper2 tise with respect to the development of 

3 Latin America and the Caribbean; and 

4 ‘‘(ii) citizens of the United States with 

5 technical expertise with respect to develop6 ment projects and business experience. 

7 Technical expertise shall be the sole criterion 

8 (other than citizenship pursuant to clause (ii)) 

9 in making appointments to the technical review 

10 committee. 

11 ‘‘(C) DUTIES.—The technical review com12 mittee shall review all projects proposed for 

13 funding by the Fund, and make recommenda14 tions to the Board of Executive Directors of the 

15 Bank with respect to the guidelines to be used 

16 in evaluating project proposals and the suit17 ability of the proposed projects for funding. 

18 ‘‘(D) CONFLICTS OF INTEREST.—A mem19 ber of the technical review committee shall not 

20 be permitted to review an application submitted 

21 by an organization with which the member has 

22 been or is affiliated. 

23 ‘‘(4) REVIEW OF PROPOSED PROJECTS.—Not 

24 more frequently than annually, the Board of Execu25 tive Directors of the Bank shall review and make de-
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1 cisions on applications for projects to be funded by 

2 the Fund, in accordance with procedures which pro3 vide for transparency. The Board of Executive Di4 rectors shall provide advance notice to all interested 

5 parties of any date on which such a review will be 

6 conducted. 

7 ‘‘(c) CONTRIBUTION AUTHORITY.—To the extent and 

8 in the amounts provided in advance in appropriations 

9 Acts, the United States Governor of the Bank may con10 tribute to the Fund $1,250,000,000. 

11 ‘‘(d) LIMITATIONS ON AUTHORIZATION OF APPRO12 PRIATIONS.—

13 ‘‘(1) IN GENERAL.—For the contribution au14 thorized by subsection (c), there are authorized to be 

15 appropriated for payment to the Secretary of the 

16 Treasury $250,000,000 for each fiscal year begin17 ning with the fiscal year in which the resolution de18 scribed in subsection (a) is adopted. 

19 ‘‘(2) ADDITIONAL AUTHORITIES.—Amounts ap20 propriated pursuant to paragraph (1)—

21 ‘‘(A) are authorized to remain available 

22 until expended; and 

23 ‘‘(B) are in addition to amounts otherwise 

24 available for such purposes. 
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1 ‘‘(3) FUNDING LIMITATION.—Not more than 7 

2 percent of the amounts appropriated pursuant to 

3 paragraph (1) for a fiscal year may be used for ad4 ministrative expenses.’’. 

5 SEC. 5. SENSE OF CONGRESS. 

6 It is the sense of Congress that the countries of the 

7 Western Hemisphere should collectively provide assistance 

8 equal to the amount of United States bilateral assistance 

9 provided under chapter 13 of part I of the Foreign Assist10 ance Act of 1961 (as added by section 3(a) of this Act) 

11 and multilateral assistance provided by the Social Invest12 ment and Economic Development Fund for the Americas 

13 under section 39 of the Inter-American Development 

14 Bank Act (as added by section 4 of this Act) for the same 

15 purpose for which such assistance was provided.

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