Economic Growth and Development Act

Bill: 113-s-2831
Sponsor: full_name: Sen. Isakson, Johnny [R-GA]
Introduced: 2014-09-16
Policy area: International Affairs
Subjects: African Development Foundation

Congressional oversight

Department of State

Economic development

Executive agency funding and structure

Foreign aid and international relief

Government corporations and government-sponsored enterprises

Government studies and investigations

Inter-American Foundation

Overseas Private Investment Corporation (OPIC)

Public-private cooperation

Rule of law and government transparency

Trade and Development Agency

U.S. Agency for International Development (USAID)

U.S. and foreign investments
Latest action: action_date: 2014-09-16
text: Read twice and referred to the Committee on Foreign Relations.

Summaries:
action_date: 2014-09-16
action_desc: Introduced in Senate
text: <p>Directs the President to establish a primary mechanism to assist the private sector in coordinating U.S. development programs with private sector investment activities. </p> <p> Directs the Secretary of State and the Administrator of the U.S. Agency for International Development (USAID) to direct their respective policy and country teams to include private sector consultation in all country, sector, and global development strategies.</p>

tv_txt: II 113th CONGRESS 2d Session S. 2831 IN THE SENATE OF THE UNITED STATES September 16, 2014 Mr. Isakson (for himself and Mr. Rubio ) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations 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 purposes.

1. Short title This Act may be cited as the Economic Growth and Development Act . 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 40 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 agency country, sector, and global development strategies to more effectively inform and guide the full spectrum of United States development programs. 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. 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 private sector input 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. 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, the Department of Commerce, and the heads of other United States agencies that undertake development efforts, shall establish a primary mechanism to assist the private sector in coordinating 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. 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. 7. Analysis of constraints to growth and investment in foreign countries and sectors (a) In general The Secretary, the Administrator, and the heads of other agencies that conduct relevant development activities shall ensure that rigorous constraints to growth and investment analyses are available and integrated as a component of all appropriate country, region, and sector 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 If a credible constraints analysis meeting the requirements set out in subsection (b) for a particular country, region, or sector has not already been conducted by another United States Government entity or multilateral institution, the analysis shall be conducted by teams composed of representatives of relevant United States agencies which will consult with international organizations, the private sector, including representatives from commercial sectors of recipient countries, and other stakeholders. In all instances, whether using an existing constraints analysis or a specially conducted one, the constraints analysis shall be made available to the public, and for comment by all stakeholders prior to finalization of development strategies. (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. 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.