II

Calendar No. 843

106TH CONGRESS

2D SESSION S. 3072

To assist in the enhancement of the development and expansion of international economic assistance programs that utilize cooperatives and credit

unions, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 19, 2000

Mr. GRAMS (for himself, Mr. HAGEL, and Mr. FEINGOLD) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

SEPTEMBER 28 (legislative day, SEPTEMBER 22), 2000

Reported by Mr. HELMS without amendment

A BILL

To assist in the enhancement of the development and expansion of international economic assistance programs that

utilize cooperatives and credit unions, 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,

3 SECTION. 1. SHORT TITLE

4 This Act may be cited as the ‘‘Support for Overseas

5 Cooperative Development Act’’.
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S 3072 RS

1 SEC. 2. FINDINGS

2 The Congress makes the following findings:

3 (1) It is in the mutual economic interest of the

4 United States and peoples in developing and transi5 tional countries to promote cooperatives and credit

6 unions.

7 (2) Self-help institutions, including cooperatives

8 and credit unions, provide enhanced opportunities

9 for people to participate directly in democratic deci10 sion-making for their economic and social benefit

11 through ownership and control of business enter12 prises and through the mobilization of local capital

13 and savings and such organizations should be fully

14 utilized in fostering free market principles and the

15 adoption of self-help approaches to development.

16 (3) The United States seeks to encourage

17 broad-based economic and social development by cre18 ating and supporting—

19 (A) agricultural cooperatives that provide a

20 means to lift low income farmers and rural peo21 ple out of poverty and to better integrate them

22 into national economies;

23 (B) credit union networks that serve peo24 ple of limited means through safe savings and

25 by extending credit to families and microenter26 prises;
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S 3072 RS

1 (C) electric and telephone cooperatives that

2 provide rural customers with power and tele3 communications services essential to economic

4 development;

5 (D) housing and community-based co6 operatives that provide low income shelter and

7 work opportunities for the urban poor; and

8 (E) mutual and cooperative insurance com9 panies that provide risk protection for life and

10 property to under-served populations often

11 through group policies.

12 SEC. 3. GENERAL PROVISIONS.

13 (a) DECLARATIONS OF POLICY.—The Congress sup14 ports the development and expansion of economic assist15 ance programs that fully utilize cooperatives and credit

16 unions, particularly those programs committed to—

17 (1) international cooperative principles, demo18 cratic governance and involvement of women and

19 ethnic minorities for economic and social develop20 ment;

21 (2) self-help mobilization of member savings

22 and equity, retention of profits in the community,

23 except those programs that are dependent on donor

24 financing;
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S 3072 RS

1 (3) market-oriented and value-added activities

2 with the potential to reach large numbers of low in3 come people and help them enter into the main4 stream economy;

5 (4) strengthening the participation of rural and

6 urban poor to contribute to their country’s economic

7 development; and

8 (5) utilization of technical assistance and train9 ing to better serve the member-owners.

10 (b) DEVELOPMENT PRIORITIES.—Section 111 of the

11 Foreign Assistance Act of 1961 (22 U.S.C. 2151i) is

12 amended by adding at the end the following: ‘‘In meeting

13 the requirement of the preceding sentence, specific priority

14 shall be given to the following:

15 ‘‘(1) AGRICULTURE.—Technical assistance to

16 low income farmers who form and develop member17 owned cooperatives for farm supplies, marketing and

18 value-added processing.

19 ‘‘(2) FINANCIAL SYSTEMS.—The promotion of

20 national credit union systems through credit union21 to-credit union technical assistance that strengthens

22 the ability of low income people and micro-entre23 preneurs to save and to have access to credit for

24 their own economic advancement.
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1 ‘‘(3) INFRASTRUCTURE.—The support of rural

2 electric and telecommunication cooperatives for ac3 cess for rural people and villages that lack reliable

4 electric and telecommunications services.

5 ‘‘(4) HOUSING AND COMMUNITY SERVICES.—

6 The promotion of community-based cooperatives

7 which provide employment opportunities and impor8 tant services such as health clinics, self-help shelter,

9 environmental improvements, group-owned busi10 nesses, and other activities.’’.

11 SEC. 4. REPORT.

12 Not later than 6 months after the date of enactment

13 of this Act, the Administrator of the United States Agency

14 for International Development, in consultation with the

15 heads of other appropriate agencies, shall prepare and

16 submit to Congress a report on the implementation of sec17 tion 111 of the Foreign Assistance Act of 1961 (22 U.S.C.

18 2151i), as amended by section 3 of this Act.
Calendar No. 843

106TH CONGRESS

2D SESSION S. 3072

A BILL

To assist in the enhancement of the development

and expansion of international economic assistance programs that utilize cooperatives and credit unions, and for other purposes.

SEPTEMBER 28 (legislative day, SEPTEMBER 22), 2000

Reported without amendment