[Congressional Record Volume 144, Number 41 (Thursday, April 2, 1998)]
[Extensions of Remarks]
[Pages E586-E587]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            H.R. 3636, THE AFRICA SEEDS OF HOPE ACT OF 1998

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                        Wednesday, April 1, 1998

  Mr. HAMILTON. Mr. Speaker, today, Congressman Bereuter and I are 
introducing in the House legislation to advance agricultural and rural 
development in Africa.
  As President Clinton continues his historic trip through Africa, it 
is especially fitting that this legislation be introduced, because it 
will help make good on the promise of closer ties between the United 
States and the people of Africa.
  Rural and agricultural markets are vital to African trade and 
economic development. If we are serious about improving the economic 
position of Africa in global markets, we must encourage women and 
small-scale farmers and entrepreneurs to be the engine of growth. I 
commend my friend, Doug Bereuter, for his hard-work and leadership on 
this legislation, which takes an important step forward in encouraging 
and strengthening those vital resources.


                             Why It Matters

  While the Congress and the Administration are right to focus on 
African trade and investment, many African countries are not yet ready 
to graduate from aid recipient to trading partner. The poorest 
countries in Africa still need substantial foreign assistance and debt 
relief to accomplish things that increased trade and investment will 
not address.
  Chief among these is combating hunger.
  Over the last 30 years, the number of undernourished people in Africa 
has more than doubled, to around 215 million today.
  Hunger causes profound--and needless--human suffering. It also 
undermines the development of human and physical capital necessary to 
fuel economic development and break the cycle of poverty.
  The spread of democracy, the availability of advanced agricultural 
technology, and the emergence of robust voluntary and civic 
organizations throughout Africa present us, today, with an opportunity 
to significantly reduce hunger and poverty in Africa. By carefully 
targeting U.S. assistance on agriculture and rural development, H.R. 
3636 will allow us to harness this opportunity.


                              What It Does

  H.R. 3636 will advance rural and agricultural development in Africa 
by directing the Administration to place a higher priority on these 
areas in its assistance policy toward Africa, and by improving existing 
programs to combat hunger and ensure that Africa's food supply is 
secure.
  This bill does not call for increased U.S. spending although I 
believe the Congress should support higher aid levels for Africa. By 
carefully targeting aid programs already in place, and by fine-tuning 
the way they are administered, this bill will allow the U.S. to get the 
most out of its development programs.


                             Rural Finance

  First, this bill would take several steps to increase U.S. support 
for rural finance in Africa, by requiring U.S. AID to:
  Develop a micro-enterprise strategy for Africa;
  Place a high-priority on providing credit and micro-credit to small-
scale farmers--especially women, who produce up to 80 percent of the 
total food supply in Africa; and
  Support producer marketing associations and enhance the capacity and 
expertise of African business associations by: Using available 
assistance programs; cooperating with U.S. and local NGOs; and 
facilitating partnerships between U.S. and African businesses and 
cooperatives.
  This bill also urges U.S. support for the International Fund for 
Agricultural Development (IFAD), which provides loans for famine 
relief. And, it encourages OPIC to work with U.S. AID to support 
agricultural and rural development in sub-Saharan African through 
available funds, loans and insurance.


                  Agricultural Research and Extension

  Second, this bill would make U.S. efforts in Africa more effective by 
increasing program coordination.
  It directs AID and the Department of Agriculture to develop a plan 
for coordinating international and national agricultural centers, 
research, and extension efforts with two goals in mind: To ensure that 
research responds to the needs of African farmers; and to support 
farmers' self-reliance by specifically targeting their agricultural 
skills.
  The bill also expresses the sense of Congress that U.S. AID devote 
increased resources and staff to agriculture and rural development.
  Well-coordinated policies that are more responsive to the needs of 
the people we are trying to assist will maximize the impact of U.S. 
assistance without increasing funding levels.


                             food security

  Third, this bill will bolster the existing Africa Food Security 
Initiative, which supplies government-to-government food aid to combat 
hunger and promote economic development.
  Currently, this Initiative receives $31 million in funding from AID. 
To maximize the efficiency of current programs, H.R. 3636 directs AID 
to: Target its resources where they are most needed--on programs and 
projects that focus on infants, young children, women, and the rural 
poor; consult with and consider the views of the people these programs 
are trying to help; and ensure that programs are conducted by U.S. and 
African NGOs, to increase accountability and long-term sustainability.


                            food assistance

  Finally, this bill will reform the Food Security Commodity Reserve to 
increase its long-term

[[Page E587]]

viability. The Reserve was created to meet urgent humanitarian food 
needs in developing countries. Commodities in the Reserve--such as 
wheat, corn, sorghum, and rice--can be released when domestic supplies 
are tight, or to meet unanticipated emergency needs in developing 
countries.
  The problem with the Reserve today is the manner in which it is 
replenished. When commodities are released, the Commodity Credit 
Corporation, which administers the Reserve, is reimbursed for the value 
of the commodities from PL-480 food assistance program funds. These 
funds cannot be used to replenish the Reserve.
  The Reserve can only be replenished either with an appropriation, or 
by designating Commodity Credit stocks for the Reserve. Neither of 
these is a viable option--Congress has never made an appropriation to 
replenish the Reserve, and the Commodity Credit Corporation does not 
hold excess stock.
  This bill would convert the Reserve into the Bill Emerson 
Humanitarian Trust, which could hold as a commodity either food, or an 
equivalent amount in funds. It creates two alternative mechanisms for 
replenishing the Reserve, in addition to the current option of 
replenishing by appropriation.
  First, the bill gives the Secretary of Agriculture authority to hold 
PL-480 funds--used to reimburse the Commodity Credit Corporation--as an 
asset of the Trust. This would allow the Reserve to buy commodities 
when domestic market prices are favorable.
  Second, the Trust could be replenished from unexpended balances at 
the end of the fiscal year--from both the PL-480 account and the 
Commodity Credit account. Commodity Credit balances that are already 
obligated would not be available nor would balances be drawn down from 
export promotion programs.
  Allowing the Reserve to be replenished from these additional sources 
permits the Reserve to operate more efficiently and increases our 
ability to respond to humanitarian crises.


                            who supports it

  This bill is the result of bipartisan cooperation. Humanitarian 
groups--such as Bread for the World and the Coalition for Food Aid--
must be commended for their serious commitment and valuable suggestions 
to this bill. We have also consulted with the Administration on the 
bill. These efforts have been undertaken to ensure that this bill 
reaches its goal of advancing agricultural and rural development and 
reducing famine.
  I look forward to continuing to work on this bill with my colleagues 
on both sides of the aisle, and I intend to work with the 
Administration to try to accommodate their concerns as we move forward.


                               conclusion

  Without increasing U.S. spending, this bill will maximize our current 
efforts to protect and develop the vital human and physical resources 
that are necessary to drive economic prosperity in Africa. By making 
U.S. programs more effective and sustainable, it will ensure that the 
United States continues to be constructively engaged with the people of 
Africa.
  H.R. 3636 will bring Congress and the Administration closer to our 
shared goal of creating a U.S. policy toward Africa that is no longer 
dominated by crises, but that is driven by a long-term commitment to 
development and economic partnership.

                          ____________________