109 HR 5480 IH: To promote economic diversification, entrepreneurship, U.S. House of Representatives 2006-05-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5480 IN THE HOUSE OF REPRESENTATIVES May 25, 2006 Mr. McDermott (for himself, Mr. Lantos, Mr. Rangel, Mr. Payne, Mr. English of Pennsylvania, Ms. McCollum of Minnesota, Mr. Jefferson, Mr. Berman, Mr. Doggett, Ms. Millender-McDonald, Mr. Meeks of New York, Mr. McNulty, Mr. McGovern, Ms. Bordallo, Ms. Watson, Ms. Corrine Brown of Florida, Ms. Eddie Bernice Johnson of Texas, Mr. Gonzalez, Mr. Miller of North Carolina, and Ms. Jackson-Lee of Texas) introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committees on Ways and Means, Small Business, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To promote economic diversification, entrepreneurship, and private sector development in Africa, and to promote partnerships among small and medium enterprises in the United States and the African private sector in qualified sub-Saharan African countries.

1.

Short title

This Act may be cited as the African Entrepreneurship Act of 2006.

2.

Findings

Congress finds the following: (1)According to the Organization for Economic Co-operation and Development (OECD), the economies of sub-Saharan African countries have registered their highest overall growth in eight years—more than five percent in 2004—due to rising global commodity prices, the expansion of production in oil-producing sub-Saharan African countries, and prudent macro-economic policies. (2)While economic liberalization has reduced the involvement of governments of sub-Saharan African countries in the economic sector, it has not resulted in improved credit delivery to finance domestic businesses, particularly small and medium enterprises in sub-Saharan African countries, in the private sector. (3)Increasingly, governments of sub-Saharan African countries are making concerted efforts to investigate corruption, prosecute corrupt officials, and recover public funds through the creation of agencies such as the Economic and Financial Crimes Commission in Nigeria, the Serious Fraud Office in Ghana, the Federal Ethics and Anticorruption Commission in Ethiopia, and the Anticorruption Commission in Zambia. (4)A major challenge for sub-Saharan African countries is to productively invest their own capital to expand domestic business ownership and create employment, particularly for youth, in order to promote broad and sustainable economic growth and democracy. (5)While the microenterprise movement has shown itself to be an important generator of self-employment, research and experience throughout sub-Saharan Africa also have proven that small and medium enterprises are the greatest catalyst for job creation, skills transfer, and wealth creation in sub-Saharan Africa. (6)Although small and medium enterprises in sub-Saharan African countries make up the largest portion of the formal economy in sub-Saharan African countries, the average annual contribution of investments of such small and medium enterprises to growth in the gross domestic product of sub-Saharan African countries by proportion declined from an average of 14 percent in the 1970s, to 13 percent in the 1980s, and to 12 percent in the first half of the 1990s, while during the same period, the proportion of gross domestic product investment by small and medium enterprises in other developing regions increased. (7)Many retail banks avoid lending to small and medium enterprises in sub-Saharan African countries or engage in predatory lending practices, considering such small and medium enterprises as presenting a high credit default risk and as costly to administer, and instead concentrate on providing credit to larger local or international firms or on holding high-yield government bonds. (8)This approach harms the prospects for sustainable private sector development by ignoring the necessity of a bottom-up capital formation—a key factor in creating jobs which is necessary to reduce poverty and income inequalities. (9)Governments of sub-Saharan African countries must develop the fiscal policies, economic institutions, legal frameworks, labor market protections, commercial infrastructures, and lending practices to create and manage competitive business environments for investors in small and medium enterprises in sub-Saharan African countries. Further, small and medium enterprises in sub-Saharan African countries must acquire the business skills, expertise, and capital financing necessary to manage successful businesses. (10)The innovative trade capacity building efforts underway with African nations through the United States Agency for International Development’s Regional Trade Hubs enable African economies to become better integrated into regional and global markets to take advantage of trade opportunities afforded by the African Growth and Opportunity Act (19 U.S.C. 3701 et seq.). These efforts can be further augmented by providing technical assistance to small and medium enterprises, to help diversify and grow the economies of sub-Saharan Africa. (11)The experience of United States private volunteer organizations shows that deliberately targeting the capacity of small and medium enterprises, including farmers’ cooperatives and rural businesses, to access and participate in local, national, and regional markets effectively builds the capacity of small and medium enterprises to participate in export markets. (12)A World Bank study estimates that countries chiefly exporting a single commodity, such as oil, may be 22 times more likely have a civil war break out than a country with a diverse mix of exports. (13)By the year 2015, it is estimated that 25 percent of United States oil imports will originate in sub-Saharan Africa, making the political and economic stability of the region of paramount importance to United States national security. Recent incidents of violence and the recurrent disruption of oil production, including, for example, in the Niger Delta of Nigeria, highlight the need to work closely with local communities to create jobs and spread the benefits of the global economy to local residents. Many oil corporations have established local content programs to provide contracting opportunities to indigenous business leaders, but many of these business people lack the skills necessary to benefit from the highly profitable business projects available to them.

3.

Sense of Congress; declaration of policy

(a)

Sense of Congress

It is the sense of Congress that in an increasingly competitive global environment driven by transformations in technology, communications, transportation, finance, production, labor markets, sub-Saharan African countries should develop a strong and diverse private sector, particularly small and medium enterprises, to be full participants in the global economy. (b)

Declaration of policy

It shall be the policy of the Government of the United States to make available for private sector development in sub-Saharan African countries professional, technical, and other resources for capacity-building for retail banks and small and medium enterprises, including farmers’ cooperatives and businesses, to promote entrepreneurship and economic and export diversification, to expand the formal sector, and to increase trade under the African Growth and Opportunity Act (19 U.S.C. 3701 et seq.) of exports from Africa to the United States and trade among sub-Saharan African countries.

4.

African Economic Diversification financing rate

(a)

In general

Subsection (c) of section 4611 of the Internal Revenue Code of 1986 is amended— (1)in paragraph (1), by striking and in subparagraph (A), by striking the period and inserting , and in subparagraph (B), and by adding at the end the following new subparagraph: (C)the African Economic Diversification Fund financing rate. , and (2)in paragraph (2), by striking and in subparagraph (A), by striking the period and inserting , and in subparagraph (B), and by adding at the end the following new subparagraph: (C)the African Economic Diversification Fund financing rate is, with respect to a petroleum product, the column 1 general rate of duty under the Harmonized Tariff Schedule of the United States that applies to such petroleum product. . (b)

Application of African Economic Diversification Fund financing rate

Section 4611 of such Code (relating to environmental tax on petroleum) is amended by adding at the end the following new subsection: (g)

Application of African Economic Diversification Fund financing rate

(1)

In general

The African Economic Diversification Fund financing rate shall apply only to petroleum products entered into the United States directly from a beneficiary sub-Saharan African country described in section 506A(c) of the Trade Act of 1974. (2)

Termination

The African Economic Diversification Fund financing rate shall not apply after December 31, 2011. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

5.

African Economic Diversification Fund

(a)

Creation of trust fund

Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by inserting at the end the following new section:

9511.

African Economic Diversification Fund

(a)

Creation of trust fund

There is established in the Treasury of the United States a trust fund to be known as the African Economic Diversification Fund, consisting of such amounts as may be appropriated or credited to the African Economic Diversification Fund. (b)

Transfer of certain taxes

There are hereby appropriated to the African Economic Diversification Fund amounts equivalent to the taxes received in the Treasury under section 4611 (relating to environmental tax on petroleum) to the extent attributable to the African Economic Diversification Fund financing rate under section 4611(c). (c)

Expenditures

Amounts in the African Economic Diversification Fund shall be available, as provided by appropriation Acts, only for purposes of making the following expenditures— (1)

Department of Agriculture

Expenditures related to personnel and technical assistance provided by the Secretary of Agriculture, through the Foreign Agriculture Service, for the purpose of— (A)developing and facilitating value-added agricultural processing activities, as determined by the Secretary of Agriculture, in qualified sub-Saharan African countries, (B)developing a comprehensive plan for the expansion and diversification of agricultural trade between qualified sub-Saharan African countries and the United States under the African Growth and Opportunity Act and among sub-Saharan African countries, (C)arranging trade and investment missions to qualified sub-Saharan African countries to generate joint venture investment and joint venture marketing agreements between farmers in the United States and qualified sub-Saharan African countries, and (D)improving market access for United States agricultural products and equipment in qualified sub-Saharan African countries by— (i)strengthening the capacity of agricultural producer organizations in qualified sub-Saharan African countries to identify agricultural equipment and supply needs, (ii)working with United States financial institutions to increase the number of such financial institutions that cooperate with the Supplier Credit Guarantee Program, (iii)working with financial institutions in qualified sub-Saharan African countries to remove obstacles that inhibit fuller implementation of the Export Credit Guarantee and Intermediate Export Credit Guarantee programs, and (iv)facilitating access for ports of entry and warehouse facilities in qualified sub-Saharan African countries to the Facilities Guarantee Program. (2)

Small Business Administration

Expenditures related to carrying out the 21st Century African Entrepreneurs Program, established pursuant to section 22(g) of the Small Business Act, in qualified sub-Saharan African countries. (3)

Department of Commerce

Expenditures related to personnel and technical assistance provided by the Secretary of Commerce for the purpose of— (A)promoting business partnerships between entrepreneurs in the United States and in qualified sub-Saharan African countries, (B)hosting conferences and initiating 2-way trade missions to discover and encourage opportunities for private sector cooperation between the United States and qualified sub-Saharan African countries, (C)helping United States firms fully understand the risks and benefits of doing business in qualified sub-Saharan African countries and developing tools and mechanisms to reduce such risks and enhance such benefits, (D)facilitating the transfer of United States commercial and manufacturing technology to qualified sub-Saharan African countries for the purposes of expanding commercial opportunities, (E)promoting the establishment of lending programs of financial institutions for qualified small and medium African enterprises by establishing effective credit risk management systems to improve the quality of the assets of such financial institutions and the ability of such financial institutions to research and assess overall credit risk, and (F)promoting the development of qualified small and medium African enterprises that are located in rural and peri-urban areas by carrying out capacity-building activities for microenterprise business associations and microfinance networks. (4)

U.S.-Africa Private Sector Advisory Council and African Development Bank

Expenditures related to carrying out sections 7 and 8 of the African Entrepreneurship Act of 2006. (5)

United States Trade Representative

Expenditures related to activities by the United States Trade Representative to convene trade capacity building programs in qualified sub-Saharan African countries to provide technical assistance aimed to increase international trade under the African Growth and Opportunity Act. (d)

Definitions

For purposes of this section— (1)

Qualified sub-Saharan African country

The term qualified sub-Saharan African country means a beneficiary sub-Saharan African country described in section 506A(c) of the Trade Act of 1974. (2)

Qualified small and medium African enterprise

The term qualified small and medium African enterprise means a business in a qualified sub-Saharan African country that meets the standards developed for such country by the Administrator of the Small Business Administration, in cooperation with the Administrator of the United States Agency for International Development, pursuant to section 22(g)(4) of the Small Business Act.

. (b)

Clerical amendment

The table of sections for subchapter A of chapter 98 of such Code is amended by inserting at the end the following new item: Sec. 9511. African Economic Diversification Fund. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

6.

21st Century African Entrepreneurs Program

Section 22 of the Small Business Act (15 U.S.C. 649) is amended by adding at the end the following new subsection: (g)

African Entrepreneurs Program

(1)

Establishment

The Administrator shall establish in the Office of International Trade a program to be known as the 21st Century African Entrepreneurs Program to provide assistance to qualified small and medium African enterprises. (2)

African Entrepreneurs Program Centers

(A)

Establishment of Centers

As part of the program established under paragraph (1), the Administrator shall establish not less than three African Entrepreneurs Program Centers during each of fiscal years 2007 through 2012. The Administrator shall establish the Centers in central and accessible places in qualified sub-Saharan African countries. (B)

Functions

The function of each African Entrepreneurs Program Center established under subparagraph (A) is to provide information and guidance to qualified small and medium African enterprises, including— (i)providing quality training, counseling, and access to financial resources to enable qualified small and medium African enterprises to present well-developed business plans to banks in qualified sub-Saharan African countries for the purpose of accessing capital; (ii)providing counseling, training, and technical assistance in all aspects of small business management, including marketing and production, to qualified small and medium African enterprises; (iii)providing management assistance to current and prospective owners of qualified small and medium African enterprises; (iv)partnering with banks in qualified sub-Saharan African countries, the United States Agency for International Development (specifically the Development Credit Account), the Department of the Treasury, and international financial institutions, such as the World Bank and the African Development Bank, to provide loan guarantees to financial institutions in qualified sub-Saharan African countries that make loans to qualified small and medium African enterprises; (v)developing programs to help qualified small and medium African enterprises to understand export opportunities that may exist, an in particular, to understand trade preferences available to businesses located in qualified sub-Saharan African countries; and (vi)reaching out particularly to current and prospective women entrepreneurs to provide assistance relating to launching or growing a small business, and implementing the model of the women’s business centers under section 29, with regard to services and assistance provided. (C)

Personnel

(i)

Director; staff

Each African Entrepreneurs Program Center established under subparagraph (A) shall have a director and staff. (ii)

Volunteers; part-time staff

The director of an African Entrepreneurs Program Center may hire volunteers or part-time staff, as the director finds appropriate. (iii)

Consultants

The director of an African Entrepreneurs Program Center may hire a consultant or engineer or pay for the use of a testing laboratory, if the consultant, engineer, or laboratory is necessary to provide assistance to a qualified small and medium African enterprises that is in need of specialized expertise and that requests assistance from the Center. (D)

Advisory committee

For each country in which the Administrator establishes an African Entrepreneurs Program Center, the Administrator shall establish an advisory committee made up of members from the private sector for the purpose of obtaining input and advice from the members on how the Center may best serve the needs of qualified small and medium African enterprises in that country. (E)

Self-sufficiency

(i)

Initial funding

The Administrator should seek to obtain 30 percent of the funds required for each African Entrepreneurs Program Center through partnerships and in-kind support, including building space, instructor time, furniture donation, and co-funding from the public or private sector, in the country in which the Center is located. (ii)

Long-term funding

Not later than the date that is five years after the date on which the Center is established, the Administrator should seek to obtain 100 percent of the funds required for each African Entrepreneurs Program Center through mechanisms, such as public and private partnerships and small or modest fees-for-service. (3)

African small business roundtables

The Administrator shall convene two roundtables each year in each country in which an African Entrepreneurs Program Center is established under paragraph (2) to promote cooperation between banks and entrepreneurs in the United States and in qualified sub-Saharan African countries and to identify problems in the delivery of financial services to small businesses. Each roundtable should include representatives from banks in the United States with experience working with and benefitting from existing United States financial programs that support small businesses and farmers’ cooperatives. (4)

SME Congress of Sub-Saharan Africa

The Administrator shall seek to establish the SME Congress of Sub-Saharan Africa. The SME Congress of Sub-Saharan Africa shall be modeled after the SME Congress of the Americas, a hemisphere network of micro, small and medium enterprise service providers created to enhance the ability of small business to effectively participate in and benefit from international trade by seeking to reduce the time and costs associated with starting and growing a small or medium enterprise. The Administrator shall seek to coordinate SME Congress of Sub-Saharan Africa meetings with the annual meetings described in section 105(c)(2)(B) of the African Growth and Opportunity Act (19 U.S.C. 3704). (5)

Qualified small and medium African enterprise

(A)

In general

The Administrator, in cooperation with the Administrator of the United States Agency for International Development, shall develop standards, specific to the qualified sub-Saharan African country in which the business is located, for determining whether such business is a qualified small and medium African enterprise. (B)

Qualified sub-Saharan African country

For purposes of this subsection, the term qualified sub-Saharan African country means a beneficiary sub-Saharan African country described in section 506A(c) of the Trade Act of 1974 (19 U.S.C. 2466a). .

7.

U.S.-Africa Private Sector Advisory Council

(a)

Establishment

The Administrator of the Small Business Administration shall establish an advisory council to be known as the U.S.-Africa Private Sector Advisory Council (hereinafter referred to as the Council). (b)

Duties

The Council shall— (1)advise the Congress and Federal agencies on— (A)the use of expenditures made from amounts available in the African Economic Diversification Fund, established under section 9511 of the Internal Revenue Code of 1986; and (B)the implementation of policies and programs described in subsection (c) of such section; (2)assist the private sector in the United States and qualified sub-Saharan African countries in carrying out the opportunities identified by— (A)conferences and 2-way trade missions organized by the Secretary of Commerce to discover and encourage opportunities for private sector cooperation between the United States and qualified sub-Saharan African countries, and (B)trade and investment missions to qualified sub-Saharan African countries arranged by the Secretary of Agriculture to generate joint venture investment and joint venture marketing agreements between farmers in the United States and in qualified sub-Saharan African countries; (3)assist in the coordination of annual meetings hosted by United States representatives of the private sector with representatives of the private sector from sub-Saharan Africa, as described in section 105(c)(2)(B) of the African Growth and Opportunity Act (19 U.S.C. 3704); and (4)advise the President on providing assistance to qualified small and medium African enterprises in accordance with section 496A of the Foreign Assistance Act of 1961 (as amended by section 10). (c)

Appointment

(1)

Members

The Council shall be composed of 20 members, as follows: (A)1 member, appointed jointly by the chair and ranking minority member of the Committee on Ways and Means of the House of Representatives and the chair and ranking minority member of the Committee on Finance of the Senate, from the private-sector business community in qualified sub-Saharan African countries, (B)1 member, appointed jointly by the chair and ranking minority member of the Committee on Ways and Means of the House of Representatives and the chair and ranking minority member of the Committee on Finance of the Senate, from the private-sector business community in the United States, (C)1 member, appointed by the President, from the private-sector business community in qualified sub-Saharan African countries, (D)1 member, appointed by the President, from the private-sector business community in the United States, (E)8 members, appointed jointly by the Council members identified in subparagraphs (A) through (D), from the private-sector business community in qualified sub-Saharan African countries, and (F)8 members, appointed jointly by the Council members identified in subparagraphs (A) through (D), from the private-sector business community in the United States. (2)

Consultation required

The Council members identified in subparagraphs (A) through (D) of paragraph (1) shall consult among themselves prior to the appointment of additional members of the Council in order to achieve, to the maximum extent possible, fair and equitable representation of various points of view with respect to the matters to be studied by the Council under subsection (b). (3)

Terms of appointment

The members of the Council shall be appointed not more than 90 days after the date of the enactment of this Act. The members of the Council shall serve for the life of the Council. (4)

Co-chairs

The member of the Council identified in subparagraphs (A) through (D) of paragraph (1) shall serve as Co-chairs of the Council. (d)

Meetings

(1)

Initial meeting

Not later than 180 days after the date of the enactment of this Act, the Council shall conduct its first meeting. (2)

Open meetings

Each meeting of the Council shall be open to the public. (e)

Vacancies

A vacancy on the Council— (1)shall be filled in the same manner as the original appointment not later than 30 days after the Council is given notice of the vacancy, and (2)shall not affect the power of the remaining members to execute the duties of the Council. (f)

Travel expenses

Members of the Council shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code. (g)

Director; staff

(1)

Director

The Co-chairs shall appoint a Director. (2)

Staff

The Director, with the approval of the Council, may appoint and fix the pay of additional personnel. (h)

Management

The Council shall be managed by the Council members, the director, and staff in a manner consistent with the purposes of this section. (i)

Other authority

The Council may lease space and acquire personal property to the extent that funds are available. (j)

Self-sufficiency

Not later than the date that is 5 years after the date on which the Council is established, the Council should seek to obtain 100 percent of the funds required to carry out this section through partnerships, cash contributions, membership fees, and in-kind support. (k)

Reports

Not later than 1 year after the date of the first meeting of the Council, and annually thereafter, the Council shall make public and transmit to the Congress and the Small Business Administration a report— (1)detailing the actions the Council has taken during the previous year in fulfillment of the duties described in subsection (b), (2)making recommendations related to policies that would further encourage the development of the private sector in qualified sub-Saharan African countries, particularly with regard to qualified small and medium African enterprises, and (3)including a budget proposal for the next fiscal year.

8.

Coordination with African Development Bank

(a)

African Entrepreneurs Program

The Administrator of the Small Business Administration should provide the Secretary of the Treasury with information pertaining to how African Development Bank programs can be used to improve the 21st Century African Entrepreneurs Program, established pursuant to section 22(g) of the Small Business Act (15 U.S.C. 649(g)). The Secretary of the Treasury should instruct the United States Executive Director at the African Development Bank to urge the African Development Bank to use programs of the African Development Bank in this manner. (b)

Value-added agriculture loan facility

The Secretary of Agriculture should provide the Secretary of the Treasury with information pertaining to how the establishment of a value-added agricultural loan facility can be used to support the development of qualified small and medium African enterprises devoted to the processing of agricultural commodities. The Secretary of the Treasury should instruct the United States Executive Director at the African Development Bank to urge the African Development Bank to use loan programs of the African Development Bank to foster the establishment of such a facility. (c)

Feasibility studies

(1)The Secretary of Agriculture, through the Foreign Agricultural Service, should provide technical assistance to farmers in qualified sub-Saharan African countries in the development of pre-feasibility studies to identify potentially profitable projects for submission to the African Development Bank. (2)The United States Trade Development Agency should provide assistance in the preparation of final feasibility studies for projects to be submitted to African Development Bank under the United States Department of Agriculture-African Development Bank loan facility program. (d)

Technical assistance for agricultural facilities

The Secretary of Agriculture, through the Foreign Agricultural Service, should provide technical assistance to farmers in qualified sub-Saharan African countries who are funded by the African Development Bank loan facility.

9.

Activities to strengthen fundamental labor rights

(a)

In general

The Secretary of State should undertake activities to strengthen internationally recognized labor rights and standards in qualified sub-Saharan African countries by— (1)ensuring that governments and businesses in qualified sub-Saharan African countries are aware of their obligations (through membership in the International Labor Organization (ILO) as well as under United States trade preference programs such as the generalized system of preferences and the African Growth and Opportunity Act) to respect, promote, and realize the international labor standards established by the ILO, (2)monitoring the enforcement of labor laws in qualified sub-Saharan African countries, including labor laws relating to workers’ rights to free association, prohibitions on child labor, forced labor, and discrimination, safety in the work environment, workplace standards laws regulating minimum wage and hours of work, and collective bargaining, through ensuring, among other things, that reporting on labor rights at United States missions is a priority, and (3)providing technical assistance to enhance enforcement of labor laws in qualified sub-Saharan African countries and for institutional capacity building of trade unions to increase their capabilities to represent workers at workplaces and with their governments. (b)

Definitions

For purposes of section 7, 8, and 9 of this Act: (1)

Qualified sub-Saharan African country

The term qualified sub-Saharan African country means a beneficiary sub-Saharan African country described in section 506A(c) of the Trade Act of 1974 (19 U.S.C. 2466a). (2)

Qualified small and medium African enterprise

The term qualified small and medium African enterprise means a business in a qualified sub-Saharan African country that meet the standards developed for such country by the Administrator of the Small Business Administration, in cooperation with the Administrator of the United States Agency for International Development, pursuant to section 22(g)(4) of the Small Business Act (15 U.S.C. 649).

10.

Assistance for qualified small and medium African enterprises

(a)

In general

Chapter 10 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2293 et seq.) is amended by inserting after section 496 the following new section:

496A.

Assistance for qualified small and medium African enterprises

(a)

Authorization

The President, acting through the Administrator of the United States Agency for International Development, is authorized to provide assistance, on such terms and conditions as the President may determine, for qualified small and medium African enterprises. (b)

Activities supported

Assistance provided under subsection (a) shall, to the maximum extent practicable, be used to carry out the following activities: (1)

Youth entrepreneurship programs

Activities to establish youth entrepreneurship training programs in schools or through community partnerships with business and youth organizations in qualified sub-Saharan African countries to promote economic skills, ethics, integrity, and healthy life skills among youth in such countries. Such activities may include providing assistance through United States and international youth organizations located in qualified sub-Saharan African countries and ministries of education, local schools, businesses, and youth groups to— (A)teach basic concepts of business economics and free enterprise and the relevance of education for such youth to improving the quality of their lives; (B)teach basic concepts of good governance, the rule of law, human rights, and citizenship as they relate to national development; (C)assist youth to make decisions about their educational and professional future and develop communication skills that are vital to succeed in the domestic, regional, and international business world; (D)develop a specialized curriculum for youth in rural and peri-urban areas and utilize, whenever possible, business and community volunteers to deliver such curriculum; and (E)organize student-led enterprises. (2)

Anti-corruption initiatives

Activities that combat corruption, improve transparency and accountability, and promote other forms of good governance and management in qualified sub-Saharan African countries. Such activities may include— (A)providing technical assistance to governments of qualified sub-Saharan African countries that are implementing the United Nations Convention against Corruption, including assistance to combat anti-competitive, unethical, and corrupt activities, including protection against actions that may distort or inhibit transparency in market mechanisms and impair the development of qualified small and medium African enterprises; (B)providing assistance to develop a legal framework for commercial transactions that fosters business practices that promote transparent, ethical, and competitive behavior in the economic sector, such as commercial codes that incorporate international standards and protection of national and international intellectual property rights and core labor standards; and (C)providing training and technical assistance relating to drafting of anti-corruption, privatization, and competitive statutory and administrative codes, and providing technical assistance to ministries and agencies implementing anti-corruption laws and regulations. (c)

Definitions

In this section: (1)

Qualified sub-Saharan African country

The term qualified sub-Saharan African country means a beneficiary sub-Saharan African country described in section 506A(c) of the Trade Act of 1974 (19 U.S.C. 2466a). (2)

Qualified small and medium African enterprise

The term qualified small and medium African enterprise means a business in a qualified sub-Saharan African country that meet the standards developed for such country by the Administrator of the Small Business Administration, in cooperation with the Administrator of the United States Agency for International Development, pursuant to section 22(g)(4) of the Small Business Act (15 U.S.C. 649).

. (b)

Conforming amendment

Section 497 of the Foreign Assistance Act of 1961 (22 U.S.C. 2294) is amended in the second sentence by adding at the end before the period the following: or section 496A. (c)

Authorization of appropriations

For purposes of carrying out this section, there are authorized to be appropriated $5,000,000 for each of fiscal years 2007 and 2008.

11.

Report

Not later than 6 months after the date of the enactment of this Act, the President shall transmit to Congress a report including legislative recommendations for the creation of American jobs, particularly in economically disadvantaged areas, by utilizing opportunities that arise from an increase in United States imports.