[Congressional Record Volume 143, Number 36 (Wednesday, March 19, 1997)]
[Extensions of Remarks]
[Pages E517-E518]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             THE MICROCREDIT FOR SELF-RELIANCE ACT OF 1997

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                        Thursday, March 19, 1997

  Mr. HOUGHTON. Mr. Speaker, I rise today with my good friend and 
colleague, Tony Hall, and a bipartisan group of over 20 other Members, 
to introduce the Microcredit for Self-Reliance Act of 1997.
  The goal of this bill is to help impoverished people around the world 
achieve dignity and economic independence for themselves and their 
families through microenterprise--a program designed to help provide 
people with small, low interest loans to start a business and bring 
themselves out of poverty.
  Specifically, the Microcredit for Self-Reliance Act is a vehicle 
through which the United

[[Page E518]]

States can give a higher priority to microcredit internationally, and 
work toward the goal of the 1997 Microcredit Summit--to reach 100 
million of the world's poorest families, especially the women of those 
families, with credit for self-employment and financial and business 
services by 2005.
  Our bill builds upon the successes of the Grameen Bank of Bangladesh, 
which was started by Mohammed Yunus in 1983. I'd recommend that each of 
my colleagues read the book ``Give Us Credit,'' by Alex Counts, which 
eloquently tells the story of how Mr. Yunus brought so many of his 
fellow citizens out of poverty through microlending.
  The U.S. Agency for International Development [USAID], under the able 
leadership of Brian Atwood, has also been involved in microenterprise 
for awhile now, and has been doing a good job at it. Also, groups such 
as Results, a grass roots support group headed up by Sam Daley-Harris, 
has worked tirelessly in promoting the ideals of microcredit, 
culminating in their successful Microcredit Summit, which was held here 
in Washington last month.
  Mr. Speaker, this bill calls for no new funds. Rather, we're calling 
for more of our existing funds to be used to support microcredit 
programs. Specifically, the bill asks for $170 million for fiscal year 
1998 and $180 million for fiscal year 1999 to be allocated to USAID for 
microcredit assistance. Half these resources, at least $85 million for 
fiscal year 1998, and $90 million for fiscal 1999, would go to 
institutions serving the poorest 50 percent of those living below the 
poverty line, especially women, with loans under $300.
  In addition, we'd like to provide $20 million for special initiative 
within the International Fund for Agricultural Development [IFAD] to 
support community based micro-finance institutions that serve the very 
poor in rural areas.
  Why Microcredit? Well, the World Health Organization reports that 
poverty is the leading cause of death worldwide. Over 1 billion 
people--or one-fifth the world's population--live in extreme poverty. 
Microcredit is one of the most effective antipoverty tools in 
existence, allowing people to eradicate poverty and hunger in their own 
lives.
  The microcredit program enjoys broad bipartisan support. These 
programs not only help millions work their own way out of poverty, but 
also recycle foreign aid dollars through loan repayments. Microcredit 
loans are self-sustainable. They are easily replicable and powerful 
vehicles for social development.
  Mr. Speaker, I hope you'll join me in support of the Microcredit for 
Self Reliance Act of 1997.

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