A bill to direct the President to establish an interagency mechanism to coordinate United States development programs and private sector investment activities, and for other purpose.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Growth and Development 
Act.''

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The promotion of sustainable economic growth is the 
        only long-term solution to lifting people out of poverty and 
        addressing development challenges such as infectious disease, 
        food security, education, and access to clean water.
            (2) Several of the greatest development success stories in 
        the last 50 years demonstrate how private sector investment and 
        economic growth are fundamental to lifting populations out of 
        poverty.
            (3) There has been a dramatic shift in the composition of 
        capital flows to the developing world. Whereas forty years ago 
        more than 70 percent of capital flowing to developing countries 
        was public sector foreign assistance, today 87 percent of 
        capital flowing to the developing world comes from the private 
        sector.
            (4) Eleven of the 15 largest importers of United States 
        goods and services are countries that graduated from United 
        States foreign assistance, and 12 of the 15 fastest growing 
        markets for United States exports are former United States 
        foreign assistance recipients.
            (5) With 12 departments, 26 agencies, and more than 60 
        Federal Government offices all involved in the delivery of 
        United States foreign assistance, it is extremely difficult for 
        United States businesses to navigate the bureaucracy in search 
        of opportunities to partner with such United States agencies.
            (6) Although many United States development agencies have 
        taken steps to improve their private sector coordination 
        capabilities in recent years, these agency-specific strategies 
        remain opaque and must be integrated into a coherent 
        interagency coordination structure to engage the private 
        sector.
            (7) President Barack Obama's 2010 Policy Directive on 
        Global Development created an Interagency Policy Committee 
        (IPC) for Global Development. However, the IPC has not yet 
        established a streamlined, interagency mechanism for 
        coordination with the private sector.
            (8) In order to better leverage United States foreign 
        assistance dollars and to promote sustainable economic 
        development in partner countries, the private sector should be 
        consulted during development planning and programming 
        processes.
            (9) Whether it is in the context of country, sector, or 
        global development strategy, decisions on program 
        prioritization and resource allocations would benefit greatly 
        from private sector perspectives and market data.
            (10) By consulting with the private sector from the outset, 
        development programs can be designed to better attract private 
        sector investment and to promote public-private partnerships in 
        key development sectors.
            (11) The Millennium Challenge Corporation and the 
        Partnership for Growth both analyze constraints to growth as 
        part of their planning processes, but these analyses need to be 
        included in all agency country, sector, and global development 
        strategies to more effectively inform and guide the full 
        spectrum of United States development programs.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the United States Agency for International 
        Development.
            (2) United states development agencies.--The term ``United 
        States development agencies'' means the Department of State, 
        the United States Agency for International Development, the 
        Millennium Challenge Corporation, the Overseas Private 
        Investment Corporation, the Trade and Development Agency, the 
        Inter-American Foundation, and the African Development 
        Foundation.
            (3) Private sector.--The term ``private sector'' means for-
        profit United States businesses.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of State.

SEC. 4. PURPOSE.

    The purpose of this Act is to maximize the impact of United States 
development programs by--
            (1) enhancing coordination between United States 
        development agencies and their programs and the private sector 
        and its investment activities;
            (2) integrating the private sector into United States 
        development agencies planning and programming processes;
            (3) institutionalizing analyses of constraints to growth 
        and investment throughout United States development agencies 
        planning and programming processes; and
            (4) ensuring United States development agencies are 
        accountable for progress toward improving coordination of 
        United States development programs and private sector 
        investment activities.

SEC. 5. INTERAGENCY MECHANISM TO COORDINATE UNITED STATES DEVELOPMENT 
              PROGRAMS AND PRIVATE SECTOR INVESTMENT ACTIVITIES.

    (a) In General.--The President, in consultation with the Secretary, 
the Administrator, the Chief Executive Officer of the Millennium 
Challenge Corporation, and the heads of other United States development 
agencies, shall establish an interagency mechanism to improve 
coordination of United States development programs with private sector 
investment activities.
    (b) Duties.--The mechanism established under subsection (a) shall--
            (1) streamline and integrate the various private sector 
        liaison functions of United States development agencies;
            (2) facilitate the use of various development and finance 
        tools across United States development agencies to attract 
        greater private sector participation in development activities; 
        and
            (3) establish a single point of contact for the private 
        sector for partnership opportunities with United States 
        development agencies.

SEC. 6. INTEGRATING PRIVATE SECTOR CONSULTATION IN COUNTRY, SECTOR, AND 
              GLOBAL DEVELOPMENT STRATEGIES.

    The Secretary and the Administrator shall direct their respective 
policy and country teams to include private sector consultation in all 
country, sector, and global development strategies, including 
integrated country strategies, regional and functional strategies, 
country development cooperation strategies, mission strategic resource 
plans, and global development strategies.

SEC. 7. ANALYSIS OF CONSTRAINTS TO GROWTH AND INVESTMENT IN FOREIGN 
              COUNTRIES AND SECTORS.

    (a) In General.--The Secretary and the Administrator shall ensure 
that independent constraints to growth and investment analyses are 
conducted as a component of all appropriate country, sector, and global 
development strategies.
    (b) Matters To Be Included.--The analysis required under subsection 
(a) shall include, at a minimum, an identification and analysis of--
            (1) constraints posed by the inadequacies of critical 
        infrastructure, rule of law, tax and investment codes, and 
        customs and regulatory regimes of recipient countries, as 
        appropriate; and
            (2) particular economic sectors that are central to 
        achieving economic growth, such as agriculture, transportation, 
        energy, and financial services.
    (c) Conduct.--The analysis required under subsection (a) shall be 
conducted by teams composed of representatives of United States 
development agencies, international organizations, the private sector, 
including representatives from commercial sectors of recipient 
countries, and other stakeholders.
    (d) Results.--The results of the analysis required under subsection 
(a) shall be incorporated into development strategies of United States 
development agencies and shall be used to inform and guide resource 
allocations.

SEC. 8. REPORT.

    Not later than one year after the date of the enactment of this 
Act, the President shall transmit to the Committee on Foreign Relations 
and the Committee on Appropriations of the Senate and the Committee on 
Foreign Affairs and the Committee on Appropriations of the House of 
Representatives a report that describes the specific measures that have 
been taken to implement this Act and the outcomes that such measures 
are intended to produce.

Summary: Economic Growth and Development Act - Directs the President to establish an interagency mechanism to improve coordination of U.S. development programs with private sector investment activities.

Directs the President and Administrator of the U.S. Agency for International Development (USAID) to: (1) direct their respective policy and country teams to include private sector consultation in all country, sector, and global development strategies; and (2) ensure that independent analyses of constraints to growth are conducted as a component of all appropriate country, sector, and global development strategies.