1.
This Act may be cited as the
Social Investment and Economic
Development Fund for the Americas Act of 2005
.
2.
Findings; statement of policy
(a)
Congress finds the following:
(1)
The historic economic, political, cultural, and geographic
relationships among the countries of the Western Hemisphere are unique and of
continuing special significance to the United States.
(2)
The interests of the countries of the Western 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, the 2001 Summit in Quebec City,
Canada, and the 2004 Special Summit in Monterrey, Mexico, the heads of state of
the countries of the Western Hemisphere accepted the formidable challenge of
economic and social integration in and between their respective
countries.
(4)
To make progress toward economic and social integration, there is
a compelling need to focus on the social development of the people of the
Americas 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 democracy and the rule of law and
promote regional economic integration and trade in the region.
(6)
The challenge of achieving economic integration between one of
the world’s most developed economies and some of the poorest and most
vulnerable countries requires a special effort to promote social equality,
develop skills, and modernize the infrastructure 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 historic and persistent highly unequal distribution of
wealth. Latin America suffers from the most unequal distribution of wealth in
the world with huge inequities in the distribution of assets including
education, 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 poverty. 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, people with disabilities, and rural populations, are
socially excluded and suffer from poverty, stigma, and discrimination.
(10)
Democratic values are dominant throughout the Americas, and
nearly all governments in the region have come to power through democratic
elections.
(11)
Nonetheless, existing democratic governments and their
constituent institutions remain fragile and face critical challenges including
effective democratic civilian authority over these institutions, including the
military, the consolidation or establishment 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, prosperity, 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 institutions 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 political policies which are necessary to achieve equitable 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 Inter-American
Agency for Cooperation and Development with mobilizing private-public sector
partnerships among industry and civil society to help achieve equitable
development objectives.
(16)
By supporting the purposes and objectives of development and
applying such purposes and objectives to the Americas, a Social Investment and
Economic Development Fund for the Americas has the potential to advance the
national interests of the United States and directly improve the lives of the
poor and marginalized groups, encourage broad-based economic growth while
protecting the environment, build human capital and knowledge, support
meaningful participation in democracy, and promote peace and justice in the
Americas.
(b)
It is the policy of the United States—
(1)
to promote market-based principles, economic 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 investing in human capital,
specifically targeting education, health and disease prevention, nutrition, and
housing;
(C)
strengthening the rule of law through improved efficiency and
transparency in government services and increasing civil society participation
in government; 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 interests 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
meaningful participation in democratic institutions and processes, and promote
peace and justice in the Americas.
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:
13
Social Investment and Economic Development Fund for the
Americas
499H.
Authorization of assistance
(a)
It is the policy of the United States—
(1)
to promote market-based principles, economic 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 investing in human capital,
specifically targeting education, health and disease prevention, nutrition, and
housing;
(C)
strengthening the rule of law through improved efficiency and
transparency in government services and increasing civil society participation
in government; 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 interests 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 meaningful participation in democratic
institutions and processes, and promote peace and justice in the
Americas.
(b)
The President, acting through the Administrator of the United
States Agency for International 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, nutrition, and
housing;
(3)
strengthening the rule of law through improved efficiency and
transparency in government services and increasing civil society participation
in government; and
(4)
reducing poverty and eliminating the exclusion of marginalized
populations, including people of African descent, indigenous groups, women, and
people with disabilities.
(c)
Assistance under this chapter may be provided on such other
terms and conditions as the President may determine, consistent with the goal
of promoting economic and social development.
499I.
Technical review committee
(a)
There is established within the United States Agency for
International Development a technical review committee.
(b)
(1)The President, by and with the advice and consent of the
Senate, shall appoint to serve on the technical review committee—
(A)
individuals with technical expertise with respect to the
development projects, including grassroots development of Latin America and the
Caribbean; and
(B)
citizens of the United States with technical expertise with
respect to development projects and business experience.
(2)Technical expertise shall be the sole criterion in
making appointments to the technical review committee.
(c)
The technical review committee shall review all projects
proposed for funding using assistance provided under section 499H(a), and make
recommendations 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)
A member 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.
499J.
(a)A country that receives assistance under this chapter
shall establish a Consultative Committee to make recommendations regarding how
such assistance should be used to carry out the policy set out in section
499H(a).
(b)A
Consultative Committee should include individuals from civil society
organizations that represent or have experience in working in the
following:
(1)
Marginalized populations.
(2)Trade and small
farmer unions.
(3)Rural development
and agrarian reform.
(4)Microenterprise
and grassroots development.
(5)Access to
government social services.
(6)Rule of law and
government reform.
(c)A
Consultative Committee for a country shall—
(1)make
recommendations to the technical review committee established under section
499I and to the appropriate country mission of the United States Agency for
International Development on projects proposed to receive assistance under
section 499H(a) that affect such country;
(2)have access
documents and other information related to project proposals and funding
decisions that affect such country; and
(3)develop and
publish rules and procedures under which the Committee will carry out its
duties.
(d)A member of the Consultative Committee may not be
permitted to review an application submitted by an organization with which the
member has been or is affiliated.
499K.
The President shall prepare
and transmit to the Committee on Foreign Relations of the Senate, the Committee
on International Relations of the House of Representatives, and other
appropriate congressional committees 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.
499L.
Authorization of appropriations
(a)
There are authorized to be appropriated to carry out this
chapter $250,000,000 for each of the fiscal years 2006 through 2010.
(b)
Amounts appropriated 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 expended; and
(3)
are in addition to amounts otherwise available for such
purposes.
(c)
Not more than 7 percent of the amounts appropriated pursuant to
subsection (a) for a fiscal year may be used for administrative
expenses.
.
4.
Amendment to the Inter-American Development Bank Act
The Inter-American Development
Bank Act (22
U.S.C. 283 et seq.) is amended by adding at the end the
following:
39.
Social Investment and Economic Development Fund for the
Americas
(a)
The Secretary of the Treasury shall instruct the United States
Executive Director of 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 Development 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
consistent 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 establishment of such an account, and the operation and administration
of the account consistent with subsection (b).
(b)
(1)
The Fund shall be used to provide assistance to reduce poverty
and foster increased 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 investing in human capital,
specifically targeting education, health and disease prevention, nutrition, and
housing;
(C)
strengthening the rule of law through improved efficiency and
transparency in government services and increasing civil society participation
in government; 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)
The Fund shall have a technical review committee.
(B)
(i)The Board of Executive Directors of the Bank shall
appoint to serve on the technical review committee individuals with technical
expertise with respect to the development of Latin America and the
Caribbean.
(ii)Technical expertise shall be the sole criterion in
making appointments to the technical review committee.
(C)
The technical review committee shall review all projects
proposed for funding by the Fund, and make recommendations to the Board of
Executive Directors of the Bank with respect to the guidelines to be used in
evaluating project proposals and the suitability of the proposed projects for
funding.
(D)
A member 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 once each year, the Board of Executive
Directors of the Bank shall review and make decisions on applications for
projects to be funded by the Fund, in accordance with procedures which provide
for transparency. The Board of Executive Directors shall provide advance notice
to all interested parties of any date on which such a review will be
conducted.
(5)
(A)Each country that receives assistance under this section
shall establish a Consultative Committee to make recommendations regarding how
such assistance should be used to carry out the policy set out in section 2(b)
of the Social Investment and Economic Development Fund for the Americas Act of
2005.
(B)A
Consultative Committee should include individuals from civil society
organizations that represent or have experience in the following:
(i)
Marginalized populations.
(ii)Trade and small
farmer unions.
(iii)Rural
development and agrarian reform.
(iv)Microenterprise
and grassroots development.
(v)Access to
government social services.
(vi)Rule of law and
government reform.
(C)A
Consultative Committee in a country shall—
(i)make
recommendations to the technical review committee established under paragraph
(3) and appropriate country representative of the Bank on projects to receive
assistance provided under this section that affect such country;
(ii)have access
documents and other information related to project proposals and funding
decisions that affect such country; and
(iii)develop and
publish rules and procedures under which the Committee will carry out its
duties.
(D)A member of a Consultative Committee may not be
permitted to review an application submitted by an organization with which the
member has been or is affiliated.
(c)
To the extent and in the amounts provided in advance in
appropriations Acts, the United States Governor of the Bank may contribute
$1,250,000,000 to the Fund.
(d)
Limitations on authorization of appropriations
(1)
For the contribution authorized by subsection (c), there are
authorized to be appropriated for payment to the Secretary of the Treasury
$250,000,000 for each fiscal year beginning with the fiscal year in which the
resolution described in subsection (a) is adopted.
(2)
Amounts appropriated pursuant to paragraph (1)—
(A)
are authorized to remain available until expended; and
(B)
are in addition to amounts otherwise available for such
purposes.
(3)
Not more than 7 percent of the amounts appropriated pursuant to
paragraph (1) for a fiscal year may be used for administrative expenses.
.
5.It is the sense of
Congress that—
(1)the countries of the Western Hemisphere
should collectively provide assistance equal to the amount of United States
bilateral assistance provided under chapter 13 of part I of the
Foreign Assistance Act of 1961, as
added by section 3 of this Act, and multilateral assistance provided by the
Social Investment and Economic Development Fund for the Americas under section
39 of the Inter-American Development Bank Act, as added by section 4 of this
Act, for the same purpose for which such assistance was provided;
(2)funds authorized
to be appropriated to carry out this Act or the amendments made by this Act
should be in addition to funds otherwise made available on an annual basis to
countries in the Americas pursuant to other United States foreign assistance
programs; and
(3)it should be the
policy of the United States to seek to increase the amount of assistance
provided to the countries of the Americas from the United States and other
members of the Inter-American Development Bank for a fiscal year beginning
after the date of the enactment of this Act to an amount that is more than such
amount provided during fiscal years beginning prior to such date.