IV 
108TH CONGRESS 
2D SESSION 
H. RES. 863 
Recognizing the importance of local capacity building within developing 
countries to create sustainable, long-term international development. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 19, 2004 
Mr. FARR submitted the following resolution; which was referred to the 
Committee on International Relations 
RESOLUTION 
Recognizing the importance of local capacity building within 
developing countries to create sustainable, long-term 
international development. 
Whereas ‘‘local capacity building’’ means investing in the peo-
ple, institutions, and practices of developing countries to 
enable the countries to achieve and independently sustain 
development; 
Whereas local capacity building improves local and national 
government institutions by stimulating the involvement of 
the people in the development process and by encour-
aging democratic participation in local governmental ac-
tivities; 
Whereas local capacity building expands human resource po-
tential by transferring technical knowledge in such areas
•HRES 863 IH 
as agriculture, teacher education, and small business de-
velopment to people through education and training; 
Whereas a society is more likely to sustain development pro-
grams after foreign assistance is no longer available if 
the society is involved in, and has ownership of, the de-
velopment programs; 
Whereas foreign assistance that is focused on grassroots de-
velopment results in local capacity building, the empower-
ment of local peoples, and more effective development 
programs; 
Whereas according to the 2002 National Security Strategy of 
the United States, ‘‘Poverty does not make poor people 
into terrorists and murderers. Yet poverty, weak institu-
tions, and corruption can make weak states vulnerable to 
terrorist networks and drug cartels within their bor-
ders.’’; 
Whereas according to the United States Agency for Inter-
national Development (USAID), investment in the people 
of developing countries is essential to sustainable develop-
ment; 
Whereas according to the International Bank for Reconstruc-
tion and Development (IBRD), local capacity building 
must be a component of development assistance programs 
to effectively reduce poverty; 
Whereas programs funded by the IBRD are required to focus 
on creating and transmitting knowledge and capacity to 
the people of developing countries; 
Whereas according to section 102(b) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151–1(b)), United States 
assistance ‘‘shall be used in support of, rather than sub-
stitution for, the self-help efforts’’ of developing countries
•HRES 863 IH 
and ‘‘should focus on establishing and upgrading the in-
stitutional capacities of developing countries in order to 
promote long-term development’’; 
Whereas the Millennium Challenge Act of 2003 (22 U.S.C. 
7701 et seq.) established the Millennium Challenge Cor-
poration to provide United States assistance for inter-
national development ‘‘in a manner that promotes eco-
nomic growth and the elimination of extreme poverty and 
strengthens good governance, economic freedom, and in-
vestments in people.’’; 
Whereas according to both the Foreign Assistance Act of 
1961 and the Millennium Challenge Act of 2003, in-
creased local participation helps establish appropriate pri-
orities, increases local ownership, and results in sustain-
able development programs; and 
Whereas local capacity building in developing countries is es-
sential to reducing poverty, fostering entrepreneurial 
spirit, and creating economic sustainability: Now, there-
fore, be it 
Resolved, That the House of Representatives— 
(1) reaffirms the commitment of the United 
States to create and support development programs 
that promote local capacity building; 
(2) urges the Department of State, the United 
States 
Agency 
for 
International 
Development 
(USAID), and the Millennium Challenge Corpora-
tion to focus on the creation of development pro-
grams that increase recipient-country participation 
in the planning of programs, promote recipient-coun-
•HRES 863 IH 
try ownership of programs, and build local capacity 
within the recipient-country; and 
(3) recommends that the Millennium Challenge 
Corporation, when revising the indicators used in the 
selection of countries eligible to receive assistance 
from such Corporation, give special consideration 
and weight to the efforts and commitment of a coun-
try to build local capacity and increase local man-
agement and ownership of development programs. 
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