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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 682 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                 S. 682

  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 SENATE OF THE UNITED STATES

                             March 17, 2005

   Mr. Dodd introduced the following bill; which was read twice and 
             referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Investment and Economic 
Development Fund for the Americas Act of 2005''.

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, the 
        2001 Summit in Quebec City, Canada, and the 2004 Special Summit 
        in Monterrey, Mexico, 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 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 has the potential to advance the national 
        interests of the United States and 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 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, nutrition, and housing;
                    (C) strengthening the rule of law through improved 
                efficiency and transparency in government services and 
                increasing civil society participation in government; 
                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) Statement of Policy.--It is 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, nutrition, and housing;
                    ``(C) strengthening the rule of law through 
                improved efficiency and transparency in government 
                services and increasing civil society participation in 
                government; 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.
    ``(b) 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, nutrition, and housing;
            ``(3) strengthening the rule of law through improved 
        efficiency and transparency in government services and 
        increasing civil society participation in government; and
            ``(4) reducing poverty and eliminating the exclusion of 
        marginalized populations, including people of African descent, 
        indigenous groups, women, and people with disabilities.
    ``(c) Terms and Conditions.--Assistance under this chapter may be 
provided on such other terms and conditions as the President may 
determine, consistent with the goal of promoting economic and social 
development.

``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.--
            ``(1) In general.--The President, by and with the advice 
        and consent of the Senate, shall appoint to serve on the 
        technical review committee--
                    ``(A) individuals with technical expertise with 
                respect to the development projects, including 
                grassroots development of Latin America and the 
                Caribbean; and
                    ``(B) citizens of the United States with technical 
                expertise with respect to development projects and 
                business experience.
            ``(2) Criteria for appointment.--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. CONSULTATIVE COMMITTEE.

    ``(a) In General.--A country that receives assistance under this 
chapter shall establish a Consultative Committee to make 
recommendations regarding how such assistance should be used to carry 
out the policy set out in section 499H(a).
    ``(b) Membership.--A Consultative Committee should include 
individuals from civil society organizations that represent or have 
experience in working in the following:
            ``(1) Marginalized populations.
            ``(2) Trade and small farmer unions.
            ``(3) Rural development and agrarian reform.
            ``(4) Microenterprise and grassroots development.
            ``(5) Access to government social services.
            ``(6) Rule of law and government reform.
    ``(c) Duties.--A Consultative Committee for a country shall--
            ``(1) make recommendations to the technical review 
        committee established under section 499I and to the appropriate 
        country mission of the United States Agency for International 
        Development on projects proposed to receive assistance under 
        section 499H(a) that affect such country;
            ``(2) have access documents and other information related 
        to project proposals and funding decisions that affect such 
        country; and
            ``(3) develop and publish rules and procedures under which 
        the Committee will carry out its duties.
    ``(d) Conflicts of Interest.--A member of the Consultative 
Committee may not be permitted to review an application submitted by an 
organization with which the member has been or is affiliated.

``SEC. 499K. REPORT.

    ``The President shall prepare and transmit to the Committee on 
Foreign Relations of the Senate, the Committee on International 
Relations of the House of Representatives, 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. 499L. 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 2006 through 
2010.
    ``(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 et seq.) 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 of 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, nutrition, and housing;
                    ``(C) strengthening the rule of law through 
                improved efficiency and transparency in government 
                services and increasing civil society participation in 
                government; 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.--
                            ``(i) In general.--The Board of Executive 
                        Directors of the Bank shall appoint to serve on 
                        the technical review committee individuals with 
                        technical expertise with respect to the 
                        development of Latin America and the Caribbean.
                            ``(ii) Criteria for appointment.--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 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 once each year, 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.
            ``(5) Consultative committee.--
                    ``(A) In general.--Each country that receives 
                assistance under this section shall establish a 
                Consultative Committee to make recommendations 
                regarding how such assistance should be used to carry 
                out the policy set out in section 2(b) of the Social 
                Investment and Economic Development Fund for the 
                Americas Act of 2005.
                    ``(B) Membership.--A Consultative Committee should 
                include individuals from civil society organizations 
                that represent or have experience in the following:
                            ``(i) Marginalized populations.
                            ``(ii) Trade and small farmer unions.
                            ``(iii) Rural development and agrarian 
                        reform.
                            ``(iv) Microenterprise and grassroots 
                        development.
                            ``(v) Access to government social services.
                            ``(vi) Rule of law and government reform.
                    ``(C) Duties.--A Consultative Committee in a 
                country shall--
                            ``(i) make recommendations to the technical 
                        review committee established under paragraph 
                        (3) and appropriate country representative of 
                        the Bank on projects to receive assistance 
                        provided under this section that affect such 
                        country;
                            ``(ii) have access documents and other 
                        information related to project proposals and 
                        funding decisions that affect such country; and
                            ``(iii) develop and publish rules and 
                        procedures under which the Committee will carry 
                        out its duties.
                    ``(D) Conflicts of interest.--A member of a 
                Consultative Committee may not be permitted to review 
                an application submitted by an organization with which 
                the member has been or is affiliated.
    ``(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 $1,250,000,000 to the Fund.
    ``(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--
            (1) 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 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;
            (2) funds authorized to be appropriated to carry out this 
        Act or the amendments made by this Act should be in addition to 
        funds otherwise made available on an annual basis to countries 
        in the Americas pursuant to other United States foreign 
        assistance programs; and
            (3) it should be the policy of the United States to seek to 
        increase the amount of assistance provided to the countries of 
        the Americas from the United States and other members of the 
        Inter-American Development Bank for a fiscal year beginning 
        after the date of the enactment of this Act to an amount that 
        is more than such amount provided during fiscal years beginning 
        prior to such date.
                                 <all>
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