I
107TH CONGRESS
2D SESSION
H. R. 4209
To amend the Foreign Assistance Act of 1961 to reauthorize microenterprise
assistance programs under that Act and to expand sustainable poverty-
focused microenterprise programs under that Act by implementing im-
proved poverty measurement methods under those programs.
IN THE HOUSE OF REPRESENTATIVES
APRIL 11, 2002
Mr. ROEMER (for himself, Mr. HOUGHTON, Mr. GILMAN, Mr. BERMAN, Mr.
ACKERMAN, Ms. ROS-LEHTINEN, Mr. ROHRABACHER, Mr. MORAN of Vir-
ginia, Mr. MCDERMOTT, Mr. GREENWOOD, Mr. LUTHER, Mr. KIRK, Mr.
HALL of Ohio, Mr. DICKS, Mr. CARSON of Oklahoma, Mr. CONYERS,
Mrs. MEEK of Florida, Ms. ESHOO, Mrs. DAVIS of California, Mr. HORN,
Mr. ALLEN, Mr. MOORE, Ms. EDDIE BERNICE JOHNSON of Texas, Mr.
BISHOP, Ms. CARSON of Indiana, Mr. MCNULTY, Mr. FROST, Mr. PAS-
TOR, Ms. MILLENDER-MCDONALD, Mrs. MORELLA, Mr. PRICE of North
Carolina, Mr. LARSON of Connecticut, Mr. SABO, Mr. BOEHLERT, and
Mr. BRADY of Pennsylvania) introduced the following bill; which was re-
ferred to the Committee on International Relations
A BILL
To amend the Foreign Assistance Act of 1961 to reauthorize
microenterprise assistance programs under that Act and
to expand sustainable poverty-focused microenterprise
programs under that Act by implementing improved pov-
erty measurement methods under those programs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
inserting ‘‘obligated and expended in sup-
port of programs or services under which
50 percent or more of the clients are ini-
tially very poor’’; and
(ii) by adding at the end of the first
sentence before the period the following:
‘‘or as those living on the equivalent of less
than $1 per day (as determined by the
World Bank)’’; and
(B) in subparagraph (A)(i), by striking
‘‘entrepreneurs’’ and inserting ‘‘clients’’; and
(2) by adding at the end the following:
‘‘(6) POVERTY MEASUREMENT METHODS.—(A)
The Administrator of the United States Agency for
International Development shall, in consultation
with appropriate microfinance and microenterprise
institutions, develop methods to measure the level of
poverty of clients of sustainable poverty-focused
microenterpise programs under paragraph (1).
‘‘(B) In developing poverty measurement meth-
ods under subparagraph (A), the Administrator
shall—
‘‘(i) utilize cost-efficient sampling methods
as opposed to full census methods, using cri-
teria that correlate with characteristics of either
those individuals living in the bottom 50 per-
cent below the official poverty line (as estab-
lished by the national government of the coun-
try) or those individuals living on less than $1
per day (as determined by the World Bank), in-
cluding criteria such as the availability of the
basic necessities of life (including nutritious
food, climate-appropriate clothing and shelter,
and clean water);
‘‘(ii) utilize cost-efficient sampling methods
that are appropriate for application by micro-
finance and microenterprise institutions on an
annual basis; and
‘‘(iii) give priority to methods already in
use by practitioner institutions that meet the
criteria in clauses (i) and (ii), including meas-
ures of loan size.
‘‘(C) The Administrator—
‘‘(i) shall implement interim poverty meas-
urement methods in accordance with this
paragraph—
‘‘(I) with respect to not less than 25
sustainable poverty-focused programs by
September 30, 2002; and
‘‘(II) with respect to not less than 40
sustainable poverty-focused programs by
September 30, 2003; and
‘‘(ii) shall implement final poverty meas-
urement methods in accordance with this para-
graph not later than September 30, 2004.
‘‘(D) In carrying out subparagraph (C)(i), the
Administrator shall ensure that the programs de-
scribed in such subparagraph are equitably distrib-
uted among the various countries and regions of the
world.
‘‘(E) As of October 1, 2004, grant assistance to
a program or service under this subsection shall
qualify in whole or in part as targeted assistance to
the very poor under paragraph (3) if one of the ap-
proved final measurement methods verifies that at
least 50 percent of the clients of the program or
service are among the very poor as described in
paragraph (3).’’.
(b) REPORT.—Not later than July 1, 2004, the Ad-
ministrator of the United States Agency for International
Development shall submit to Congress a report that
contains—
(1)(A) a description of the interim poverty
measurement methods implemented in accordance
with section 131(b)(6)(C)(i) of the Foreign Assist-
ance Act of 1961, as added by subsection (a); and
(B) an analysis of the results of the application
of such poverty measurement methods to sustainable
poverty-focused programs under such section; and
(2) a description of the proposed final poverty
measurement methods to be implemented not later
than September 30, 2004, in accordance with section
131(b)(6)(C)(ii) of such Act.
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