[Congressional Record Volume 148, Number 146 (Wednesday, November 13, 2002)]
[Senate]
[Pages S10962-S10964]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




AMENDMENTS TO THE MICROENTERPRISE FOR SELF-RELIANCE ACT OF 2000 AND THE 
                     FOREIGN ASSISTANCE ACT OF 1961

  Mr. DURBIN. Madam President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 689, H.R. 4073.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 4073) to amend the Microenterprise for Self-
     Reliance Act of 2000 and the Foreign Assistance Act of 1961 
     to increase assistance for the poorest people in developing 
     countries under microenterprise assistance programs under 
     those acts, and for other purposes.

  There being no objection, the Senate proceeded to consider the 
bill which had been reported from the Committee on Foreign Relations 
with an amendment to strike all after the enacting clause and inserting 
in lieu thereof the following:

  [Strike the part shown in black brackets and insert the part shown in 
italic.]

                               H.R. 4073

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

     [SECTION 1. AMENDMENTS TO THE MICROENTERPRISE FOR SELF-
                   RELIANCE ACT OF 2000.

       [(a) Purposes.--Section 103 of the Microenterprise for 
     Self-Reliance Act of 2000 (Public Law 106-309) is amended--
       [(1) in paragraph (3), by striking ``microentrepreneurs'' 
     and inserting ``microenterprise households'';
       [(2) in paragraph (4), by striking ``and'' at the end;
       [(3) in paragraph (5)--
       [(A) by striking ``microfinance policy'' and inserting 
     ``microenterprise policy'';
       [(B) by striking ``the poorest of the poor'' and inserting 
     ``the very poor''; and
       [(C) by striking the period at the end and inserting ``; 
     and''; and
       [(4) by adding at the end the following:

[[Page S10963]]

       [``(6) to encourage the United States Agency for 
     International Development to develop, assess, and implement 
     effective outreach methods and tools to ensure that all 
     microenterprise assistance authorized under this title, and 
     the amendments made by this title, is used to assist the 
     greatest absolute number of economically viable clients among 
     the very poor, and that at least 50 percent of all 
     microenterprise assistance authorized under this title, and 
     the amendments made under this title, is used in support of 
     programs or lines of service that target the very poor.''.
       [(b) Definitions.--Section 104 of such Act is amended--
       [(1) in paragraph (2), by striking ``for 
     microentrepreneurs'' and inserting ``to microentrepreneurs 
     and their households''; and
       [(2) by adding at the end the following:
       [``(5) Very poor; poorest people in developing countries.--
     The terms `very poor' and `poorest people in developing 
     countries' mean those persons living either in the bottom 50 
     percent below the poverty line as established by the national 
     government of the country or on less than the equivalent of 
     $1 per day.''.

     [SEC. 2. AMENDMENTS TO THE MICRO- AND SMALL ENTERPRISE 
                   DEVELOPMENT CREDITS PROGRAM UNDER THE FOREIGN 
                   ASSISTANCE ACT OF 1961.

       [(a) Findings and Policy.--Section 108(a)(2) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2151f(a)(2)) is amended by 
     striking ``the development of the enterprises of the poor'' 
     and inserting ``the access to financial services and the 
     development of microenterprises''.
       [(b) Program.--Section 108(b) of such Act (22 U.S.C. 
     2151f(b)) is amended to read as follows:
       [``(b) Program.--To carry out the policy set forth in 
     subsection (a), the President is authorized to provide 
     assistance to increase the availability of financial services 
     to microenterprise households lacking full access to credit, 
     including through--
       [``(1) loans and guarantees to microfinance institutions 
     for the purpose of expanding the availability of savings and 
     credit to poor and low-income households;
       [``(2) training programs for microfinance institutions in 
     order to enable them to better meet the financial services 
     needs of their clients; and
       [``(3) training programs for clients in order to enable 
     them to make better use of credit, increase their financial 
     literacy, and to better manage their enterprises.''.
       [(c) Eligibility Criteria.--Section 108(c) of such Act (22 
     U.S.C. 2151f(c)) is amended--
       [(1) in the first sentence of the matter preceding 
     paragraph (1)--
       [(A) by striking ``credit institutions'' and inserting 
     ``microfinance institutions''; and
       [(B) by striking ``micro- and small enterprises'' and 
     inserting ``microenterprise households''; and
       [(2) in paragraphs (1) and (2), by striking ``credit'' each 
     place it appears and inserting ``financial services''.
       [(d) Additional Requirement.--Section 108(d) of such Act 
     (22 U.S.C. 2151f(d)) is amended by striking ``micro- and 
     small enterprise programs'' and inserting ``programs for 
     microenterprise households''.
       [(e) Availability of Funds.--Section 108(f)(1) of such Act 
     (22 U.S.C. 2151f(f)(1)) is amended by striking ``for each of 
     fiscal years 2001 and 2002'' and inserting ``for each of 
     fiscal years 2001 through 2004''.
       [(f) Conforming Amendment.--Section 108 of such Act (22 
     U.S.C. 2151f) is amended in the heading to read as follows:

     [``SEC. 108. MICROENTERPRISE DEVELOPMENT CREDITS.''.

     [SEC. 3. AMENDMENTS TO THE MICROENTERPRISE DEVELOPMENT GRANT 
                   ASSISTANCE PROGRAM UNDER THE FOREIGN ASSISTANCE 
                   ACT OF 1961.

       [(a) Findings and Policy.--Section 131(a) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2152a(a)) is amended to 
     read as follows:
       [``(a) Findings and Policy.--Congress finds and declares 
     that--
       [``(1) access to financial services and the development of 
     microenterprise are vital factors in the stable growth of 
     developing countries and in the development of free, open, 
     and equitable international economic systems;
       [``(2) it is therefore in the best interest of the United 
     States to facilitate access to financial services and assist 
     the development of microenterprise in developing countries;
       [``(3) access to financial services and the development of 
     microenterprises can be supported by programs providing 
     credit, savings, training, technical assistance, business 
     development services, and other financial and non-financial 
     services; and
       [``(4) given the relatively high percentage of populations 
     living in rural areas of developing countries, and the 
     combined high incidence of poverty in rural areas and growing 
     income inequality between rural and urban markets, 
     microenterprise programs should target both rural and urban 
     poor.''.
       [(b) Authorization.--Section 131(b) of such Act (22 U.S.C. 
     2152a(b)) is amended--
       [(1) in paragraph (3)--
       [(A) in the first sentence of the matter preceding 
     subparagraph (A), by striking ``targeted to very poor 
     entrepreneurs'' and all that follows and inserting ``used in 
     support of programs or lines of service under which 50 
     percent or more of the incoming or prospective clients are 
     initially very poor.''; and
       [(B) in subparagraph (A)(i) , by striking ``entrepreneurs'' 
     and inserting ``clients''; and
       [(2) in paragraph (4)(D)--
       [(A) in clause (i), by striking ``very small loans'' and 
     inserting ``financial services to poor entrepreneurs''; and
       [(B) in clause (ii), by striking ``microfinance'' and 
     inserting ``microenterprise''.
       [(c) Monitoring System.--Section 131(c) of such Act (22 
     U.S.C. 2152a(c)) is amended by striking paragraph (4) and 
     inserting the following:
       [``(4) adopts the widespread use of proven and effective 
     poverty assessment tools to successfully identify the very 
     poor and ensure that they receive needed microenterprise 
     credits, loans, and assistance.''
       [(d) Development and Application of Poverty Measurement 
     Methods.--Section 131 of such Act (22 U.S.C. 2152a) is 
     amended--
       [(1) by redesignating subsections (d) and (e) as 
     subsections (e) and (f), respectively; and
       [(2) by inserting after subsection (c) the following:
       [``(d) Development and Certification of Poverty Measurement 
     Methods; Application of Methods.--
       [``(1) Development and certification.--(A) The 
     Administrator of the United States Agency for International 
     Development, in consultation with appropriate microfinance 
     institutions, microenterprise institutions, and other 
     appropriate entities shall develop no fewer than two low-cost 
     methods for measuring the poverty levels of the current or 
     prospective clients of microenterprise organizations for 
     purposes of assistance under this section. In developing such 
     methods, the Administrator shall give consideration to 
     methods already in use by practitioner institutions.
       [``(B) The Administrator shall field-test the methods 
     developed under this paragraph, and as part of the testing, 
     institutions and programs may use these methods on a 
     voluntary basis to demonstrate their ability to reach the 
     very poor.
       [``(C) Not later than October 1, 2004, the Administrator 
     shall, from among the low-cost poverty measurement methods 
     developed under this paragraph, certify no fewer than two of 
     such methods as approved methods for measuring the poverty 
     levels of the current or prospective clients of 
     microenterprise organizations for purposes of assistance 
     under this section.
       [``(2) Application.--Beginning on and after October 1, 
     2004, assistance furnished under this section to a program or 
     to a line of service within an institution shall qualify, in 
     whole or in part, as targeted assistance to the very poor if 
     one or more of the measurement methods approved under 
     paragraph (1), or one or more of the measurement methods 
     approved in accordance with paragraph (1) after October 1, 
     2004, verifies that at least 50 percent of the incoming or 
     prospective clients of the program or line of service are 
     initially among the very poor.''.
       [(e) Level of Assistance.--Section 131(e) of such Act, as 
     redesignated by subsection (d), is amended by inserting ``and 
     $175,000,000 for fiscal year 2003 and $200,000,000 for fiscal 
     year 2004'' after ``fiscal years 2001 and 2002''.
       [(f) Definitions.--Section 131(f) of such Act, as 
     redesignated by subsection (d), is amended by adding at the 
     end the following:
       [``(5) Very poor; poorest people in developing countries.--
     The terms `very poor' and `poorest people in developing 
     countries' mean those persons living either in the bottom 50 
     percent below the poverty line as established by the national 
     government of the country or on less than the equivalent of 
     $1 per day.''.

     [SEC. 4. REPORT TO CONGRESS.

       [Not later than July 1, 2004, the Administrator of the 
     United States Agency for International Development shall 
     submit to Congress a report that contains--
       [(1) a description of the interim poverty measurement 
     methods developed and implemented pursuant to section 
     131(d)(1) of the Foreign Assistance Act of 1961, as added by 
     section 3(d);
       [(2) an analysis of the results of the application of such 
     interim poverty measurement methods to sustainable poverty-
     focused programs under such section; and
       [(3) a description of the proposed final poverty 
     measurement methods to be implemented beginning on October 1, 
     2004, in accordance with section 131(d)(2) of such Act, as 
     added by section 3(d).]

     SECTION 1. AMENDMENTS TO THE MICROENTERPRISE FOR SELF-
                   RELIANCE ACT OF 2000.

       (a) Purposes.--Section 103 of the Microenterprise for Self-
     Reliance Act of 2000 (Public Law 106-309) is amended--
       (1) in paragraph (3), by striking ``microentrepreneurs'' 
     and inserting ``microenterprise households'';
       (2) in paragraph (4), by striking ``and'' at the end;
       (3) in paragraph (5)--
       (A) by striking ``microfinance policy'' and inserting 
     ``microenterprise policy'';
       (B) by striking ``the poorest of the poor'' and inserting 
     ``the very poor''; and
       (C) by striking the period at the end and inserting ``; 
     and''; and
       (4) by adding at the end the following:
       ``(6) to ensure that in the implementation of this title at 
     least 50 percent of all microenterprise assistance under this 
     title, and the amendments made under this title, shall be 
     targeted to the very poor.''.

[[Page S10964]]

       (b) Definitions.--Section 104 of such Act is amended--
       (1) in paragraph (2), by striking ``for 
     microentrepreneurs'' and inserting ``to microentrepreneurs 
     and their households''; and
       (2) by adding at the end the following:
       ``(5) Very poor.--The term `very poor' means individuals--
       ``(A) living in the bottom 50 percent below the poverty 
     line established by the national government of the country in 
     which those individuals live; or
       ``(B) living on the equivalent of less than $1 per day.''.

     SEC. 2. AMENDMENTS TO THE MICRO- AND SMALL ENTERPRISE 
                   DEVELOPMENT CREDITS PROGRAM UNDER THE FOREIGN 
                   ASSISTANCE ACT OF 1961.

       (a) Findings and Policy.--Section 108(a)(2) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2151f(a)(2)) is amended by 
     striking ``the development of the enterprises of the poor'' 
     and inserting ``the access to financial services and the 
     development of microenterprises''.
       (b) Program.--Section 108(b) of such Act (22 U.S.C. 
     2151f(b)) is amended to read as follows:
       ``(b) Program.--To carry out the policy set forth in 
     subsection (a), the President is authorized to provide 
     assistance to increase the availability of financial services 
     to microenterprise households lacking full access to credit, 
     including through--
       ``(1) loans and guarantees to microfinance institutions for 
     the purpose of expanding the availability of savings and 
     credit to poor and low-income households;
       ``(2) training programs for microfinance institutions in 
     order to enable them to better meet the financial services 
     needs of their clients; and
       ``(3) training programs for clients in order to enable them 
     to make better use of credit, increase their financial 
     literacy, and to better manage their enterprises to improve 
     their quality of life.''.
       (c) Eligibility Criteria.--Section 108(c) of such Act (22 
     U.S.C. 2151f(c)) is amended--
       (1) in the first sentence of the matter preceding paragraph 
     (1)--
       (A) by striking ``credit institutions'' and inserting 
     ``microfinance institutions''; and
       (B) by striking ``micro- and small enterprises'' and 
     inserting ``microenterprise households''; and
       (2) in paragraphs (1) and (2), by striking ``credit'' each 
     place it appears and inserting ``financial services''.
       (d) Additional Requirement.--Section 108(d) of such Act (22 
     U.S.C. 2151f(d)) is amended by striking ``micro- and small 
     enterprise programs'' and inserting ``programs for 
     microenterprise households''.
       (e) Availability of Funds.--Section 108(f)(1) of such Act 
     (22 U.S.C. 2151f(f)(1)) is amended by striking ``for each of 
     fiscal years 2001 and 2002'' and inserting ``for each of 
     fiscal years 2001 through 2004''.
       (f) Conforming Amendment.--Section 108 of such Act (22 
     U.S.C. 2151f) is amended in the heading to read as follows:

     ``SEC. 108. MICROENTERPRISE DEVELOPMENT CREDITS.''.

     SEC. 3. AMENDMENTS TO THE MICROENTERPRISE DEVELOPMENT GRANT 
                   ASSISTANCE PROGRAM UNDER THE FOREIGN ASSISTANCE 
                   ACT OF 1961.

       (a) Findings and Policy.--Section 131(a) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2152a(a)) is amended to 
     read as follows:
       ``(a) Findings and Policy.--Congress finds and declares 
     that--
       ``(1) access to financial services and the development of 
     microenterprise are vital factors in the stable growth of 
     developing countries and in the development of free, open, 
     and equitable international economic systems;
       ``(2) it is therefore in the best interest of the United 
     States to facilitate access to financial services and assist 
     the development of microenterprise in developing countries;
       ``(3) access to financial services and the development of 
     microenterprises can be supported by programs providing 
     credit, savings, training, technical assistance, business 
     development services, and other financial and non-financial 
     services; and
       ``(4) given the relatively high percentage of populations 
     living in rural areas of developing countries, and the 
     combined high incidence of poverty in rural areas and growing 
     income inequality between rural and urban markets, 
     microenterprise programs should target both rural and urban 
     poor.''.
       (b) Authorization.--Section 131(b) of such Act (22 U.S.C. 
     2152a(b)) is amended--
       (1) in paragraph (3)(A)(i), by striking ``entrepreneurs'' 
     and inserting ``clients''; and
       (2) in paragraph (4)(D)--
       (A) in clause (i), by striking ``very small loans'' and 
     inserting ``financial services to poor entrepreneurs''; and
       (B) in clause (ii), by striking ``microfinance'' and 
     inserting ``microenterprise''.
       (c) Monitoring System.--Section 131(c) of such Act (22 
     U.S.C. 2152a(c)) is amended by striking paragraph (4) and 
     inserting the following:
       ``(4) adopts the widespread use of proven and effective 
     poverty assessment tools to successfully identify the very 
     poor and ensure that they receive needed microenterprise 
     loans, savings, and assistance.''.
       (d) Development and Application of Poverty Measurement 
     Methods.--Section 131 of such Act (22 U.S.C. 2152a) is 
     amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d) Development and Certification of Poverty Measurement 
     Methods; Application of Methods.--
       ``(1) Development and certification.--(A) The Administrator 
     of the United States Agency for International Development, in 
     consultation with microenterprise institutions and other 
     appropriate organizations, shall develop no fewer than two 
     low-cost methods for partner institutions to use to assess 
     the poverty levels of their current or prospective clients. 
     The United States Agency for International Development shall 
     develop poverty indicators that correlate with the 
     circumstances of the very poor.
       ``(B) The Administrator shall field-test the methods 
     developed under subparagraph (A). As part of the testing, 
     institutions and programs may use the methods on a voluntary 
     basis to demonstrate their ability to reach the very poor.
       ``(C) Not later than October 1, 2004, the Administrator 
     shall, from among the low-cost poverty measurement methods 
     developed under subparagraph (A), certify no fewer than two 
     such methods as approved methods for measuring the poverty 
     levels of current or prospective clients of microenterprise 
     institutions for purposes of assistance under this section.
       ``(2) Application.--The Administrator shall require that, 
     with reasonable exceptions, all organizations applying for 
     microenterprise assistance under this Act use one of the 
     certified methods, beginning no later than October 1, 2005, 
     to determine and report the poverty levels of current or 
     prospective clients.''.
       (e) Level of Assistance.--Section 131(e) of such Act, as 
     redesignated by subsection (d), is amended by inserting ``and 
     $175,000,000 for fiscal year 2003 and $200,000,000 for fiscal 
     year 2004'' after ``fiscal years 2001 and 2002''.
       (f) Definitions.--Section 131(f) of such Act, as 
     redesignated by subsection (d), is amended by adding at the 
     end the following:
       ``(5) Very poor.--The term `very poor' means those 
     individuals--
       ``(A) living in the bottom 50 percent below the poverty 
     line established by the national government of the country in 
     which those individuals live; or
       ``(B) living on less than the equivalent of $1 per day.''.

     SEC. 4. REPORT TO CONGRESS.

       (a) In General.--Not later than September 30, 2005, the 
     Administrator of the United States Agency for International 
     Development shall submit to Congress a report that documents 
     the process of developing and applying poverty assessment 
     procedures with its partners.
       (b) Reports for Fiscal Year 2006 and Beyond.--Beginning 
     with fiscal year 2006, the Administrator of the United States 
     Agency for International Development shall annually submit to 
     Congress on a timely basis a report that addresses the United 
     States Agency for International Development's compliance with 
     the Microenterprise for Self-Reliance Act of 2000 by 
     documenting--
       (1) the percentage of its resources that were allocated to 
     the very poor (as defined in paragraph (5) of section 131(f) 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2152a(f)(5))) based on the data collected from its partners 
     using the certified methods; and
       (2) the absolute number of the very poor reached.

  Mr. DURBIN. Madam President, I ask unanimous consent that the 
committee substitute amendment be agreed to; the bill, as amended, be 
read the third time and passed and the motion to reconsider be laid 
upon the table, with no intervening action or debate; that any 
statements related thereto be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment in the nature of a substitute was agreed to.
  The bill (H.R. 4073), as amended, was read the third time and passed.

                          ____________________