SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Social Investment and 
Economic Development Fund for the Americas Act of 
2003’’. 
SEC. 2. FINDINGS; STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) The historic economic, political, cultural, 
and geographic relationships among the countries of 
the Western Hemisphere are unique and of con-
tinuing special significance to the United States. 
(2) The interests of the countries of the West-
ern Hemisphere are more interrelated today than 
ever before. Consequently, sound economic, social, 
and democratic progress in each of the countries 
continues to benefit other countries, and lack of it 
in any country may have serious repercussions in 
others. 
(3) Following the historic Summits of the 
Americas—the 1994 Summit in Miami, the 1998 
Summit in Santiago, Chile, and the 2001 Summit in 
Quebec City, Canada—the heads of state of the 
countries of the Western Hemisphere accepted the 
formidable challenge of economic and social integra-
tion in and between their respective countries. 
(4) To make progress toward economic and so-
cial integration, there is a compelling need to focus
on the social development of the people of the Amer-
icas which, in turn, will promote the economic and 
political development of the region. 
(5) Investment in social development in the 
Americas, including investment in human and social 
capital, specifically in education, health, housing, 
and labor markets with the goal of combating social 
exclusion and social ills, will consolidate political de-
mocracy and the rule of law and promote regional 
economic integration and trade in the region. 
(6) The challenge of achieving economic inte-
gration between one of the world’s most developed 
economies and some of the poorest and most vulner-
able countries requires a special effort to promote 
social equality, develop skills, and modernize the in-
frastructure in poorer countries that will enable the 
people of these countries to maximize the amount of 
benefits accrued from economic integration. 
(7) The particular challenge facing social and 
economic development in Latin America is the his-
toric and persistent highly unequal distribution of 
wealth. Latin America suffers from the most un-
equal distribution of wealth in the world with huge 
inequities in the distribution of assets including edu-
cation, land, and credit.
(8) Latin America also confronts the challenge 
of an increasing number of poor people. As of today, 
approximately one-third of the population lives in 
poverty and increasing numbers live in extreme pov-
erty. Poverty exists in all Latin American countries 
but 70 percent of the region’s poor live in the five 
largest middle-income countries. 
(9) Marginalized groups, including indigenous 
populations, people of African descent, women, peo-
ple with disabilities, and rural populations, are so-
cially excluded and suffer from poverty, stigma, and 
discrimination. 
(10) Democratic values are dominant through-
out the Americas, and nearly all governments in the 
region have come to power through democratic elec-
tions. 
(11) Nonetheless, existing democratic govern-
ments and their constituent institutions remain frag-
ile and face critical challenges including effective 
democratic civilian authority over these institutions, 
including the military, the consolidation or establish-
ment of independent judicial institutions and the 
rule of law, and the elimination of corruption. 
(12) The prosperity, security, and well-being of 
the United States is linked directly to peace, pros-
perity, and democracy in the Americas. The entire 
region benefits by reducing poverty, strengthening 
the middle class, and promoting the rule of law 
which will also increase markets for United States 
goods and create a better environment for regional 
investment by United States businesses. 
(13) Section 101 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151) establishes as a principal 
objective of United States foreign assistance the 
‘‘encouragement and sustained support of the people 
of developing countries in their efforts to acquire the 
knowledge and resources essential to development 
and to build the economic, political, and social insti-
tutions which will improve the quality of their lives’’. 
(14) It is in the national interests of the United 
States to assist developing countries in the Western 
Hemisphere as they implement the economic and po-
litical policies which are necessary to achieve equi-
table economic growth. 
(15) The Summit of the Americas has directly 
charged the multilateral institutions of the Americas, 
including the Organization of American States 
(OAS), the Inter-American Development Bank 
(IADB), and the new Inter-American Agency for Co-
operation and Development with mobilizing private-
public sector partnerships among industry and civil 
society to help achieve equitable development objec-
tives. 
(16) By supporting the purposes and objectives 
of development and applying such purposes and ob-
jectives to the Americas, a Social Investment and 
Economic Development Fund for the Americas can 
advance the national interests of the United States 
and can directly improve the lives of the poor and 
marginalized groups, encourage broad-based eco-
nomic growth while protecting the environment, 
build human capital and knowledge, support mean-
ingful participation in democracy, and promote 
peace and justice in the Americas. 
(b) STATEMENT OF POLICY.—It is, therefore, the 
policy of the United States—
(1) to promote market-based principles, eco-
nomic integration, social development, and trade in 
and between countries of the Americas by—
(A) nurturing public-private partnerships 
and microenterprise development; 
(B) improving the quality of life and in-
vesting in human capital, specifically targeting 
education, health and disease prevention, and 
housing;
(C) strengthening the rule of law through 
improved efficiency and transparency in govern-
ment services; and 
(D) reducing poverty and eliminating the 
exclusion of marginalized populations, including 
people of African descent, indigenous groups, 
women, and people with disabilities; and 
(2) to establish an investment fund for the 
Western Hemisphere to advance the national inter-
ests of the United States, directly improve the lives 
of the poor and marginalized, encourage broad-based 
economic growth while protecting the environment, 
build human capital and knowledge, support mean-
ingful participation in democratic institutions and 
processes, and promote peace and justice in the 
Americas. 
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:
‘‘CHAPTER 13—SOCIAL INVESTMENT AND 
ECONOMIC DEVELOPMENT FUND FOR 
THE AMERICAS 
‘‘SEC. 499H. AUTHORIZATION OF ASSISTANCE. 
‘‘(a) IN GENERAL.—The President, acting through 
the Administrator of the United States Agency for Inter-
national Development, shall provide assistance to reduce 
poverty and foster increased economic opportunity in the 
countries of the Western Hemisphere by—
‘‘(1) nurturing public-private partnerships and 
microenterprise development; 
‘‘(2) improving the quality of life and investing 
in human capital, specifically targeting education, 
health and disease prevention, and housing; 
‘‘(3) strengthening the rule of law through im-
proved efficiency and transparency in government 
services; and 
‘‘(4) reducing poverty and eliminating the ex-
clusion of marginalized populations, including people 
of African descent, indigenous groups, women, and 
people with disabilities. 
‘‘(b) TERMS
AND CONDITIONS.—Assistance under 
this chapter may be provided on such other terms and con-
ditions as the President may determine.
‘‘SEC. 499I. TECHNICAL REVIEW COMMITTEE. 
‘‘(a) IN GENERAL.—There is established within the 
United States Agency for International Development a 
technical review committee. 
‘‘(b) MEMBERSHIP.—The President, by and with the 
advice and consent of the Senate, shall appoint to serve 
on the technical review committee—
‘‘(1) individuals with technical expertise with 
respect to the development of Latin America and the 
Caribbean; and 
‘‘(2) citizens of the United States with technical 
expertise with respect to development projects and 
business experience. 
Technical expertise shall be the sole criterion in making 
appointments to the technical review committee. 
‘‘(c) DUTIES.—The technical review committee shall 
review all projects proposed for funding using assistance 
provided under section 499H(a), and make recommenda-
tions to the President with respect to the guidelines to 
be used in evaluating project proposals and the suitability 
of the proposed projects for funding. 
‘‘(d) CONFLICTS OF INTEREST.—A member of the 
technical review committee shall not be permitted to re-
view an application submitted by an organization with 
which the member has been or is affiliated.
‘‘SEC. 499J. REPORT. 
‘‘The President shall prepare and transmit to the 
Committee on International Relations of the House of 
Representatives, the Committee on Foreign Relations of 
the Senate, and other appropriate congressional commit-
tees an annual report on the specific programs, projects, 
and activities carried out under this chapter during the 
preceding year, including an evaluation of the results of 
such programs, projects, and activities. 
‘‘SEC. 499K. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this chapter $250,000,000 for 
each of the fiscal years 2005 through 2009. 
‘‘(b) ADDITIONAL AUTHORITIES.—Amounts appro-
priated pursuant to subsection (a)—
‘‘(1) may be referred to as the ‘United States 
Social Investment and Economic Development Fund 
for the Americas’; 
‘‘(2) are authorized to remain available until ex-
pended; and 
‘‘(3) are in addition to amounts otherwise avail-
able for such purposes. 
‘‘(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—283z–10) is amended by adding at the end 
the following: 
‘‘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 
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 (b). 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 (b). 
‘‘(b) GOVERNING RULES.—
‘‘(1) USE OF FUNDS.—The Fund shall be used 
to provide assistance to reduce poverty and foster in-
creased economic opportunity in the countries of the 
Western Hemisphere by—
‘‘(A) nurturing public-private partnerships 
and microenterprise development; 
‘‘(B) improving the quality of life and in-
vesting in human capital, specifically targeting 
education, health and disease prevention, and 
housing; 
‘‘(C) strengthening the rule of law through 
improved efficiency and transparency in govern-
ment services; and 
‘‘(D) reducing poverty and eliminating the 
exclusion of marginalized populations, including 
people of African descent, indigenous groups, 
women, and people with disabilities. 
‘‘(2) APPLICATION FOR FUNDING THROUGH A 
COMPETITIVE PROCESS.—Any interested person or 
organization may submit an application for funding 
by the Fund. 
‘‘(3) TECHNICAL REVIEW COMMITTEE.—
‘‘(A) IN GENERAL.—The Fund shall have 
a technical review committee. 
‘‘(B) MEMBERSHIP.—The Board of Execu-
tive Directors of the Bank shall appoint to 
serve on the technical review committee—
‘‘(i) individuals with technical exper-
tise with respect to the development of 
Latin America and the Caribbean; and 
‘‘(ii) citizens of the United States with 
technical expertise with respect to develop-
ment projects and business experience. 
Technical expertise shall be the sole criterion 
(other than citizenship pursuant to clause (ii)) 
in making appointments to the technical review 
committee. 
‘‘(C) DUTIES.—The technical review com-
mittee shall review all projects proposed for 
funding by the Fund, and make recommenda-
tions to the Board of Executive Directors of the 
Bank with respect to the guidelines to be used 
in evaluating project proposals and the suit-
ability of the proposed projects for funding. 
‘‘(D) CONFLICTS OF INTEREST.—A mem-
ber of the technical review committee shall not 
be permitted to review an application submitted 
by an organization with which the member has 
been or is affiliated. 
‘‘(4) REVIEW
OF
PROPOSED
PROJECTS.—Not 
more frequently than annually, the Board of Execu-
tive Directors of the Bank shall review and make de-