I 
111TH CONGRESS 
1ST SESSION H. R. 4368 
To authorize the establishment of a Social Investment and Economic Develop-
ment for the Americas Fund to reduce poverty, expand the middle 
class, and foster increased economic opportunity in that region, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 16, 2009 
Mr. ENGEL (for himself, Mr. MEEKS of New York, Mr. HONDA, Mr. SIRES, 
Mr. MCGOVERN, and Ms. LEE of California) introduced the following bill; 
which was referred to the Committee on Foreign Affairs 
A BILL 
To authorize the establishment of a Social Investment and 
Economic Development for the Americas Fund to reduce 
poverty, expand the middle class, and foster increased 
economic opportunity in that region, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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 2010’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Findings. 
Sec. 4. Statement of policy. 
Sec. 5. Establishing a social investment and economic development fund for the 
Americas. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Foreign Relations 
of the Senate and the Committee on Foreign Affairs 
of the House of Representatives. 
(2) THE
AMERICAS.—The term ‘‘Americas’’ 
means all the countries of North America, Central 
America, South America, and the Caribbean. 
(3) THE REGION.—The term ‘‘Region’’ means 
all the countries of Central America, South America, 
the Caribbean, and Mexico. 
SEC. 3. FINDINGS. 
Congress finds that— 
(1) it is in the national interest and national se-
curity interest of the United States to help foster 
greater economic security and stability in the Amer-
icas; 
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(2) the Americas are a distinct geographical re-
gion with political and cultural identities that are 
linked in important ways; 
(3) many of the social, economic, and security 
issues in the Americas transcend national borders, 
and addressing these issues requires a coordinated, 
long-term approach; 
(4) over the last few decades, there has been 
notable progress on democracy and economic sta-
bility in the Region, and it is now largely made up 
of democracies with shared democratic values; 
(5) for progress in the Region to be sustained, 
governments will need to continue to develop effec-
tive and transparent civilian institutions, and main-
tain a system of checks and balances among those 
institutions; 
(6) the United States is committed to pro-
moting democracy, human rights, and social and 
economic development throughout the Americas, 
while respecting the heritage, culture, and sov-
ereignty of all nations; 
(7) poverty and inequality remain persistent 
problems in the Americas, spawning street crime, 
criminal cartels, and undermining the authority of 
government institutions; 
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(8) the poverty rate in the Region is nearly 40 
percent, with little significant improvement since the 
1980s, and the countries in the Region, on average, 
have the most unequal distribution of wealth in the 
world; 
(9) greater citizen engagement and closer con-
nections between the institutions of civil society and 
local and national governments are critical to polit-
ical stability and economic growth in the Americas; 
(10) development assistance to promote micro, 
small, and medium enterprise growth, improve the 
investment climate, and create a competitive work-
force in the countries of the Region can help foster 
economic security and stability; 
(11) an expanding middle class in the Region 
will result in increased demand for exports from the 
United States; 
(12) in partnering with the countries of the Re-
gion, the United States can play a positive role in 
addressing the challenges of poverty and inequality, 
and achieving greater energy security; 
(13) an increased United States commitment to 
economic and social development in the Region can 
benefit workers and businesses in the United States; 
and 
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(14) as President Obama said to the leaders of 
the Region at the Fifth Summit of the Americas, the 
United States is ‘‘committed to combating inequality 
and creating prosperity from the bottom up . . . 
This is by no means charity. Together, we can cre-
ate a broader foundation for prosperity that builds 
new markets and powers new growth for all peoples 
in the hemisphere’’. 
SEC. 4. STATEMENT OF POLICY. 
It is the policy of the United States— 
(1) to minimize the negative economic impact 
on the countries in the Region of the global reces-
sion, and to seek a broad-based regional recovery; 
(2) to promote democracy and the rule of law 
in the Region; 
(3) to promote and strengthen human rights in 
the Region by— 
(A) participating in the Inter-American 
Commission on Human Rights and in the Inter- 
American Court of Human Rights; 
(B) concluding negotiations on the draft 
Inter-American Convention against Racism and 
All Forms of Discrimination and Intolerance; 
and 
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(C) supporting the full rights of indigenous 
peoples and Afro-descendents in the Americas, 
including the right to participate in the political 
and economic life of a nation; 
(4) to improve living conditions for all citizens 
in the Americas by— 
(A) protecting all people in the Americas, 
especially women, children, and adolescents, 
from all forms of trafficking in persons and sex-
ual and economic exploitation; 
(B) coordinating national strategies within 
the Americas to eradicate forced labor before 
2010, and the worst forms of child labor by 
2020; and 
(C) supporting programs that create op-
portunities for work in the formal sector, and 
programs providing workers with the technical 
skills needed to meet the demands of labor mar-
kets; 
(5) to improve public health in the countries of 
the Americas by— 
(A) implementing the World Health Orga-
nization’s International Health Regulations to 
prevent pandemics and reduce the likelihood of 
public health emergencies; and 
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(B) implementing the Joint United Na-
tions Program on HIV/AIDS; 
(6) to improve public education in the Americas 
by— 
(A) supporting programs which seek to in-
crease enrollments in secondary and vocational- 
technical education; 
(B) reaffirming the commitment of the 
United States to the 2008 Declaration of 
Medellı´n: Youth and Democratic Values; and 
(C) supporting the Inter-American Social 
Protection Network; 
(7) to improve the capacity of government insti-
tutions by— 
(A) supporting the Inter-American Net-
work on Decentralization, Local Government 
and Citizen Participation (RIAD); 
(B) supporting the Inter-American Con-
vention against Corruption, adopted at Caracas, 
Venezuela, March 29, 1996, in the fight against 
all forms of corruption, fraudulent practices 
and unethical behaviors. 
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SEC. 5. ESTABLISHING A SOCIAL INVESTMENT AND ECO-
NOMIC DEVELOPMENT FUND FOR THE AMER-
ICAS. 
(a) AUTHORIZATION OF ASSISTANCE.—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: 
‘‘CHAPTER 13—SOCIAL INVESTMENT AND 
ECONOMIC DEVELOPMENT FOR THE 
AMERICAS 
‘‘SEC. 499G. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional com-
mittees’ means the Committee on Foreign Relations 
of the Senate and the Committee on Foreign Affairs 
of the House of Representatives. 
‘‘(2) THE
AMERICAS.—The term ‘Americas’ 
means all the countries of North America, Central 
America, South America, and the Caribbean. 
‘‘(3) THE REGION.—The term ‘Region’ means 
all the countries of Central America, South America, 
the Caribbean, and Mexico. 
‘‘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 governments and 
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civil society in the Americas, shall provide increased and 
sustained assistance to build civilian institutions that will 
help reduce poverty, expand the middle class, and foster 
increased economic opportunity by— 
‘‘(1) promoting education; 
‘‘(2) improving health and disease prevention; 
‘‘(3) increasing access to income generating ac-
tivities; 
‘‘(4) reducing crime, particularly violent crime, 
including— 
‘‘(A) murder; 
‘‘(B) kidnapping; 
‘‘(C) gang violence, including youth gangs; 
and 
‘‘(D) violence against women; 
‘‘(5) generating rural development; 
‘‘(6) reducing poverty and inequality in both 
urban and rural areas; 
‘‘(7) strengthening the rule of law, governance, 
and democracy through the establishment of— 
‘‘(A) independent judiciaries; 
‘‘(B) efficient processes to adjudicate 
claims; and 
‘‘(C) effective law enforcement institutions; 
and 
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‘‘(8) eliminating the exclusion of marginalized 
populations, including— 
‘‘(A) indigenous groups; 
‘‘(B) people of African descent; 
‘‘(C) women; 
‘‘(D) the impoverished; and 
‘‘(E) people with disabilities. 
‘‘(b) CONTRIBUTION REQUIREMENT.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), in order to receive assistance from the 
United States under this chapter, a recipient coun-
try shall contribute at least 10 percent of the total 
value of the funds the United States provides for 
projects in the recipient country. 
‘‘(2) WAIVER.— 
‘‘(A) AUTHORITY.—The Secretary of State 
may waive paragraph (1) if it is determined 
that it is important to the national security in-
terests of the United States to do so. 
‘‘(B) REPORT.—Whenever the waiver au-
thority under subparagraph (A) is exercised, 
the Secretary of State shall submit a report to 
the appropriate congressional committees detail-
ing the justification for the waiver and the pur-
poses for which the funds will be spent. 
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‘‘(3) ADDITIONAL
CONTRIBUTIONS.—The Ad-
ministrator of the United States Agency for Inter-
national Development may require additional con-
tributions from the recipient country. 
‘‘(c) INELIGIBILITY TO RECEIVE ASSISTANCE.—The 
President may not provide 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. 
‘‘(d) ADDITIONAL TERMS AND CONDITIONS.—The 
President may impose additional terms and conditions on 
countries receiving assistance under this section. 
‘‘(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 this section. 
‘‘SEC. 499I. 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 initial 
design stage and the conclusion of the projects to deter-
mine if the projects are helping— 
‘‘(1) to reduce poverty in the Americas; and 
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‘‘(2) to foster social and economic development 
in the countries of the Americas. 
‘‘(b) COORDINATED EVALUATIONS.—If possible, the 
evaluations shall be conducted in coordination with evalua-
tions of similar projects that other donors fund in order 
to expand the evidence base used for making decisions. 
‘‘(c) USE OF EVALUATIONS.—The Administrator of 
the United States Agency for International Development 
shall use information from the evaluations conducted 
under subsection (a) to inform future project decisions. 
‘‘SEC. 499J. 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 2010, and annually thereafter, 
the President shall submit to Congress a report on the 
specific programs, projects, and activities carried out 
under this chapter during the preceding year, including 
an evaluation of the results of the programs, projects, and 
activities. 
‘‘SEC. 499K. BUDGET. 
‘‘The report required under section 499J may be sub-
mitted with the budget justification materials submitted 
to Congress and the budget submitted by the President 
under section 1105(a) of title 31, United States Code. 
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‘‘SEC. 499L. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—In addition to amounts other-
wise authorized to be appropriated for assistance to the 
Region, there are authorized to be appropriated to carry 
out this chapter— 
‘‘(1) $175,000,000 for fiscal year 2010; 
‘‘(2) $225,000,000 for fiscal year 2011; 
‘‘(3) $275,000,000 for fiscal year 2012; 
‘‘(4) $300,000,000 for fiscal year 2013; and 
‘‘(5) $325,000,000 for fiscal year 2014. 
‘‘(b) ADDITIONAL AUTHORITIES.—Amounts appro-
priated pursuant to subsection (a) shall remain available 
until expended. 
‘‘(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 to carry out programs authorized in subsection (a). 
‘‘(d) MICROFINANCE
GROWTH
FUND
FOR
THE 
AMERICAS.— 
‘‘(1) PURPOSE.—The purpose of the Micro-
finance Growth Fund for the Americas is to provide 
the countries in the Region with— 
‘‘(A) stable, medium-term and long-term 
sources of finance to microfinance institutions; 
and 
‘‘(B) investment vehicles. 
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‘‘(2) SENSE OF CONGRESS.—It is the sense of 
Congress that United States contributions to the 
Microfinance Growth Fund for the Americas should 
be matched on a dollar-for-dollar basis with con-
tributions from the public, private, or non-profit sec-
tors. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated $50,000,000 
in each of the fiscal years 2010 through 2014 for 
debt and equity financing for the Microfinance 
Growth Fund for the Americas. 
‘‘(e) CAPACITY BUILDING RELATED TO TRADE PRO-
MOTION AGREEMENTS.—There is authorized to be appro-
priated to the United States Agency for International De-
velopment $15,000,000 in each of the fiscal years 2010 
through 2014 for labor and environmental capacity build-
ing activities relating to the implementation of trade pro-
motion agreements. 
‘‘(f) 
ELIGIBLE
AGREEMENTS.—The 
agreements 
under subsection (e) may include agreements between the 
United States and other countries that are— 
‘‘(1) ratified agreements; 
‘‘(2) pending agreements; or 
‘‘(3) potential agreements. 
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‘‘(g) PROPOSED PUBLIC-PRIVATE FUND FOR SOCIAL 
AND ECONOMIC DEVELOPMENT IN THE AMERICAS.— 
‘‘(1) IN GENERAL.—The Secretary of State, in 
consultation with the Secretary of the Treasury and 
the Administrator of the United States Agency for 
International Development, shall immediately estab-
lish and convene an advisory group, consisting of 
persons with a relevant professional background in 
the Americas from the public, private, and nonprofit 
sectors, to consider the feasibility of establishing a 
new public-private Fund for Social and Economic 
Development in the Americas (referred to in this 
section as ‘‘the Fund’’). 
‘‘(2) SENSE OF CONGRESS.—It is the sense of 
Congress that— 
‘‘(A) the Fund should be governed by a 
board composed of members drawn from the 
public, private, and nonprofit sectors in the 
United States and the Region; 
‘‘(B) building on initiatives already under-
way in the Region, the Fund should make 
grants for the purpose of advancing long-term 
social and economic development in the Amer-
icas; 
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‘‘(C) governments, development organiza-
tions, and private foundations throughout the 
world should contribute to the Fund, and the 
contribution of the United States Government 
to the Fund should be no greater than 1⁄3 of the 
total annual budget of the Fund; and 
‘‘(D) each country choosing to participate 
in the Fund should be required to contribute at 
least 10 percent of the annual total of grants 
received by such country, to ensure the active 
involvement of the country in the operation of 
the Fund and the grant-making process. 
‘‘(3) REPORT.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of the enactment of this Act, the 
advisory group established under paragraph (1) 
shall submit to the Secretary of State and the 
appropriate congressional committees a report 
containing conclusions about the feasibility of a 
Fund and its recommendations for organizing, 
financing, and operating the Fund. 
‘‘(B) CONTENTS
OF
THE
REPORT.—The 
report submitted under subparagraph (A) shall 
include a determination of the advantages and 
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disadvantages of establishing and operating the 
Fund within an existing institution, such as— 
‘‘(i) the Inter-American Foundation; 
‘‘(ii) the World Bank; or 
‘‘(iii) the Inter-American Development 
Bank. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as may be necessary for fiscal year 2010 for the 
purpose of carrying out this subsection.’’. 
Æ 
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