(1) It is in the mutual economic interest of the
United States and peoples in developing and transi-
tional countries to promote cooperatives and credit
unions.
(2) Self-help institutions, including cooperatives
and credit unions, provide enhanced opportunities
for people to participate directly in democratic deci-
sion-making for their economic and social benefit
through ownership and control of business enter-
prises and through the mobilization of local capital
and savings and such organizations should be fully
utilized in fostering free market principles and the
adoption of self-help approaches to development.
(3) The United States seeks to encourage
broad-based economic and social development by cre-
ating and supporting—
(A) agricultural cooperatives that provide a
means to lift low income farmers and rural peo-
ple out of poverty and to better integrate them
into national economies;
(B) credit union networks that serve peo-
ple of limited means through safe savings and
by extending credit to families and microenter-
prises;
(C) electric and telephone cooperatives that
provide rural customers with power and tele-
communications services essential to economic
development;
(D) housing and community-based co-
operatives that provide low income shelter and
work opportunities for the urban poor; and
(E) mutual and cooperative insurance com-
panies that provide risk protection for life and
property to under-served populations often
through group policies.
SEC. 3. GENERAL PROVISIONS.
(a) DECLARATIONS OF POLICY.—The Congress sup-
ports the development and expansion of economic assist-
ance programs that fully utilize cooperatives and credit
unions, particularly those programs committed to—
(1) international cooperative principles, demo-
cratic governance and involvement of women and
ethnic minorities for economic and social develop-
ment;
(2) self-help mobilization of member savings
and equity, retention of profits in the community,
except those programs that are dependent on donor
financing;
(3) market-oriented and value-added activities
with the potential to reach large numbers of low in-
come people and help them enter into the main-
stream economy;
(4) strengthening the participation of rural and
urban poor to contribute to their country’s economic
development; and
(5) utilization of technical assistance and train-
ing to better serve the member-owners.
(b) DEVELOPMENT PRIORITIES.—Section 111 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151i) is
amended by adding at the end the following: ‘‘In meeting
the requirement of the preceding sentence, specific priority
shall be given to the following:
‘‘(1) AGRICULTURE.—Technical assistance to
low income farmers who form and develop member-
owned cooperatives for farm supplies, marketing and
value-added processing.
‘‘(2) FINANCIAL SYSTEMS.—The promotion of
national credit union systems through credit union-
to-credit union technical assistance that strengthens
the ability of low income people and micro-entre-
preneurs to save and to have access to credit for
their own economic advancement.
‘‘(3) INFRASTRUCTURE.—The establishment of
rural electric and telecommunication cooperatives for
universal access for rural people and villages that
lack reliable electric and telecommunications serv-
ices.
‘‘(4) HOUSING
AND
COMMUNITY
SERVICES.—
The promotion of community-based cooperatives
which provide employment opportunities and impor-
tant services such as health clinics, self-help shelter,
environmental improvements, group-owned busi-
nesses, and other activities.’’.
SEC. 4. REPORT.
Not later than 6 months after the date of enactment
of this Act, the Administrator of the United States Agency
for International Development, in consultation with the
heads of other appropriate agencies, shall prepare and
submit to Congress a report on the implementation of sec-
tion 111 of the Foreign Assistance Act of 1961 (22 U.S.C.
2151i), as amended by section 3 of this Act.
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