SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Social Investment and Economic Development for the 
Americas Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Amendment to Foreign Assistance Act of 1961. 
Sec. 4. Amendment to the Inter-American Development Bank Act. 
Sec. 5. Sense of Congress. 
Sec. 6. Payment of arrears owed by United States to the Multilateral Invest-
ment Fund. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) It is in the national interest and national 
security interest of the United States to help foster 
security and stability in Latin America and the Car-
ibbean. 
(2) Over the past 25 years, there has been tre-
mendous progress on democracy and economic 
growth in the Western Hemisphere, and the hemi-
sphere is now a region dominated by democracies 
and democratic values. 
(3) The United States contributes, on average, 
$820,000,000 in bilateral development assistance to 
Latin America and the Caribbean each year and has 
continued to strengthen its commitment to pro-
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moting our shared values, heritage, and culture 
while confronting the common challenges we face. 
(4) The United States has also contributed 
through the Millennium Challenge Account more 
than $269,000,000 in development assistance to 
countries in the region that have demonstrated a 
commitment to just and democratic governance, eco-
nomic freedom, and investing in their people. 
(5) Poverty and inequality remain historic and 
persistent problems in the region, which undermine 
progress on social and economic development. These 
problems contribute to the rise of populist ideas and 
add to inequality. The poverty rate in Latin America 
is almost 40 percent, with little significant change 
since the 1980s, and Latin America remains the re-
gion with the most unequal distribution of wealth in 
the world. 
(6) The region must also face the challenges of 
staggering crime rates, weak judicial systems, and 
inadequate housing, health care, and educational 
systems. 
(7) By expanding the middle class through pro-
moting microenterprise, improving the investment 
climate, and creating a competitive workforce in 
Latin America and the Caribbean, the United States 
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will be able to help respective governments improve 
economic development in the region, and the coun-
tries of the region will become stronger trading part-
ners with the United States. 
(8) Working in partnership with the countries 
of the region, the United States can play a positive 
role in addressing these challenges. 
(9) As President George W. Bush said on 
March 5, 2007, ‘‘The working poor of Latin Amer-
ica need change, and the United States of America 
is committed to that change. It is in our national in-
terests, it is in the interest of the United States of 
America to help the people in democracies in our 
neighborhood succeed. When our neighbors are pros-
perous and peaceful, it means better opportunities 
and more security for our own people. When there 
are jobs in our neighborhood, people are able to find 
work at home and not have to migrate to our coun-
try. When millions are free from poverty, societies 
are stronger and more hopeful.’’ 
(10) In order to effect significant reduction of 
poverty and enhance sustainable development, the 
United States must continue to make a long-term 
commitment of significant resources to programs 
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that impact on housing, health care, and educational 
systems. 
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 new chapter: 
‘‘CHAPTER 13—SOCIAL INVESTMENT AND 
ECONOMIC DEVELOPMENT FOR THE 
AMERICAS 
‘‘SEC. 499H. AUTHORIZATION OF ASSISTANCE. 
‘‘(a) ASSISTANCE.—The President, acting through 
the Administrator of the United States Agency for Inter-
national Development and working with foreign govern-
ments and civil society, shall provide increased and sus-
tained assistance to reduce poverty, expand the middle 
class, and foster increased economic opportunity in the 
countries of the Western Hemisphere by helping to— 
‘‘(1) improve the quality of life and invest in 
human capital, specifically by promoting education, 
improving health and disease prevention, and in-
creasing the access to and quality of housing; 
‘‘(2) reduce crime, particularly violent crime, in-
cluding murder, kidnapping, gang violence, and vio-
lence against women; 
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‘‘(3) generate rural development and reduce 
poverty in the agricultural and non-agricultural 
rural sector; 
‘‘(4) strengthen the rule of law, governance, 
and democracy through the establishment of inde-
pendent judiciaries, efficient processes to adjudicate 
claims, and trusted law enforcement bodies; and 
‘‘(5) reduce poverty and eliminate the exclusion 
of marginalized populations, including indigenous 
groups, people of African descent, women, rural and 
urban poor, and people with disabilities. 
‘‘(b) CONTRIBUTION
REQUIREMENT.—To receive 
United States assistance under this chapter, a recipient 
country must contribute at least 10 percent of the total 
value of the funds the United States provides for projects 
in the recipient country. Such contribution is in addition 
to the funds such country regularly provides for these 
types of programs. Additional contributions may be re-
quired at the discretion of the Administrator of the United 
States Agency for International Development. 
‘‘(c) INELIGIBILITY TO RECEIVE ASSISTANCE.—The 
President shall be prohibited from providing assistance 
under this section to the government of a country that 
is ineligible to receive assistance under section 620, this 
part, or chapter 4 of part II. 
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‘‘(d) TERMS
AND CONDITIONS.—Assistance under 
this chapter may be provided on such other terms and con-
ditions as the President may determine. 
‘‘(e) COORDINATION WITH OTHER FEDERAL AGEN-
CIES.—The Administrator of the United States Agency for 
International Development shall coordinate with the heads 
of other Federal departments and agencies as necessary 
to carry out subsection (a). 
‘‘SEC. 499I. WESTERN HEMISPHERE ECONOMIC INVEST-
MENT AND DEVELOPMENT ADVISORY COM-
MITTEE. 
‘‘(a) IN GENERAL.—There is established within the 
United States Agency for International Development an 
advisory committee to be known as the Western Hemi-
sphere Economic Investment and Development Advisory 
Committee (hereafter in this chapter referred to as the 
‘Advisory Committee’). The Advisory Committee shall 
serve as a link among the United States Government, non-
governmental organizations, the private sector, and other 
interested parties and review projects funded under this 
Act. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) IN
GENERAL.—The Advisory Committee 
shall be composed of 6 members, of whom— 
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‘‘(A) 1 member, who shall act as co-chair-
person, shall be appointed by the President; 
‘‘(B) 1 member, who shall act as co-chair-
person, shall be appointed by— 
‘‘(i) the majority leader of the Senate, 
in consultation with the senior member of 
the leadership of the House of Representa-
tives belonging to the same political party 
as the majority leader of the Senate, if the 
majority leader of the Senate does not be-
long to the same political party as the 
President; or 
‘‘(ii) the minority leader of the Sen-
ate, in consultation with the senior mem-
ber of the leadership of the House of Rep-
resentatives belonging to the same political 
party as the minority leader of the Senate, 
if the majority leader of the Senate belongs 
to the same political party as the Presi-
dent; 
‘‘(C) 1 member shall be appointed by the 
majority leader of the Senate; 
‘‘(D) 1 member shall be appointed by the 
minority leader of the Senate; 
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‘‘(E) 1 member shall be appointed by the 
Speaker of the House of Representatives; and 
‘‘(F) 1 member shall be appointed by the 
minority leader of the House of Representa-
tives. 
‘‘(2) QUALIFICATIONS.—Each member of the 
Advisory Committee shall be— 
‘‘(A) an individual with technical expertise 
with respect to the development of Latin Amer-
ica or the Caribbean; or 
‘‘(B) a citizen of the United States with— 
‘‘(i) regional experience related to de-
velopment in Latin America or the Carib-
bean; 
‘‘(ii) technical or functional experience 
with respect to development issues; or 
‘‘(iii) extensive expertise in small busi-
ness issues or international business expe-
rience in Latin America or the Caribbean. 
‘‘(c) DUTIES.—The Advisory Committee shall— 
‘‘(1) consult with, provide information to, and 
advise the United States Agency for International 
Development and other United States Government 
agencies, as appropriate, on, and work closely with 
the United States Agency for International Develop-
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ment Regional Director, the Assistant Secretary for 
Western Hemisphere Affairs of the Department of 
State, and the United States Executive Director of 
the Inter-American Development Bank on matters 
related to this chapter; 
‘‘(2) meet at least twice annually and at other 
times as necessary; 
‘‘(3) serve as a liaison with, and provide infor-
mation and counsel to, the private sector and non-
governmental organizations in relation to the 
projects covered under this chapter; and 
‘‘(4) review all impact evaluations on projects 
proposed for funding using assistance provided 
under section 499H(a) and make recommendations 
and submit a written report to the Administrator of 
the United States Agency for International Develop-
ment with respect to the effectiveness of the projects 
and future changes to the program. 
‘‘(d) CONFLICTS OF INTEREST.—A member of the 
Advisory Committee shall not be permitted to review an 
application submitted by an organization with which the 
member has been or is affiliated or in which the member 
has had a financial interest. 
‘‘(e) STAFF
AND TRAVEL.—Using funds appro-
priated pursuant to the authorization of appropriations 
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under section 499L, the Advisory Committee may estab-
lish and maintain a staff of no more than 2 persons to 
provide administrative support and may maintain a budg-
et for travel expenses. 
‘‘SEC. 499J. EVALUATION. 
‘‘(a) IN GENERAL.—The Administrator of the United 
States Agency for International Development shall ensure 
that projects carried out under this chapter are subject 
to rigorous, independent impact evaluations at the original 
design stage and conclusion of the projects to determine 
if they are helping to reduce poverty and foster social and 
economic development in the countries of the Western 
Hemisphere. When possible, such evaluations shall be con-
ducted in coordination with evaluations of similar projects 
funded by other donors in order to expand the evidence 
base for decision-making. 
‘‘(b) USE OF EVALUATIONS.—The Advisory Com-
mittee shall use information from the evaluations con-
ducted under subsection (a) to inform future project deci-
sions. 
‘‘SEC. 499K. REPORT. 
‘‘Not later than 1 year after the date of the enact-
ment of the Social Investment and Economic Development 
for the Americas Act of 2007, and annually thereafter, 
the President shall prepare and submit to Congress a re-
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‘‘(8) $150,000,000 for fiscal year 2015. 
‘‘(9) $150,000,000 for fiscal year 2016. 
‘‘(10) $150,000,000 for fiscal year 2017. 
‘‘(b) ADDITIONAL AUTHORITIES.—Amounts appro-
priated pursuant to subsection (a)— 
‘‘(1) are authorized to remain available until ex-
pended; 
‘‘(2) are in addition to amounts otherwise avail-
able for such purposes; and 
‘‘(3) may be used to fund staff and travel ex-
penses of the Advisory Committee. 
‘‘(c) FUNDING LIMITATION.—Not more than 7 per-
cent of the amounts appropriated pursuant to subsection 
(a) for a fiscal year may be used for administrative ex-
penses.’’. 
SEC. 4. AMENDMENT TO THE INTER-AMERICAN DEVELOP-
MENT BANK ACT. 
The Inter-American Development Bank Act (22 
U.S.C. 283 et seq.) is amended by adding at the end the 
following new section: 
‘‘SEC. 39. SOCIAL INVESTMENT AND ECONOMIC DEVELOP-
MENT FUND FOR THE AMERICAS. 
‘‘(a) IN GENERAL.—The Secretary of the Treasury 
shall instruct the United States Executive Director at the 
Bank to use the voice, vote, and influence of the United 
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States to urge the Bank to establish an account to be 
known as the ‘Social Investment and Economic Develop-
ment 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 con-
sistent with subsection (d). The United States Governor 
of the Bank may vote for a resolution transmitted by the 
Board of Executive Directors which provides for the estab-
lishment of such an account, and the operation and admin-
istration of the account consistent with subsection (d). 
‘‘(b) OTHER CONTRIBUTIONS.—The Fund may ac-
cept funds from other member countries of the Bank, pri-
vate entities in the United States and in other member 
countries of the Bank, and countries in Latin America and 
the Caribbean. 
‘‘(c) MATCHING REQUIREMENT.—No funds may be 
expended from the Fund until the total amount contrib-
uted by the United States in the first year of operation 
of the Fund has been matched. 
‘‘(d) CONTRIBUTION REQUIREMENT.—To receive as-
sistance under this section, a recipient country must con-
tribute at least 10 percent of the total value of the funds 
the Fund provides for projects in the recipient country. 
Such contribution is in addition to the funds such country 
regularly provides for these types of programs. Additional 
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contributions may be required at the discretion of the 
Board of Governors of the Bank. 
‘‘(e) USE OF FUNDS.—The Fund shall be used to 
provide assistance to reduce poverty, expand the size of 
the middle class, and foster increased economic oppor-
tunity in the countries of the Western Hemisphere by 
helping to— 
‘‘(1) nurture public private partnerships and 
microenterprise development; 
‘‘(2) reduce the time and cost of starting a 
business and increase access to credit for small- and 
medium-sized businesses; 
‘‘(3) leverage personal remittances and reduce 
the cost of remittances sent to Latin America and 
the Caribbean, for the purpose of advancing eco-
nomic and social development by— 
‘‘(A) increasing access to financial institu-
tions for the poor, and working with local finan-
cial institutions to reduce fees and other costs 
associated with sending or receiving remit-
tances; 
‘‘(B) working with local financial institu-
tions to develop programs whereby personal re-
mittances can be used as the basis for credit for 
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mortgages and loans for small business, micro-
enterprises, housing, and other enterprises; 
‘‘(C) providing matching funds for private 
entities in the United States that send dona-
tions for development projects in Latin America 
and the Caribbean; and 
‘‘(D) fostering enabling environments for 
partnerships between civil society and local au-
thorities that lead to greater accountability and 
improved processes for establishing priorities 
for remittances, including income-generating 
and wealth-building activities; 
‘‘(4) in conjunction with changes implemented 
by recipient countries, improve the investment cli-
mate in individual countries by strengthening the 
rule of law and implementing judicial reforms to in-
crease transparency and predictability in judicial, 
tax, and regulatory systems; 
‘‘(5) increase workforce competitiveness in the 
global economy, specifically by focusing on applica-
tion of technology and workforce training and devel-
opment; and 
‘‘(6) reduce poverty and eliminate the exclusion 
of marginalized populations, including indigenous 
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groups, people of African descent, women, rural and 
urban poor, and people with disabilities. 
‘‘(f) INELIGIBILITY TO RECEIVE ASSISTANCE.—The 
President shall be prohibited from providing assistance 
under this section to the government of a country that 
is ineligible to receive assistance under section 620, part 
I, or chapter 4 of part II of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151 et seq.). 
‘‘(g) TERMS
AND CONDITIONS.—Assistance under 
this section may be provided on such other terms and con-
ditions as the President may determine. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) CONTRIBUTIONS.—There are authorized to 
be appropriated to the Secretary of the Treasury for 
United States contributions to the Fund for the pur-
pose of carrying out this section the following 
amounts: 
‘‘(A) $50,000,000 for fiscal year 2008. 
‘‘(B) $75,000,000 for fiscal year 2009. 
‘‘(C) $100,000,000 for fiscal year 2010. 
‘‘(D) $125,000,000 for fiscal year 2011. 
‘‘(E) $150,000,000 for fiscal year 2012. 
‘‘(F) $150,000,000 for fiscal year 2013. 
‘‘(G) $150,000,000 for fiscal year 2014. 
‘‘(H) $150,000,000 for fiscal year 2015. 
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‘‘(I) $150,000,000 for fiscal year 2016. 
‘‘(J) $150,000,000 for fiscal year 2017. 
‘‘(2) ADDITIONAL AUTHORITIES.—Amounts ap-
propriated 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 ad-
ministrative expenses.’’. 
SEC. 5. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) the amounts authorized to be appropriated 
to carry out this Act and the amendments made by 
this Act should be used to help countries in Latin 
America and the Caribbean focus on improving indi-
cators in the area of investing in people, as that 
term is used in section 607(b)(3) of the Millennium 
Challenge Act of 2003 (22 U.S.C. 7706(b)(3)), and 
consistent with the transformational development 
program of the Department of State; 
(2) the Multilateral Investment Fund, which 
was fully established in 1993 as part of President 
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George H.W. Bush’s Enterprise for the Americas 
Initiative, has been successful in promoting inclusive 
economic growth in Latin America and the Carib-
bean; 
(3) creating a public-private partnership work-
ing in coordination with the Multilateral Investment 
Fund will accelerate the work of the Multilateral In-
vestment Fund and allow it to expand economic op-
portunity to the people in the Western Hemisphere; 
and 
(4) as stated in section 499L of the Foreign 
Assistance Act of 1961, as added by section 3, 
amounts authorized to be appropriated pursuant to 
the amendments made by this Act for a fiscal year 
for initiatives to reduce poverty, expand the middle 
class, and foster increased economic opportunity in 
the countries of the Western Hemisphere are in ad-
dition to amounts that would be allocated or pro-
jected in the President’s budget request for Latin 
America and the Caribbean for such fiscal year. 
SEC. 6. PAYMENT OF ARREARS OWED BY UNITED STATES 
TO THE MULTILATERAL INVESTMENT FUND. 
There is authorized to be appropriated to the Sec-
retary of the Treasury $51,000,000 for payment to the 
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Inter-American Development Bank of arrears owed by the 
United States to the Multilateral Investment Fund. 
Æ 
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