H. R. 1143
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
An Act
To establish a program to provide assistance for programs of credit and other
financial services for microenterprises in developing countries, 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 ‘‘Microenterprise for Self-Reliance
and International Anti-Corruption Act of 2000’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—MICROENTERPRISE FOR SELF-RELIANCE ACT OF 2000
Sec. 101. Short title.
Sec. 102. Findings and declarations of policy.
Sec. 103. Purposes.
Sec. 104. Definitions.
Sec. 105. Microenterprise development grant assistance.
Sec. 106. Micro- and small enterprise development credits.
Sec. 107. United States Microfinance Loan Facility.
Sec. 108. Report relating to future development of microenterprise institutions.
Sec. 109. United States Agency for International Development as global leader and
coordinator of bilateral and multilateral microenterprise assistance
activities.
Sec. 110. Sense of the Congress on consideration of Mexico as a key priority in
microenterprise funding allocations.
TITLE II—INTERNATIONAL ANTI-CORRUPTION AND GOOD GOVERNANCE
ACT OF 2000
Sec. 201. Short title.
Sec. 202. Findings and purpose.
Sec. 203. Development assistance policy.
Sec. 204. Department of the Treasury technical assistance program for developing
countries.
Sec. 205. Authorization of good governance programs.
TITLE III—INTERNATIONAL ACADEMIC OPPORTUNITY ACT OF 2000
Sec. 301. Short title.
Sec. 302. Statement of purpose.
Sec. 303. Establishment of grant program for foreign study by American college
students of limited financial means.
Sec. 304. Report to Congress.
Sec. 305. Authorization of appropriations.
Sec. 306. Effective date.
TITLE IV—MISCELLANEOUS PROVISIONS
Sec. 401. Support for Overseas Cooperative Development Act.
Sec. 402. Funding of certain environmental assistance activities of USAID.
H. R. 1143—2
Sec. 403. Processing of applications for transportation of humanitarian assistance
abroad by the Department of Defense.
Sec. 404. Working capital fund.
Sec. 405. Increase in authorized number of employees and representatives of the
United States mission to the United Nations provided living quarters in
New York.
Sec. 406. Availability of VOA and Radio Marti multilingual computer readable text
and voice recordings.
Sec. 407. Availability of certain materials of the Voice of America.
Sec. 408. Paul D. Coverdell Fellows Program Act of 2000.
TITLE I—MICROENTERPRISE FOR SELF-
RELIANCE ACT OF 2000
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Microenterprise for Self-Reliance
Act of 2000’’.
SEC. 102. FINDINGS AND DECLARATIONS OF POLICY.
Congress makes the following findings and declarations:
(1) According to the World Bank, more than 1,200,000,000
people in the developing world, or one-fifth of the world’s popu-
lation, subsist on less than $1 a day.
(2) Over 32,000 of their children die each day from largely
preventable malnutrition and disease.
(3)(A) Women in poverty generally have larger work loads
and less access to educational and economic opportunities than
their male counterparts.
(B) Directly aiding the poorest of the poor, especially
women, in the developing world has a positive effect not only
on family incomes, but also on child nutrition, health and
education, as women in particular reinvest income in their
families.
(4)(A) The poor in the developing world, particularly
women, generally lack stable employment and social safety
nets.
(B) Many turn to self-employment to generate a substantial
portion of their livelihood. In Africa, over 80 percent of employ-
ment is generated in the informal sector of the self-employed
poor.
(C) These poor entrepreneurs are often trapped in poverty
because they cannot obtain credit at reasonable rates to build
their asset base or expand their otherwise viable self-employ-
ment activities.
(D) Many of the poor are forced to pay interest rates
as high as 10 percent per day to money lenders.
(5)(A) The poor are able to expand their incomes and their
businesses dramatically when they can access loans at reason-
able interest rates.
(B) Through the development of self-sustaining micro-
finance programs, poor people themselves can lead the fight
against hunger and poverty.
(6)(A) On February 2–4, 1997, a global Microcredit Summit
was held in Washington, District of Columbia, to launch a
plan to expand access to credit for self-employment and other
financial and business services to 100,000,000 of the world’s
poorest families, especially the women of those families, by
2005. While this scale of outreach may not be achievable in
H. R. 1143—3
this short time-period, the realization of this goal could dramati-
cally alter the face of global poverty.
(B) With an average family size of five, achieving this
goal will mean that the benefits of microfinance will thereby
reach nearly half of the world’s more than 1,000,000,000
absolute poor people.
(7)(A) Nongovernmental organizations, such as those that
comprise the Microenterprise Coalition (such as the Grameen
Bank (Bangladesh), K–REP (Kenya), and networks such as
Accion International, the Foundation for International Commu-
nity Assistance (FINCA), and the credit union movement) are
successful in lending directly to the very poor.
(B) Microfinance institutions such as BRAC (Bangladesh),
BancoSol (Bolivia), SEWA Bank (India), and ACEP (Senegal)
are regulated financial institutions that can raise funds directly
from the local and international capital markets.
(8)(A) Microenterprise institutions not only reduce poverty,
but also reduce the dependency on foreign assistance.
(B) Interest income on the credit portfolio is used to pay
recurring institutional costs, assuring the long-term sustain-
ability of development assistance.
(9) Microfinance institutions leverage foreign assistance
resources because loans are recycled, generating new benefits
to program participants.
(10)(A) The development of sustainable microfinance
institutions that provide credit and training, and mobilize
domestic savings, is a critical component to a global strategy
of poverty reduction and broad-based economic development.
(B) In the efforts of the United States to lead the develop-
ment of a new global financial architecture, microenterprise
should play a vital role. The recent shocks to international
financial markets demonstrate how the financial sector can
shape the destiny of nations. Microfinance can serve as a power-
ful tool for building a more inclusive financial sector which
serves the broad majority of the world’s population including
the very poor and women and thus generate more social sta-
bility and prosperity.
(C) Over the last two decades, the United States has been
a global leader in promoting the global microenterprise sector,
primarily through its development assistance programs at the
United States Agency for International Development. Addition-
ally, the Department of the Treasury and the Department
of State have used their authority to promote microenterprise
in the development programs of international financial institu-
tions and the United Nations.
(11)(A) In 1994, the United States Agency for International
Development launched the ‘‘Microenterprise Initiative’’ in part-
nership with the Congress.
(B) The initiative committed to expanding funding for the
microenterprise programs of the Agency, and set a goal that,
by the end of fiscal year 1996, one-half of all microenterprise
resources would support programs and institutions that provide
credit to the poorest, with loans under $300.
(C) In order to achieve the goal of the microcredit summit,
increased investment in microfinance institutions serving the
poorest will be critical.
H. R. 1143—4
(12) Providing the United States share of the global invest-
ment needed to achieve the goal of the microcredit summit
will require only a small increase in United States funding
for international microcredit programs, with an increased focus
on institutions serving the poorest.
(13)(A) In order to reach tens of millions of the poorest
with microcredit, it is crucial to expand and replicate successful
microfinance institutions.
(B) These institutions need assistance in developing their
institutional capacity to expand their services and tap commer-
cial sources of capital.
(14) Nongovernmental organizations have demonstrated
competence in developing networks of local microfinance institu-
tions and other assistance delivery mechanisms so that they
reach large numbers of the very poor, and achieve financial
sustainability.
(15) Recognizing that the United States Agency for Inter-
national Development has developed very effective partnerships
with nongovernmental organizations, and that the Agency will
have fewer missions overseas to carry out its work, the Agency
should place priority on investing in those nongovernmental
network institutions that meet performance criteria through
the central funding mechanisms of the Agency.
(16) By expanding and replicating successful microfinance
institutions, it should be possible to create a global infrastruc-
ture to provide financial services to the world’s poorest families.
(17)(A) The United States can provide leadership to other
bilateral and multilateral development agencies as such agen-
cies expand their support to the microenterprise sector.
(B) The United States should seek to improve coordination
among G–7 countries in the support of the microenterprise
sector in order to leverage the investment of the United States
with that of other donor nations.
(18) Through increased support for microenterprise, espe-
cially credit for the poorest, the United States can continue
to play a leadership role in the global effort to expand financial
services and opportunity to 100,000,000 of the poorest families
on the planet.
SEC. 103. PURPOSES.
The purposes of this title are—
(1) to make microenterprise development an important ele-
ment of United States foreign economic policy and assistance;
(2) to provide for the continuation and expansion of the
commitment of the United States Agency for International
Development to the development of microenterprise institutions
as outlined in its 1994 Microenterprise Initiative;
(3) to support and develop the capacity of United States
and indigenous nongovernmental organization intermediaries
to provide credit, savings, training, technical assistance, and
business development services to microentrepreneurs;
(4) to emphasize financial services and substantially
increase the amount of assistance devoted to both financial
services and complementary business development services
designed to reach the poorest people in developing countries,
particularly women; and
H. R. 1143—5
(5) to encourage the United States Agency for International
Development to coordinate microfinance policy, in consultation
with the Department of the Treasury and the Department
of State, and to provide global leadership among bilateral and
multilateral donors in promoting microenterprise for the poorest
of the poor.
SEC. 104. DEFINITIONS.
In this title:
(1) BUSINESS DEVELOPMENT SERVICES.—The term ‘‘business
development services’’ means support for the growth of micro-
enterprises through training, technical assistance, marketing
assistance, improved production technologies, and other serv-
ices.
(2) MICROENTERPRISE INSTITUTION.—The term ‘‘microenter-
prise institution’’ means an institution that provides services,
including microfinance, training, or business development serv-
ices, for microentrepreneurs.
(3) MICROFINANCE INSTITUTION.—The term ‘‘microfinance
institution’’ means an institution that directly provides, or
works to expand, the availability of credit, savings, and other
financial services to microentrepreneurs.
(4) PRACTITIONER
INSTITUTION.—The term ‘‘practitioner
institution’’ means any institution that provides services,
including microfinance, training, or business development serv-
ices, for microentrepreneurs, or provides assistance to micro-
enterprise institutions.
SEC. 105. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.
Chapter 1 of 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 new section:
‘‘SEC. 131. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.
‘‘(a) FINDINGS AND POLICY.—Congress finds and declares that—
‘‘(1) the development of microenterprise is a vital factor
in the stable growth of developing countries and in the develop-
ment of free, open, and equitable international economic sys-
tems;
‘‘(2) it is therefore in the best interest of the United States
to assist the development of microenterprises in developing
countries; and
‘‘(3) the support of microenterprise can be served by pro-
grams providing credit, savings, training, technical assistance,
and business development services.
‘‘(b) AUTHORIZATION.—
‘‘(1) IN GENERAL.—In carrying out this part, the President
is authorized to provide grant assistance for programs to
increase the availability of credit and other services to micro-
enterprises lacking full access to capital training, technical
assistance, and business development services, through—
‘‘(A) grants to microfinance institutions for the purpose
of expanding the availability of credit, savings, and other
financial services to microentrepreneurs;
‘‘(B) grants to microenterprise institutions for the pur-
pose of training, technical assistance, and business develop-
ment services for microenterprises to enable them to make
H. R. 1143—6
better use of credit, to better manage their enterprises,
and to increase their income and build their assets;
‘‘(C) capacity-building for microenterprise institutions
in order to enable them to better meet the credit and
training needs of microentrepreneurs; and
‘‘(D) policy and regulatory programs at the country
level that improve the environment for microentrepreneurs
and microenterprise institutions that serve the poor and
very poor.
‘‘(2) IMPLEMENTATION.—Assistance authorized under para-
graph (1)(A) and (B) shall be provided through organizations
that have a capacity to develop and implement microenterprise
programs, including particularly—
‘‘(A) United States and indigenous private and vol-
untary organizations;
‘‘(B) United States and indigenous credit unions and
cooperative organizations; or
‘‘(C) other indigenous governmental and nongovern-
mental organizations.
‘‘(3) TARGETED ASSISTANCE.—In carrying out sustainable
poverty-focused programs under paragraph (1), 50 percent of
all microenterprise resources shall be targeted to very poor
entrepreneurs, defined as those living in the bottom 50 percent
below the poverty line as established by the national govern-
ment of the country. Specifically, such resources shall be used
for—
‘‘(A) direct support of programs under this subsection
through practitioner institutions that—
‘‘(i) provide credit and other financial services to
entrepreneurs who are very poor, with loans in 1995
United States dollars of—
‘‘(I) $1,000 or less in the Europe and Eurasia
region;
‘‘(II) $400 or less in the Latin America region;
and
‘‘(III) $300 or less in the rest of the world;
and
‘‘(ii) can cover their costs in a reasonable time
period; or
‘‘(B) demand-driven business development programs
that achieve reasonable cost recovery that are provided
to clients holding poverty loans (as defined by the regional
poverty loan limitations in subparagraph (A)(i)), whether
they are provided by microfinance institutions or by special-
ized business development services providers.
‘‘(4) SUPPORT FOR CENTRAL MECHANISMS.—The President
should continue support for central mechanisms and missions,
as appropriate, that—
‘‘(A) provide technical support for field missions;
‘‘(B) strengthen the institutional development of the
intermediary organizations described in paragraph (2);
‘‘(C) share information relating to the provision of
assistance authorized under paragraph (1) between such
field missions and intermediary organizations; and
‘‘(D) support the development of nonprofit global micro-
finance networks, including credit union systems, that—
H. R. 1143—7
‘‘(i) are able to deliver very small loans through
a significant grassroots infrastructure based on market
principles; and
‘‘(ii) act as wholesale intermediaries providing a
range of services to microfinance retail institutions,
including financing, technical assistance, capacity-
building, and safety and soundness accreditation.
‘‘(5) LIMITATION.—Assistance provided under this sub-
section may only be used to support microenterprise programs
and may not be used to support programs not directly related
to the purposes described in paragraph (1).
‘‘(c) MONITORING SYSTEM.—In order to maximize the sustain-
able development impact of the assistance authorized under sub-
section (b)(1), the Administrator of the agency primarily responsible
for administering this part shall establish a monitoring system
that—
‘‘(1) establishes performance goals for such assistance and
expresses such goals in an objective and quantifiable form,
to the extent feasible;
‘‘(2) establishes performance indicators to be used in meas-
uring or assessing the achievement of the goals and objectives
of such assistance;
‘‘(3) provides a basis for recommendations for adjustments
to such assistance to enhance the sustainable development
impact of such assistance, particularly the impact of such assist-
ance on the very poor, particularly poor women; and
‘‘(4) provides a basis for recommendations for adjustments
to measures for reaching the poorest of the poor, including
proposed legislation containing amendments to enhance the
sustainable development impact of such assistance, as described
in paragraph (3).
‘‘(d) LEVEL OF ASSISTANCE.—Of the funds made available under
this part, the FREEDOM Support Act, and the Support for East
European Democracy (SEED) Act of 1989, including local currencies
derived from such funds, there are authorized to be available
$155,000,000 for each of the fiscal years 2001 and 2002, to carry
out this section.
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) BUSINESS DEVELOPMENT SERVICES.—The term ‘business
development services’ means support for the growth of micro-
enterprises through training, technical assistance, marketing
assistance, improved production technologies, and other serv-
ices.
‘‘(2) MICROENTERPRISE INSTITUTION.—The term ‘microenter-
prise institution’ means an institution that provides services,
including microfinance, training, or business development serv-
ices, for microentrepreneurs.
‘‘(3) MICROFINANCE INSTITUTION.—The term ‘microfinance
institution’ means an institution that directly provides, or works
to expand, the availability of credit, savings, and other financial
services to microentrepreneurs.
‘‘(4) PRACTITIONER
INSTITUTION.—The term ‘practitioner
institution’ means any institution that provides services,
including microfinance, training, or business development serv-
ices, for microentrepreneurs, or provides assistance to micro-
enterprise institutions.’’.
H. R. 1143—8
SEC. 106. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.
Section 108 of the Foreign Assistance Act of 1961 (22 U.S.C.
2151f ) is amended to read as follows:
‘‘SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.
‘‘(a) FINDINGS AND POLICY.—Congress finds and declares that—
‘‘(1) the development of micro- and small enterprises is
a vital factor in the stable growth of developing countries
and in the development and stability of a free, open, and
equitable international economic system; and
‘‘(2) it is, therefore, in the best interests of the United
States to assist the development of the enterprises of the poor
in developing countries and to engage the United States private
sector in that process.
‘‘(b) PROGRAM.—To carry out the policy set forth in subsection
(a), the President is authorized to provide assistance to increase
the availability of credit to micro- and small enterprises lacking
full access to credit, including through—
‘‘(1) loans and guarantees to credit institutions for the
purpose of expanding the availability of credit to micro- and
small enterprises;
‘‘(2) training programs for lenders in order to enable them
to better meet the credit needs of microentrepreneurs; and
‘‘(3) training programs for microentrepreneurs in order to
enable them to make better use of credit and to better manage
their enterprises.
‘‘(c) ELIGIBILITY CRITERIA.—The Administrator of the agency
primarily responsible for administering this part shall establish
criteria for determining which credit institutions described in sub-
section (b)(1) are eligible to carry out activities, with respect to
micro- and small enterprises, assisted under this section. Such
criteria may include the following:
‘‘(1) The extent to which the recipients of credit from the
entity do not have access to the local formal financial sector.
‘‘(2) The extent to which the recipients of credit from the
entity are among the poorest people in the country.
‘‘(3) The extent to which the entity is oriented toward
working directly with poor women.
‘‘(4) The extent to which the entity recovers its cost of
lending.
‘‘(5) The extent to which the entity implements a plan
to become financially sustainable.
‘‘(d) ADDITIONAL REQUIREMENT.—Assistance provided under
this section may only be used to support micro- and small enterprise
programs and may not be used to support programs not directly
related to the purposes described in subsection (b).
‘‘(e) PROCUREMENT PROVISION.—Assistance may be provided
under this section without regard to section 604(a).
‘‘(f ) AVAILABILITY OF FUNDS.—
‘‘(1) IN GENERAL.—Of the amounts authorized to be avail-
able to carry out section 131, there are authorized to be avail-
able $1,500,000 for each of fiscal years 2001 and 2002 to carry
out this section.
‘‘(2) COVERAGE
OF
SUBSIDY
COSTS.—Amounts authorized
to be available under paragraph (1) shall be made available
to cover the subsidy cost, as defined in section 502(5) of the
H. R. 1143—9
Federal Credit Reform Act of 1990, for activities under this
section.’’.
SEC. 107. UNITED STATES MICROFINANCE LOAN FACILITY.
(a) IN GENERAL.—Chapter 1 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.), as amended by section 105
of this Act, is further amended by adding at the end the following
new section:
‘‘SEC. 132. UNITED STATES MICROFINANCE LOAN FACILITY.
‘‘(a) ESTABLISHMENT.—The Administrator is authorized to
establish a United States Microfinance Loan Facility (in this section
referred to as the ‘Facility’) to pool and manage the risk from
natural disasters, war or civil conflict, national financial crisis,
or short-term financial movements that threaten the long-term
development of United States-supported microfinance institutions.
‘‘(b) DISBURSEMENTS.—
‘‘(1) IN GENERAL.—The Administrator shall make disburse-
ments from the Facility to United States-supported micro-
finance institutions to prevent the bankruptcy of such institu-
tions caused by—
‘‘(A) natural disasters;
‘‘(B) national wars or civil conflict; or
‘‘(C) national financial crisis or other short-term finan-
cial movements that threaten the long-term development
of United States-supported microfinance institutions.
‘‘(2) FORM OF ASSISTANCE.—Assistance under this section
shall be in the form of loans or loan guarantees for microfinance
institutions that demonstrate the capacity to resume self-sus-
tained operations within a reasonable time period.
‘‘(3) CONGRESSIONAL
NOTIFICATION
PROCEDURES.—During
each of the fiscal years 2001 and 2002, funds may not be
made available from the Facility until 15 days after notification
of the proposed availability of the funds has been provided
to the congressional committees specified in section 634A in
accordance with the procedures applicable to reprogramming
notifications under that section.
‘‘(c) GENERAL PROVISIONS.—
‘‘(1) POLICY PROVISIONS.—In providing the credit assistance
authorized by this section, the Administrator should apply,
as appropriate, the policy provisions in this part that are
applicable to development assistance activities.
‘‘(2) DEFAULT AND PROCUREMENT PROVISIONS.—
‘‘(A) DEFAULT
PROVISION.—The provisions of section
620(q), or any comparable provision of law, shall not be
construed to prohibit assistance to a country in the event
that a private sector recipient of assistance furnished under
this section is in default in its payment to the United
States for the period specified in such section.
‘‘(B) PROCUREMENT PROVISION.—Assistance may be pro-
vided under this section without regard to section 604(a).
‘‘(3) TERMS AND CONDITIONS OF CREDIT ASSISTANCE.—
‘‘(A) IN GENERAL.—Credit assistance provided under
this section shall be offered on such terms and conditions,
including fees charged, as the Administrator may deter-
mine.
‘‘(B) 
LIMITATION
ON
PRINCIPAL
AMOUNT
OF
FINANCING.—The principal amount of loans made or
H. R. 1143—10
guaranteed under this section in any fiscal year, with
respect to any single event, may not exceed $30,000,000.
‘‘(C) EXCEPTION.—No payment may be made under
any guarantee issued under this section for any loss arising
out of fraud or misrepresentation for which the party
seeking payment is responsible.
‘‘(4) FULL FAITH AND CREDIT.—All guarantees issued under
this section shall constitute obligations, in accordance with
the terms of such guarantees, of the United States of America,
and the full faith and credit of the United States of America
is hereby pledged for the full payment and performance of
such obligations to the extent of the guarantee.
‘‘(d) FUNDING.—
‘‘(1) ALLOCATION OF FUNDS.—Of the amounts made avail-
able to carry out this part for the fiscal year 2001, up to
$5,000,000 may be made available for—
‘‘(A) the subsidy cost, as defined in section 502(5) of
the Federal Credit Reform Act of 1990, to carry out this
section; and
‘‘(B) the administrative costs to carry out this section.
‘‘(2) RELATION TO OTHER FUNDING.—Amounts made avail-
able under paragraph (1) are in addition to amounts available
under any other provision of law to carry out this section.
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the
Administrator of the agency primarily responsible for admin-
istering this part.
‘‘(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term
‘appropriate congressional committees’ means the Committee
on Foreign Relations of the Senate and the Committee on
International Relations of the House of Representatives.
‘‘(3) UNITED
STATES-SUPPORTED
MICROFINANCE
INSTITU-
TION.—The term ‘United States-supported microfinance institu-
tion’ means a financial intermediary that has received funds
made available under part I of this Act for fiscal year 1980
or any subsequent fiscal year.’’.
(b) REPORT.—Not later than 120 days after the date of the
enactment of this Act, the Administrator of the United States
Agency for International Development shall submit to the Com-
mittee on Foreign Relations of the Senate and the Committee
on International Relations of the House of Representatives a report
on the policies, rules, and regulations of the United States Micro-
finance Loan Facility established under section 132 of the Foreign
Assistance Act of 1961, as added by subsection (a).
SEC. 108. REPORT RELATING TO FUTURE DEVELOPMENT OF MICRO-
ENTERPRISE INSTITUTIONS.
(a) REPORT.—Not later than 180 days after the date of the
enactment of this Act, the President shall submit to the appropriate
congressional committees a report on the most cost-effective
methods and measurements for increasing the access of poor people
overseas to credit, other financial services, and related training.
(b) CONTENTS.—The report described in subsection (a)—
(1) shall include how the President, in consultation with
the Administrator of the United States Agency for International
Development, the Secretary of State, and the Secretary of the
Treasury, will develop a comprehensive strategy for advancing