[Congressional Record Volume 143, Number 157 (Sunday, November 9, 1997)]
[House]
[Pages H10504-H10509]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               MICROCREDIT FOR SELF-RELIANCE ACT OF 1997

  Mr. GILMAN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1129) to establish a program to provide assistance for 
programs of credit and other assistance for microenterprises in 
developing countries, and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 1129

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page H10505]]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Microcredit for Self-
     Reliance Act of 1997''.

     SEC. 2. FINDINGS AND DECLARATIONS OF POLICY.

       The Congress makes the following findings and declarations:
       (1) More than 1,000,000,000 people in the developing world 
     are living in severe poverty.
       (2) According to the United Nations Children's Fund 
     (UNICEF), mortality for children under the age of 5 averages 
     100 child deaths per thousand for all developing countries, 
     with nearly double that rate in the poorest countries.
       (3) Nearly 35,000 children die each day from largely 
     preventable malnutrition and disease.
       (4)(A) Women in poverty generally have larger work loads, 
     and less access to educational and economic opportunities 
     than their male counterparts.
       (B) Directly aiding the poorest of the poor, especially 
     women, in the developing world has a positive effect not only 
     on family incomes, but also on child nutrition, health and 
     education, as women in particular reinvest income in their 
     families.
       (5)(A) The poor in the developing world, particularly 
     women, generally lack stable employment and social safety 
     nets.
       (B) Many turn to self-employment to generate a substantial 
     portion of their livelihood.
       (C) These poor entrepreneurs are often trapped in poverty 
     because they cannot obtain credit at reasonable rates to 
     build their asset base or expand their otherwise viable self-
     employment activities.
       (D) Many of the poor are forced to pay interest rates as 
     high as 10 percent per day to money lenders.
       (6)(A) On February 2-4, 1997, a global microcredit summit 
     was held in Washington, District of Columbia, to launch a 
     plan to expand access to credit for self-employment and other 
     financial and business services to 100,000,000 of the world's 
     poorest families, especially the women of those families, by 
     2005.
       (B) With five to a family, achieving this goal will mean 
     that the benefits of microcredit will thereby reach nearly 
     half of the world's more than 1,000,000,000 absolute poor.
       (7)(A) The poor are able to expand their incomes and their 
     businesses dramatically when they can access loans at 
     reasonable interest rates.
       (B) Through the development of self-sustaining microcredit 
     programs, poor people themselves can lead the fight against 
     hunger and poverty.
       (8)(A) Nongovernmental organizations such as the Grameen 
     Bank, Accion International, and the Foundation for 
     International Community Assistance (FINCA) have been 
     successful in lending directly to the very poor.
       (B) These institutions generate repayment rates averaging 
     95 percent or higher, demonstrating the bankability of the 
     poorest.
       (C) International organizations such as the International 
     Fund for Agricultural Development (IFAD) and the United 
     Nations Development Program (UNDP) have demonstrated success 
     in supporting microcredit programs.
       (9)(A) Microcredit institutions not only reduce poverty, 
     but also reduce the dependency on foreign assistance.
       (B) Interest income on a credit portfolio can be used to 
     pay recurring institutional costs, assuring the long-term 
     sustainability of development assistance.
       (10) Microcredit institutions leverage foreign assistance 
     resources because loans are recycled, generating new benefits 
     to program participants.
       (11) The development of sustainable microcredit 
     institutions which provide credit and training, and mobilize 
     domestic savings, are critical components to a global 
     strategy of poverty reduction and broad based economic 
     development.
       (12)(A) In 1994, the United States Agency for International 
     Development launched a microenterprise initiative in 
     partnership with the Congress.
       (B) The initiative committed to expanding funding for the 
     microenterprise programs of the Agency, and set a goal that, 
     by the end of fiscal year 1996, half of all microenterprise 
     resources would support programs and institutions providing 
     credit to the poorest, with loans under $300.
       (C) In order to achieve the goal of the microcredit summit, 
     increased investment in microcredit institutions serving the 
     poorest will be critical.
       (13) Providing the United States share of the global 
     investment needed to achieve the goal of the microcredit 
     summit will require only a small increase in United States 
     funding for international microcredit programs, with an 
     increased focus on institutions serving the poorest.
       (14)(A) In order to reach tens of millions of the poorest 
     with microcredit, it is crucial to expand and replicate 
     successful microcredit institutions.
       (B) These institutions need assistance in developing their 
     institutional capacity to expand their services and tap 
     commercial sources of capital.
       (15) Nongovernmental organizations have demonstrated 
     competence in developing networks of local microcredit 
     institutions so that they reach large numbers of the very 
     poor, and achieve financial sustainability.
       (16) Recognizing that the United States Agency for 
     International Development has developed very effective 
     partnerships with nongovernmental organizations, and that the 
     Agency will have fewer missions to carry out its work, the 
     Agency should place priority on investing in these 
     nongovernmental network institutions through the central 
     funding mechanisms of the Agency.
       (17) By expanding and replicating successful microcredit 
     institutions, it should be possible to create a global 
     infrastructure to provide financial services to the world's 
     poorest families.
       (18)(A) The United States Agency for International 
     Development can provide leadership to other bilateral and 
     multilateral development agencies as such agencies expand 
     their support to the microenterprise sector.
       (B) The United States Agency for International Development 
     should seek to improve coordination of donor efforts at the 
     operational level to promote the use of best practices in the 
     provision of financial services to the poor and to ensure 
     that adequate institutional capacity is developed.
       (19) Through expanded support for microcredit, especially 
     credit for the poorest, the United States Agency for 
     International Development can continue to play a leadership 
     role in the global effort to expand financial services and 
     opportunity to 100,000,000 of the poorest families on the 
     planet.

     SEC. 3. PURPOSES.

       The purposes of this Act are--
       (1) to provide for the continuation and expansion of the 
     commitment of the United States Agency for International 
     Development to the development of microenterprise 
     institutions;
       (2) to make microenterprise development the centerpiece of 
     the overall economic growth strategy of the United States 
     Agency for International Development;
       (3) to support and develop the capacity of United States 
     and indigenous nongovernmental organization intermediaries to 
     provide credit, savings, and training services to 
     microentrepreneurs;
       (4) to increase the amount of assistance devoted to credit 
     activities designed to reach the poorest sector in developing 
     countries, and to improve the access of the poorest, 
     particularly women, to microenterprise credit in developing 
     countries; and
       (5) to encourage the United States Agency for International 
     Development to provide global leadership in promoting 
     microenterprise for the poorest among bilateral and 
     multilateral donors.

     SEC. 4. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

       Section 108 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151f) is amended to read as follows:

     ``SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

       ``(a) Findings and Policy.--The Congress finds and declares 
     that--
       ``(1) the development of micro- and small enterprise, 
     including cooperatives, is a vital factor in the stable 
     growth of developing countries and in the development and 
     stability of a free, open, and equitable international 
     economic system;
       ``(2) it is, therefore, in the best interests of the United 
     States to assist the development of the private sector in 
     developing countries and to engage the United States private 
     sector in that process;
       ``(3) the support of private enterprise can be served by 
     programs providing credit, training, and technical assistance 
     for the benefit of micro- and small enterprises; and
       ``(4) programs that provide credit, training, and technical 
     assistance to private institutions can serve as a valuable 
     complement to grant assistance provided for the purpose of 
     benefiting micro- and small private enterprise.
       ``(b) Program.--To carry out the policy set forth in 
     subsection (a), the President is authorized to provide 
     assistance to increase the availability of credit to micro- 
     and small enterprises lacking full access to credit, 
     including through--
       ``(1) loans and guarantees to credit institutions for the 
     purpose of expanding the availability of credit to micro- and 
     small enterprises;
       ``(2) training programs for lenders in order to enable them 
     to better meet the credit needs of micro- and small 
     entrepreneurs; and
       ``(3) training programs for micro- and small entrepreneurs 
     in order to enable them to make better use of credit and to 
     better manage their enterprises.
       ``(c) Eligibility Criteria.--The Administrator of the 
     United States Agency for International Development shall 
     establish criteria for determining which entities described 
     in subsection (b) are eligible to carry out activities, with 
     respect to microenterprises, assisted under this section. 
     Such criteria may include the following:
       ``(1) The extent to which the recipients of credit from the 
     entity do not have access to the local formal financial 
     sector.
       ``(2) The extent to which the recipients of credit from the 
     entity are among the poorest people in the country.
       ``(3) The extent to which the entity is oriented toward 
     working directly with poor women.
       ``(4) The extent to which the entity recovers its cost of 
     lending to the poor.
       ``(5) The extent to which the entity implements a plan to 
     become financially sustainable.''.

     SEC. 5. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

       Chapter 1 of 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 new section:

[[Page H10506]]

     ``SEC. 129. MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE.

       ``(a) Authorization.--(1) In carrying out this part, the 
     Administrator of the United States Agency for International 
     Development is authorized to provide grant assistance for 
     programs of credit and other assistance for microenterprises 
     in developing countries.
       ``(2) Assistance authorized under paragraph (1) shall be 
     provided through organizations that have a capacity to 
     develop and implement microenterprise programs, including 
     particularly--
       ``(A) United States and indigenous private and voluntary 
     organizations;
       ``(B) United States and indigenous credit unions and 
     cooperative organizations; or
       ``(C) other indigenous governmental and nongovernmental 
     organizations.
       ``(3) Approximately one-half of the credit assistance 
     authorized under paragraph (1) shall be used for poverty 
     lending programs, including the poverty lending portion of 
     mixed programs. Such programs--
       ``(A) shall meet the needs of the very poor members of 
     society, particularly poor women; and
       ``(B) should provide loans of $300 or less in 1995 United 
     States dollars to such poor members of society.
       ``(4) The Administrator should continue support for 
     mechanisms that--
       ``(A) provide technical support for field missions;
       ``(B) strengthen the institutional development of the 
     intermediary organizations described in paragraph (2); and
       ``(C) share information relating to the provision of 
     assistance authorized under paragraph (1) between such field 
     missions and intermediary organizations.
       ``(b) Monitoring System.--In order to maximize the 
     sustainable development impact of the assistance authorized 
     under subsection (a)(1), the Administrator shall establish a 
     monitoring system that--
       ``(1) establishes performance goals for such assistance and 
     expresses such goals in an objective and quantifiable form, 
     to the extent feasible;
       ``(2) establishes performance indicators to be used in 
     measuring or assessing the achievement of the goals and 
     objectives of such assistance; and
       ``(3) provides a basis for recommendations for adjustments 
     to such assistance to enhance the sustainable development 
     impact of such assistance, particularly the impact of such 
     assistance on the very poor, particularly poor women.''.

     SEC. 6. MULTILATERAL COOPERATION WITH THE INTERNATIONAL FUND 
                   FOR AGRICULTURAL DEVELOPMENT.

       (a) Findings.--The Congress finds the following:
       (1)(A) The International Fund for Agricultural Development 
     (``IFAD'') has as its mission serving the poorest of the poor 
     in rural areas.
       (B) IFAD has had two decades of experience in assisting the 
     economic development of the rural poor.
       (2) IFAD has been a significant supporter of 
     microenterprise and other microfinance activities for the 
     rural poor almost since its inception and it was the first 
     international institution to assist the Grameen Bank.
       (3) IFAD can make a significant contribution to developing 
     a global network of sustainable microenterprise and other 
     microfinance institutions which serve the very poor through 
     support for nongovernmental organizations and other 
     community-based microcredit institutions.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) the United States Agency for International Development, 
     in carrying out sections 108 and 129 of the Foreign 
     Assistance Act of 1961, as added by sections 4 and 5 of this 
     Act, respectively, shall seek to cooperate with IFAD in order 
     to compliment and expand the activities of IFAD, especially 
     with respect to institutional development; and
       (2) the United States should continue to support and 
     contribute to the activities of IFAD, especially activities 
     related to microenterprise and microfinance, including the 
     Microfinance Capacity Building Grant Initiative.

     SEC. 7. UNITED NATIONS DEVELOPMENT PROGRAM'S MICROSTART 
                   PROGRAM.

       It is the sense of the Congress that--
       (1) the Microstart Program established by the United 
     Nations Development Program (UNDP) represents an important 
     new initiative; and
       (2) the President should instruct the United States 
     representative to the United Nations to use the voice and 
     vote of the United States to support the Microstart Program 
     of the United Nations Development Program.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York [Mr. Gilman] and the gentleman from Connecticut [Mr. Gejdenson] 
each will control 20 minutes.
  The Chair recognizes the gentleman from New York [Mr. Gilman].


                             General Leave

  Mr. GILMAN. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on this measure.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. GILMAN. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, H.R. 1129, the Microcredit for Self-Reliance 
Act of 1997, was introduced last March by a distinguished member of our 
committee, the gentleman from New York [Mr. Houghton], along with the 
gentleman from Ohio [Mr. Hall]. The bill is an impressive work that has 
gained over 90 cosponsors from both sides of the aisle. I want to thank 
the gentleman from New York [Mr. Houghton] and the gentleman from Ohio 
[Mr. Hall] for their work on this important issue. They have become the 
best allies of my colleague from Connecticut [Mr. Gejdenson] and myself 
on our work to promote microenterprise development.
  Mr. Speaker, over the years many of us have become aware of Dr. 
Yunus's Grameen Bank and the 98 percent repayment rate that his bank 
has received for loans to the poorest of the poor who never had any 
prior access to credit. Microenterprise lending has now become 
widespread throughout the world, helping people lift themselves out of 
poverty. This example has now hit home where microcredit activities are 
lifting Americans out of poverty in cities such as Boston, New York, 
and Los Angeles. I especially commend the gentlewoman from Florida [Ms. 
Ros-Lehtinen] for her work on this issue.
  Two years ago the gentleman from Connecticut [Mr. Gejdenson] and I 
joined together to pass the Microenterprise Act. After weeks of 
negotiations, we were finally able to hammer out an agreement 
acceptable to the administration, to Congress, and to outside groups, 
including Results and the Microenterprise Coalition. That bill passed 
the House with flying colors, but regrettably was held up in the Senate 
by 1 Senator who linked the bill to extraneous issues.
  Today the gentleman from Connecticut [Mr. Gejdenson] and I are asking 
the House to pass this bill once again and to work with our colleagues 
in the Senate to seek its adoption in the other body.
  In committee, we amended the initial bill to delete any earmarks and 
inserted the text of the Microenterprise Act that enjoys the support of 
both the administration and the Senate Committee on Foreign Affairs, 
and while the gentleman from Connecticut [Mr. Gejdenson] and I would 
want AID to spend more money on microenterprise activities, we 
recognize at this late date that we have to work with the 
administration in order to get a bill hotlined in the Senate and signed 
by the President. We were pleased to welcome the First Lady to our 
Committee on International Relations just this past summer to 
rededicate ourselves to AID's microenterprise initiative.
  In summary, the bill before us does a number of important things. It 
underscores microenterprise activities as one of the most important 
parts of our development assistance programs. It rewrites a long 
defunct section of the Foreign Assistance Act to govern microenterprise 
credits. These credits should focus on the poor, especially on women. 
It adds a section to the Foreign Assistance Act governing 
microenterprise grants. It clearly states that one-half of the credit 
assistance should be provided in loans of $300 or less and requires AID 
to report back to us on just how they are reaching the poorest of the 
poor.
  Finally, it commends other leading micro-finance organizations like 
the International Fund for Agricultural Development and the United 
Nations Development Program for taking the multilateral lead in the 
microcredit world. Earlier this year, we came together at the 
Microcredit Summit in Washington, the first summit ever organized by an 
NGO. At that time, we dedicated ourselves to providing credit to half 
the world's poor in the next decade. AID's funding for microcredit is 
currently falling short of that goal, and we are hoping that this bill 
will help reenergize their efforts and ours to foster this important 
program.
  In sum, I urge the adoption of this measure.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GEJDENSON. Mr. Speaker, I yield such time as he may consume to 
the gentleman from Ohio [Mr. Hall],

[[Page H10507]]

the author of the legislation, a gentleman who has put in a great 
effort, not just here today, but through the years in the area of the 
poor and the needy.
  Mr. HALL of Ohio. Mr. Speaker, I want to thank the gentleman from 
Connecticut [Mr. Gejdenson], for his very kind remarks and certainly 
his leadership on the committee and his work on microenterprise; the 
gentleman from New York [Mr. Gilman], for his work for many years now; 
and the gentleman from Tennessee [Mr. Clement] for his great support, 
the gentlewoman from Florida [Mrs. Ros-Lethinen] for her tremendous 
support on the subcommittee, and certainly the gentleman from New York 
[Mr. Houghton], the chief sponsor of the bill. He has shown great 
leadership on the bill. He is real fighter for programs, as all of 
these Members of Congress are. They are certainly fighters that help 
the poor to help themselves, and there is no better example of such 
assistance than microcredit programs.
  I am a firm believer that if we invest in the poor through programs 
such as microcredit and basic education, child survival types of 
activities and rural development, if we help the poor to gain access to 
the marketplace and share in the benefits of economic growth, the 
returns will justify such investments many times over. In terms of 
political, economic and social stability, they will reap the benefits.

                              {time}  1715

  The bill before us today represents a significant compromise from our 
original proposal. It is certainly not everything we wanted, and in my 
view, we have much more work to do.
  The initial purpose of H.R. 1129 was to show support for a firm U.S. 
commitment to the 1997 microcredit summit goal of reaching 100 million 
of the world's poorest families, especially the women of those 
families. The goal is widely supported by the administration, the World 
Bank and other financial institutions, and many, many world leaders who 
pledged their support at the microcredit summit.
  Not long ago the First Lady came up to the Hill to help kick off 
USAID's renewed commitment to its microenterprise initiative. In that 
spirit our bill called for a greater investment of our foreign aid 
dollars in microcredit projects. The unfortunate irony is that despite 
all of this broad, resounding support, funding is being cut in this 
area. Only $120 million was requested for microcredit programs in 
fiscal year 1998, down from $140 million in 1997.
  I fully understand that cuts in development assistance have made 
tough choices necessary, but many of us have fought hard against 
further cuts in development assistance. I would hope that we have 
reached a point where such cuts have finally bottomed out.
  I would also emphasize that during the period from fiscal year 1988 
through fiscal year 1991, we had a legislative earmark for microcredit 
programs in place. In my view, if an earmark is what it takes to 
maintain adequate funding levels for this important program, and the 
evidence clearly supports that position in this case, then it ought to 
be reinstated.
  I also regret that provisions calling for stronger U.S. support for 
rural microcredit programs implemented by IFAD were dropped from the 
bill. IFAD is a small but effective agency focused uniquely on 
combatting rural poverty and hunger at the grassroots level.
  Despite its shortcomings this bill does, nonetheless, lay important 
groundwork for future strengthening of these programs. It retains small 
but important gains for microcredit programs. So even though I think we 
can and should be doing more in this area, this bill marks an important 
step forward for microcredit programs.
  I certainly urge my colleagues to support it, and I want to thank the 
committee for moving on this bill.
  Mr. GILMAN. Mr. Speaker, I am pleased to yield 3 minutes to the 
gentleman from New York [Mr. Houghton], a member of our committee.
  Mr. HOUGHTON. Mr. Speaker, I would like to stand in strong support of 
H.R. 1129. It is the right bill, it is the right time. It is not enough 
money, but it is as good as we could possibly do under the 
circumstances. I think the direction is absolutely solid, right on. It 
complements the USAID program. I do not think there is any question 
about that. I believe there is no opposition to that.
  Mr. Speaker I would like to, if I could, just mention several names 
of people: Obviously, the gentleman from Ohio, Mr. Hall, has been a 
tremendous sponsor of this; and the gentleman from Connecticut, Mr. 
Gejdenson, and my chairman; the gentleman from New York, Mr. Gilman, 
the gentleman from Indiana, Lee Hamilton, the gentlewoman from Florida, 
Ms. Ileana Ros-Lehtinen, the gentleman from Texas, Mr. Dick Armey, for 
letting us bring this thing to the floor.
  I would also like to mention several other individuals: The gentleman 
from Colorado Mr. Dan Schaefer, the gentleman from California, Mr. 
Esteban Torres, the gentleman from New York, Mr. Jim Walsh, the 
gentleman from Hawaii, Mr. Neil Abercrombie, the gentleman from North 
Carolina, Mr. Mel Watt, the gentleman from Kentucky, Mr. Ron Lewis, the 
gentleman from Michigan, Mr. Dave Bonior, the gentleman from Alaska, 
Mr. Don Young, the gentleman from Washington, Mr. Jim McDermott, the 
gentleman from Ohio, Mr. Steve Chabot, the gentleman from Vermont, Mr. 
Bernie Sanders. Members can see we have a real spectrum of people in 
support here.
  Also there is an important outside group called RESULTS, particularly 
Jo Ann Carter and Leila Nimatallah, who really have promoted this bill 
along and have had a great deal to do with the microcredit summit.
  Mr. Speaker, very briefly, this original bill increased the amount of 
money for USAID. That was not possible because of the budget 
restrictions. It was pared down. Now we have a lesser amount of money. 
The new version of the bill does not provide any additional funds for 
this program.
  But what the bill does is to instruct the people at USAID to the best 
of their ability to ensure that half of these moneys go to people who 
are requiring $300 or less, think of it, $300 or less, to start little 
businesses; really, the poorest of the poor, as the chairman has 
mentioned. It is an absolutely great idea.
  The concept that Mr. Yousef in Bangladesh started is something I 
think that really could have enormous impact in the rest of the world. 
We also have monitoring positions here, and we are going to watch the 
implementation of the program so it does not get out of hand.
  So very briefly, Mr. Speaker, since so much already has been said 
about this, I urge my colleagues to support this bill today. It is a 
truly bipartisan measure.
  Mr. GEJDENSON. Mr. Speaker, I yield 5 minutes to the gentleman from 
Tennessee [Mr. Clement].
  Mr. CLEMENT. Mr. Speaker, I thank the gentleman from Connecticut for 
yielding time to me.
  Mr. Speaker, I rise in strong support of H.R. 1129, the Microcredit 
for Self-Reliance Act of 1997. In particular, I would like to thank my 
friends and colleagues, the gentleman from New York, Mr. Amo Houghton, 
and also the gentleman from Ohio, Mr. Tony Hall, for seeing that the 
issue of microfinance and microcredit receives congressional attention. 
I am a cosponsor of this bill, and very supportive of microcredit and 
the aim of thoughtfully assisting the poor who wish to help themselves.
  Microcredit is a responsible and effective tool in fighting poverty. 
I have heard a number of stories that tell of the successes of 
microcredit. One of many examples is that of a woman in Bangladesh 
whose husband had died. Without any income, she was forced to sell all 
of her possessions to feed her little girl. She was forced to go from 
shack to shack, begging to sleep on the dirt floors of those who were 
barely better off than she.
  A microcredit representative came to her village and told her that 
she could get a loan to help her improve her position; imagine that, a 
woman who had lost her husband, lost all of her possessions, so poor 
that she was forced to beg to live on floors of her neighbors.
  This woman is told that she can have a loan; not a big loan, a loan 
that was under $40. How powerful and empowering is someone saying, I 
have faith in you and we are going to give you a chance. The 
microcredit representative in her community helped her develop a 
business plan. She purchased a hen. She would keep some of the eggs for 
her daughter and herself, and sell the

[[Page H10508]]

rest. Soon she was able to pay off the loan and buy some goats. Now she 
has a small farm and home, all of this from a $40 loan. She was begging 
to live on dirt floors, and because someone was willing to give her a 
small loan, she was able to become a strong contributing member of her 
society.
  There are many stories like this that have been shared by others 
already today. How can we not feel good and want to encourage programs 
such as this? In hearings on this issue, my colleagues on the Committee 
on International Relations were very accepting and positive in their 
discussions of the Houghton-Hall bill.
  Ironically, USAID assistance to microcredit for fiscal year 1998 is 
$20 million less than it was in fiscal year 1994, despite the 
effectiveness of microcredit programs, with loan repayments of over 90 
percent. It seems that the logical step would be an increase, rather 
than a decrease, of our earmarks for microcredit. We must work to 
guarantee that these recommendations be understood as a legislative 
distinction intended to reach those at the very bottom of the economic 
ladder, thereby ensuring we sufficiently reach those with the greatest 
need.
  Having said that, I will support the Gilman compromise bill, noting 
that it is a beginning. More needs to be done to expand and protect 
effective microcredit funding. I look forward to working with my 
colleagues in microcredit initiatives as we work to creatively find 
ways to assist those with the greatest need.
  Mr. GILMAN. Mr. Speaker, I am pleased to yield 1 minute to the 
gentleman from Nebraska [Mr. Bereuter], the chairman of our committee.
  (Mr. BEREUTER asked and was given permission to revise and extend his 
remarks.)
  Mr. BEREUTER. Mr. Speaker, I thank the gentleman from New York for 
yielding me the time.
  Mr. Speaker, I want to speak in strong support of the Houghton 
resolution. I think it is very important in many ways. I know I first 
became familiar with the kind of microenterprise work when FINCA came 
to the Hill and talked about their work in the Central Andes countries. 
We knew, of course, about the Gramine Bank and its wonderful work.
  The amount of money that really makes a difference, a very small 
loan, usually very rapidly repaid, can really turn around a person and 
a family's life. I think we ought to be spending more of our resources 
here. It is a big bargain.
  I commend the gentleman for his effort, and all of the people who 
have supported this legislation which the gentleman from New York [Mr. 
Houghton] generously listed, and the many Members who are very 
supportive of this legislation. I urge its strong support.
  Mr. GEJDENSON. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I would like to say a few words myself, obviously to 
commend the participants, the chairman of the committee, the gentleman 
from New York [Mr. Houghton] and the gentleman from Ohio [Mr. Hall], 
and others who have been involved in this; also, the First Lady, for 
coming here to renew our commitment to microenterprise loans, and 
clearly Mr. Atwood, who has done a spectacular job with this program. 
Without Mr. Atwood's help on this and leadership, we would not be where 
we are today.
  I would like to take one moment to tell a family story. My family 
came to this country in 1950. My parents had survived Hitler and 
Stalin. I was born in a refugee camp run by the United Nations in 
Germany. We got to New York in October 1949. My father spent a little 
time in New York and in Boston, the family did, and he wanted to work 
for himself.
  There was an organization called the Gmeeloos Hessed that gave no-
interest loans under the assumption that when you made it, you paid it 
back and kicked in a little for the next folks. That enabled us to buy 
the dairy farm that my family still lives on.
  When we look around globally, there is probably no program that this 
country has ever been involved in that has really had the kind of 
positive impact in so many ways, not just for the individuals who get 
the loan, but what we find is many of these loans, like from the 
Gramine Bank, end up going to women, with a repayment rate far higher 
than loans that go to people in very high incomes. The repayment rate 
here is above 90 percent.
  What we find is oftentimes these women end up bringing their husbands 
into the business because they need assistance, and as a result of that 
they end up decreasing the surplus of day laborers, which means 
everybody in the village does a little better.
  So again, Mr. Speaker, I would say to the gentleman from Nebraska 
[Mr. Bereuter], the gentleman from New York [Mr. Houghton], and all our 
friends on both sides of the aisle, this is a great program. It is 
something that we as Americans can be very proud of that we continue to 
do this.
  Mr. Speaker, I yield such time as she may consume to the gentlewoman 
from Texas [Ms. Jackson-Lee].
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the kind gentleman 
from Connecticut for yielding time to me. I know his passion. I 
appreciate the leadership of the chairman of the committee, the 
gentleman from New York [Mr. Gilman], on this issue as well.
  Mr. Speaker, let me talk from personal experience, for I think today 
being a day that many Americans gather to worship, there is a parable, 
if you will, that is somewhat similar to a discussion that many have 
about how we help those who help themselves. Certainly there is the 
issue of how Jesus fed the multitude at the mountain, taking a couple 
of fishes and loaves of bread and multiplying it into serving a 
multitude of people.
  There is also a phenomenon that says, it is better to teach someone 
how to fish than to give them the fish.

                              {time}  1730

  This is what this program represents. These microloans are a 
statement of self-reliance. They are, in fact, a strong response to 
individuals in the international arena being able to help themselves. 
In particular, I have seen these loans work in places like Africa, 
where the women, who have traditionally been the market women in 
Africa, have used a lot of these microloans to in fact engage in 
enhancing and encouraging their business.
  Microenterprises are very small, informally organized businesses. 
Other than those that grow crops, often microenterprises employ just 
one person, the owner-operator, or microentrepreneur. In some lower 
income countries, however, microenterprises employ a third or more of 
the labor. The Microenterprise Program is targeted at businesses run by 
employing the poor, and it helps them by increasing their income and 
their assets. It raises their skills and productivity, and it helps 
them form organizations.
  It is interesting, the kinds of businesses around which these 
microenterprises can actually exist. They can sell, for example, one 
product. They can be a soda selling entity in a little booth with cups 
and sodas, and out of that they can raise and help to build their 
families. It only takes one particular product that they might be 
selling.
  In so doing, let me say that we help to have an impact on the foreign 
aid we have to give. We help to have an impact on the growing economies 
of these countries. We also help to have an impact on their self-
reliance and their feeling about themselves. The programs receiving 
USAID funding incorporate the following principles: The commitment of 
significant outreach of services, continued focus on women and the very 
poor, the very backbone of these nations. Many of these women are heads 
of households and also are the basic structure of the family. The 
microcredit does erase poverty. And for those who are aware of the 
hunger around the world, we recognize that that is one the best 
solutions, is to provide the independence that is needed.
  I want to compliment this program, as well, for what it provides to 
women, the access to credit. And as well as it gives them access to 
credit, it helps them educate women in nations like India, in nations 
like Southeast Asia, as well as those in Africa and other parts of the 
world.
  It has been well documented that educated women have fewer children 
and more time between births and, therefore, fewer health problems and 
healthier children. I would certainly say that this is a right 
direction.
  I thank my colleagues for their leadership, and I urge my colleagues 
as well to vote for H.R. 1129.

[[Page H10509]]

  Mr. Speaker, I rise today in strong support of H.R. 1129, the 
Microcredit for Self-Reliance Act. H.R. 1129 grants express authority 
to the United States Agency for International Development [USAID] to 
provide grants and loans in support of microenterprise programs in 
developing countries. The legislation directs that approximately one-
half of the grant assistance provided under the USAID's program be used 
by poverty lending programs to the very poor, particularly poor women, 
under which loans of $300 or less are provided. I especially would like 
to thank Mr. Hall of Ohio for his authorship and leadership on this 
very important bill.
  Microenterprises are very small, informally organized businesses, 
other than those that grow crops. Often microenterprises employ just 
one person, the owner-operator or ``microentrepreneur.'' In some lower-
income countries, however, microenterprises employ a third or more of 
the labor force.
  Importantly, the Microenterprise program is targeted at businesses 
run by and employing the poor. The Microcredit programs seeks to help 
the poor increase their income and assets, raise their skills and 
productivity, and form organizations that facilitate their more 
effective participation in society. In so doing, programs receiving 
USAID funding incorporate the following principles: a commitment to 
significant outreach of services, a continued focus on women and the 
very poor, a striving for sustainability and financial self-
sufficiency, an adherence to rigorous performance standards, a sharing 
of information on best practices, and a fostering of innovation in 
programs.
  Microcredit is a poverty eradication program. It is a program that 
provides opportunity and independence to the poor and to impoverished 
women in particular. In fact, more then 90 percent of microcredit loans 
have gone to women. Providing women access to microcredit enables them 
to open their own businesses and in so doing helps to build 
independence in male-dominated cultures.
  Access to microcredit helps to educate women. It raises their income 
and, thus, that of their families. It has been well-documented that 
educated women have fewer children, have more time between births, and, 
therefore, have fewer health problems and have healthier children.
  I urge my colleagues to vote for H.R. 1129 and in so doing, signal 
their support for this important program that does so much to empower 
women and improve the quality of life for impoverished families around 
the world.
  Mr. PAYNE. Mr. Speaker, I yield back the balance of my time.
  Mr. GILMAN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Latham). The question is on the motion 
offered by the gentleman from New York [Mr. Gilman] that the House 
suspend the rules and pass the bill, H.R. 1129, as amended.
  The question was taken.
  Mr. GILMAN. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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