[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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