[Congressional Record Volume 146, Number 111 (Tuesday, September 19, 2000)]
[House]
[Pages H7753-H7755]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SUPPORT FOR OVERSEAS COOPERATIVE DEVELOPMENT ACT
Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4673) to assist in the enhancement of the development and
expansion of international economic assistance programs that utilize
cooperatives and credit unions, and for other purposes.
The Clerk read as follows:
H.R. 4673
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE
This Act may be cited as the ``Support for Overseas
Cooperative Development Act''.
SEC. 2. FINDINGS
The Congress makes the following findings:
(1) It is in the mutual economic interest of the United
States and peoples in developing and transitional countries
to promote cooperatives and credit unions.
(2) Self-help institutions, including cooperatives and
credit unions, provide enhanced opportunities for people to
participate directly in democratic decision-making for their
economic and social benefit through ownership and control of
business enterprises and through the mobilization of local
capital and savings and such organizations should be fully
utilized in fostering free market principles and the adoption
of self-help approaches to development.
(3) The United States seeks to encourage broad-based
economic and social development by creating and supporting--
(A) agricultural cooperatives that provide a means to lift
low income farmers and rural people out of poverty and to
better integrate them into national economies;
(B) credit union networks that serve people of limited
means through safe savings and by extending credit to
families and microenterprises;
(C) electric and telephone cooperatives that provide rural
customers with power and telecommunications services
essential to economic development;
(D) housing and community-based cooperatives that provide
low income shelter and work opportunities for the urban poor;
and
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(E) mutual and cooperative insurance companies that provide
risk protection for life and property to under-served
populations often through group policies.
SEC. 3. GENERAL PROVISIONS.
(a) Declarations of Policy.--The Congress supports the
development and expansion of economic assistance programs
that fully utilize cooperatives and credit unions,
particularly those programs committed to--
(1) international cooperative principles, democratic
governance and involvement of women and ethnic minorities for
economic and social development;
(2) self-help mobilization of member savings and equity,
retention of profits in the community, except those programs
that are dependent on donor financing;
(3) market-oriented and value-added activities with the
potential to reach large numbers of low income people and
help them enter into the mainstream economy;
(4) strengthening the participation of rural and urban poor
to contribute to their country's economic development; and
(5) utilization of technical assistance and training to
better serve the member-owners.
(b) Development Priorities.--Section 111 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2151i) is amended by adding
at the end the following: ``In meeting the requirement of the
preceding sentence, specific priority shall be given to the
following:
``(1) Agriculture.--Technical assistance to low income
farmers who form and develop member-owned cooperatives for
farm supplies, marketing and value-added processing.
``(2) Financial systems.--The promotion of national credit
union systems through credit union-to-credit union technical
assistance that strengthens the ability of low income people
and micro-entrepreneurs to save and to have access to credit
for their own economic advancement.
``(3) Infrastructure.--The establishment of rural electric
and telecommunication cooperatives for universal access for
rural people and villages that lack reliable electric and
telecommunications services.
``(4) Housing and community services.--The promotion of
community-based cooperatives which provide employment
opportunities and important services such as health clinics,
self-help shelter, environmental improvements, group-owned
businesses, and other activities.''.
SEC. 4. REPORT.
Not later than 6 months after the date of enactment of this
Act, the Administrator of the United States Agency for
International Development, in consultation with the heads of
other appropriate agencies, shall prepare and submit to
Congress a report on the implementation of section 111 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151i), as amended
by section 3 of this Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Nebraska (Mr. Bereuter) and the gentleman from Alabama (Mr. Hilliard)
each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).
General Leave
Mr. BEREUTER. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on H.R. 4673.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nebraska?
There was no objection.
Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Speaker, this Member rises in support of H.R. 4673,
the Support for Overseas Cooperative Development Act. This Member
introduced H.R. 4673, along with the distinguished Member from North
Dakota (Mr. Pomeroy), to recognize the importance of and the
strengthened support for cooperatives as an international development
tool.
This Member would also like to thank the distinguished gentleman from
Connecticut (Mr. Gejdenson), the ranking member of the Committee on
International Relations; the distinguished gentleman from California
(Mr. Lantos), the ranking member of the Subcommittee on Asia and the
Pacific; the distinguished gentleman from Pennsylvania (Mr. English);
the distinguished gentleman from Ohio (Mr. Hall); the distinguished
gentleman from Ohio (Mr. Gillmor); and the distinguished gentleman from
North Carolina (Mr. Burr), for their cosponsorship of this measure.
{time} 1130
Indeed, this measure is a bipartisan effort and it certainly enjoys
bipartisan interest and support.
Finally and very importantly, this Member wants to thank the chairman
of the Committee on International Relations, the distinguished
gentleman from New York (Mr. Gilman), for cooperating in the
advancements of H.R. 4673 through the committee and for his support.
Mr. Speaker, this legislation enhances language currently provided in
Section 111 of the Foreign Assistance Act which authorizes the use of
cooperatives in international development programs.
Specifically, this bill will give priority to funding overseas
cooperatives working in the following areas: agriculture, financial
systems, rural electric and telecommunications infrastructure, housing,
and health. Importantly, H.R. 4673 does not provide for additional
appropriations. While the administration does not routinely take
positions on such matters, the Agency for International Development has
not raised any objections to H.R. 4673 and I believe it is quite
supportive and sympathetic.
Mr. Speaker, as we all know, cooperatives are voluntary organizations
formed to share the mutual economic and self-help interests of their
members. In the United States, cooperatives have existed, of course,
for many years and in many forms, including agriculturally based
cooperatives, electrical cooperatives, and credit unions. The common
thread among all cooperatives is that they allow their members who, for
a variety of reasons, might not otherwise be served by traditional
institutions, to mobilize resources available to them, and to reap the
benefits of association.
Since the 1960s, overseas cooperative projects have proven successful
in providing assistance and compassionate assistance, I might
emphasize, to low-income people in developing and transitional
countries. Today, people in 60 countries are benefiting from U.S.
cooperatives working abroad through projects which can be completed at
very little cost to U.S. taxpayers. The low costs are possible because
the money used for the projects is spent on technical and managerial
expertise, not on extensive bureaucracy and direct foreign assistance
payments.
Mr. Speaker, the benefits of cooperatives as a development tool are
numerous. This Member would like to mention examples of democratic and
economic results from the fostering of cooperatives working overseas.
Building economic infrastructure is a key role of overseas
development cooperatives. Through representatives from the U.S.
cooperatives, people who have traditionally been underserved in their
countries, especially in rural areas and especially women, receive
technical training never before available to them. Such training in
accounting, marketing, entrepreneurialship and strategic planning
prepares them to effectively compete for the first time in their
country's economy.
For example, agricultural cooperatives in El Salvador helped to
rebuild the once war-ravaged country by providing a venue for farmers
to pool their scarce resources and scarce experience in capitalism so
that they can market and sell the fruits and vegetables they grow.
In rural Macedonia, a small country whose neighbors are immersed in
ethnic conflict, credit unions provide their members a way to build
lines of credit and savings for the future.
In rural Bangladesh during the early 1990s, cooperative members
bought equipment for an electrification project which now supplies 5
million people with electrical power. Cooperatives lay the foundation
then for future economic stability.
Mr. Speaker, when reviewing the impact of overseas cooperatives, one
simply cannot ignore the impact they have had in assisting people in
transitional countries to build democratic habits and traditions. In
supporting cooperatives, people who have had no previous experience
with democracy create an opportunity to routinely vote for leadership,
to set goals, to write policies and to implement those policies.
Cooperative members learn to expect results from their decisions and
that their decisions can and do, in fact, have an impact on their
lives.
In conclusion, this Member would like to thank the Overseas
Cooperative Development Council, the OCDC, for its contributions to
this measure. The OCDC represents eight cooperative development
organizations which have been very active in building cooperatives
worldwide. The Credit Union National Association, CUNA, has been
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very supportive of this legislation and, as a member of the World
Council on Credit Unions, has contributed technical assistance to aid
the growth of credit unions in key transitional countries such as the
former Yugoslav, Republic of Macedonia and Bolivia.
Again, Mr. Speaker, overseas cooperative projects are simply a good
investment towards building good economic stability and democratic
habits in developing countries, and this Member urges his colleagues in
this body to support H.R. 4673.
Mr. Speaker, I reserve the balance of my time.
Mr. HILLIARD. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of this bill. I would first
like to commend the gentleman from Nevada (Mr. Bereuter), the
subcommittee chairman, for introducing this important piece of
legislation, and the gentleman from New York (Mr. Gilman), the chairman
of the committee, for moving it through the legislative process so
quickly.
Mr. Speaker, credit unions and cooperatives give people more
opportunity to help themselves. By promoting business enterprises and
financial institutions which operate through a democratic
decisionmaking process, the Congress can play a critical role in
encouraging broad-based economic and social development, both at home
and abroad.
The legislation before the House today will ensure that our foreign
aid money adequately promotes credit unions and cooperatives overseas.
The legislation states that priority must be given first to technical
assistance to local-income farmers who farm, who form and develop
cooperatives for farm supplies, marketing and value-added processing;
the promotion of national credit union systems that strengthen the
ability of low-income people and small businesses to have access to
credit. It also establishes a rural electric and telecommunications
cooperative for universal access for rural people and villages; and,
finally, the promotion of community-based cooperatives which provide
employment opportunities and other important services.
Also, Mr. Speaker, the legislation requires the Agency for
International Development to report to Congress every 6 months on the
implementation of this important program.
Mr. Speaker, cooperatives and credit unions allow communities to pool
their financial resources, spread risk, and keep money in local
circulation for the economic well-being of the constituency and
localities they serve. This legislation, by promoting cooperatives and
credit unions overseas, will ensure that Americans get the most bang
for their buck in foreign aid money.
Mr. Speaker, I urge my colleagues to support H.R. 4673.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
Mr. BEREUTER. Mr. Speaker, in conclusion, I want to again express my
appreciation to the distinguished gentleman from North Dakota (Mr.
Pomeroy) for his outstanding cooperation, his assistance, and for being
a full partner in drafting this legislation. I appreciate his effort.
With that said, I urge support of the resolution.
Mr. Speaker, I yield back the balance of my time.
Mr. GILMAN. Mr. Speaker, H.R. 4673, a bill introduced by our
Committee Members, Mr. Bereuter, the gentleman from Nebraska, and
cosponsored by Mr. Pomeroy, the gentleman from North Dakota, would
serve to enhance and expand international economic assistance programs
that utilize cooperatives and credit unions. This bill encourages the
formation of credit unions and grassroots financial institutions as a
way to promote democratic decision-making while concurrently fostering
free market principles and self-help approaches to development in some
of the world's poorest and neediest countries.
The bill's purpose is multi-faceted. It encourages the creation of
agricultural and urban cooperatives in the electrical,
telecommunications, and housing fields as well as the establishment of
base-level credit unions. By doing so, the bill also promotes the
adoption of international cooperative principles and practices in our
foreign assistance programs and encourages the incorporation of market-
oriented principles into these programs. By ensuring that small
businessmen and women as well as small-scale farmers have access to
credit, and also a stake in their own financial institutions, the
United States will foster the key values of self-reliance, community
participation, and democratic decision-making in programs that directly
affect their lives.
The bill amends Section 111 of the Foreign Assistance Act of 1961,
the section of the Act that concerns the development and promotion of
cooperatives, by adding specific language that promotes agricultural
cooperatives, the establishment of credit unions and financial systems,
and the creation of rural electric and telecommunications and housing
cooperatives. The bill lists these increasingly critical areas of
development as priorities for foreign assistance programs and requires
the Administrator of the Agency for International Development to
prepare and submit a report to the Congress on the implementation of
Section 111 of the Foreign Assistance Act of 1961 as amended.
I commend my colleagues for drafting this bill that also strengthens
the intent and spirit of H.R. 1143, the Microenterprise for Self-
Reliance Act of 1999 that the International Relations Committee
reported and the House passed last year. Although strides have been
made to increase access to credit for those who need it most, it is
clear to me that much more needs to be done to enhance micro credit
institutions and credit unions as well as agricultural cooperatives in
the developing world to ensure that sound fiscal practices are applied
in both rural and urban areas of the world's poorest countries.
I commend the bill's sponsors for their efforts to promote the
formation of more and better managed cooperatives as well as the
establishment of credit unions that are managed by the poor themselves
to address agricultural, housing, and health care needs.
Accordingly, I urge passage of this worthy measure.
The SPEAKER pro tempore (Mr. Linder). The question is on the motion
offered by the gentleman from Nebraska (Mr. Bereuter) that the House
suspend the rules and pass the bill, H.R. 4673.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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