[Congressional Record Volume 152, Number 46 (Tuesday, April 25, 2006)]
[House]
[Pages H1698-H1700]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AUTHORIZING PARTICIPATION IN ENTERPRISE FOR THE AMERICAS MULTILATERAL
INVESTMENT FUND
Ms. PRYCE of Ohio. Madam Speaker, I move to suspend the rules and
pass the bill (H.R. 4916) to authorize United States participation in,
and appropriations for, the United States contribution to the first
replenishment of the resources of the Enterprise for the Americas
Multilateral Investment Fund.
The Clerk read as follows:
H.R. 4916
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. FIRST REPLENISHMENT OF THE RESOURCES OF THE
ENTERPRISE FOR THE AMERICAS MULTILATERAL
INVESTMENT FUND.
The Inter-American Development Bank Act (22 U.S.C. 283 et
seq.) is amended by adding at the end the following:
``SEC. 39. FIRST REPLENISHMENT OF THE RESOURCES OF THE
ENTERPRISE FOR THE AMERICAS MULTILATERAL
INVESTMENT FUND.
``(a) Contribution Authority.--
``(1) In general.--The Secretary of the Treasury may
contribute on behalf of the United States $150,000,000 to the
first replenishment of the resources of the Enterprise for
the Americas Multilateral Investment Fund.
``(2) Subject to appropriations.--The authority provided by
paragraph (1) may be exercised only to the extent and in the
amounts provided for in advance in appropriations Acts.
``(b) Limitations on Authorization of Appropriations.--For
the United States contribution authorized by subsection (a),
there are authorized to be appropriated not more than
$150,000,000, without fiscal year limitation, for payment by
the Secretary of the Treasury.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Ohio (Ms. Pryce) and the gentlewoman from New York (Mrs. Maloney) each
will control 20 minutes.
The Chair recognizes the gentlewoman from Ohio.
Ms. PRYCE of Ohio. Madam Speaker, I yield myself such time as I may
consume.
The Multilateral Investment Fund, or MIF, was created as a mechanism
to stimulate innovation and economic growth for Latin America and
Caribbean countries and is operated by the Inter-American Development
Bank, IADB, an organization that oversees many programs and loans that
benefit the economically challenged in those areas.
Projects funded through the MIF are focused on new development
approaches that work to promote inclusive economic growth. The IADB has
made the central goal of the MIF to use both grants and investments to
demonstrate new ways in developing micro- and small enterprises, to
build workers' skills, strengthen environmental management, and improve
the functions of financial markets.
This legislation fulfills the President's FY 2007 budget request for
$25 million, or a total of $150 million over 6 years, to be given in
replenishing the MIF and meet the U.S. commitment.
At the close of FY 2005, the total amount of projects approved by the
MIF exceeded $1 billion, encompassing 799 projects with an additional
$1 billion in co-financing that was put to use in meeting MIF goals.
Our authorizing this new replenishment allows for a continuation of
all the good work the IADB has been doing in the area of microfinance.
Microfinance projects are especially important to developing areas in
helping break the cycle of poverty by providing a loan to start a small
or microenterprise, a business usually defined as having less than 10
employees in an economic hardship area.
Through small business growth, areas are then able to demonstrate
that they have potential to attract wider sources of capital and enable
further expansion of services for microenterprises. Building the small
firm sector offers the greatest potential to generating job growth,
which will lead to lasting freedom from poverty.
The MIF has pioneered the creation of venture capital for small
business in Latin America and the Caribbean and continues to look for
opportunities that would improve venture capital for small businesses
by supporting reforms and regulatory and legislative frameworks, and by
helping to remove barriers to small business financing.
This legislation honors our commitment to these countries, will
attract further capital investment and help create stable, reliable
trading partners in these developing nations.
Madam Speaker, I am so pleased to have the ranking members of the
full committee and my subcommittee, Mr. Frank and Mrs. Maloney, as well
as my subcommittee vice chair, Mrs. Biggert, and Chairman Spencer
Bachus, joining me in supporting this replenishment; and I ask for my
colleagues to support this bill.
Madam Speaker, I reserve the balance of my time.
Mrs. MALONEY. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise in strong bipartisan support of H.R. 4916, a
bill that will authorize continued United States participation in and
appropriations for the U.S. contribution to the first replenishment of
the resources of the Enterprise for the Americas Multilateral
Investment Fund.
This bill was introduced with strong bipartisan support by
Representative Pryce, who chairs the subcommittee on which I serve as
the ranking member, Congressman Frank, Congresswoman Biggert and
myself, and was reported unanimously out of the committee by voice
vote.
The MIF is operated by the Inter-American Development Bank and is
governed by a donors committee composed of representatives of 37 member
countries. The United States is the MIF's largest contributor with 42
percent, and as such exercises considerable influence over its
strategic direction and the individual projects it approves.
The MIF does exactly the kinds of things that those who follow the
work of the international financial institutions on both sides of the
aisle wish these institutions would do. Its principal work is to
administer a private sector grant program to assist in developing
microenterprises which particularly help small women-owned businesses,
it builds workers' skills, it strengthens environmental management, and
it improves the efficiency of financial markets in Latin America and
the Caribbean.
Roughly 80 percent of MIF projects are undertaken in direct
partnership with private sector business associations, trade groups and
non-governmental organizations. Typically, MIF resources are matched
dollar for dollar with contributions from these groups.
MIF resources also leverage additional funds from other sources,
providing a multiplier effect for projects
[[Page H1699]]
that have consistently been recognized as among the most innovative and
effective of multilateral development institutions.
The total authorization for U.S. participation contained in this
legislation is $150 million over 6 years. The remaining member
countries have pledged over $350 million. The first installment of the
U.S. contribution, $25 million, was included in the President's budget
request for fiscal year 2007.
The Financial Services Committee has conducted close oversight over
MIF programs since the fund was first established in 1993. In 13 years
of operation, MIF has worked with over 400 private sector organizations
throughout Latin America and the Caribbean, approving over $1 billion
for roughly 800 different projects. The MIF is the single largest
source of technical assistance for this part of the world.
One area in which the MIF's work has attracted particular attention
in recent years involves the impact of remittances, transfer of money
by foreigners to their home countries in that region. Thanks to the
fund's efforts, the fees accompanying sending of these moneys back home
have been significantly lowered, from 15 percent to 5 percent. Thanks
to MIF technical assistance, the recipients of these funds have
channeled them into their countries' formal financial systems, helping
them to create badly needed jobs.
Madam Speaker, I would like to note that the House report that
accompanies this bill mentions that the U.S. has an overdue balance
resulting from the U.S. pledge to the original MIF agreement. While no
funds are included in this bill for that purpose, the committee urges
the administration to seek funding to pay this amount in back dues.
MIF is an example of a program that actually works. It offers proof
that multilateral institutions can provide win-win solutions. MIF shows
that U.S. taxpayers can benefit while hardworking citizens of Latin
America and the Caribbean who wish to start a business and compete in
the global economy can pull themselves out of poverty.
I urge my colleagues to support this bill.
Madam Speaker, I reserve the balance of my time.
Ms. PRYCE of Ohio. Madam Speaker, I yield 3 minutes to my good friend
and chairman of the subcommittee, Spencer Bachus.
Mr. BACHUS. Madam Speaker, I thank Chairman Pryce, and will start by
commending Chairman Pryce and Congresswoman Maloney and Congresswoman
Biggert and also Ranking Member Frank for this legislation.
A lot of citizens might be hearing this debate and they may be
thinking, what has this got to do with the United States? What do
problems in Latin America have to do with the United States? What is in
it for me, my constituents might ask me? Why would you support spending
$25 million a year on this program? What do Americans get out of this
program?
I submit to you that this program is probably one of the best uses of
our taxpayers' money for one simple reason: when I go home today,
people say to me, illegal immigration; do something about illegal
immigration.
{time} 1530
Well, let me say this to fellow Members: if you want to do something
about illegal immigration, this vote today, a ``yes'' vote on this
bill, will do more from a practical standpoint to stem the flow of
illegal immigration than anything else.
James Schlessinger, one of my favorite quotes is a quote of his when
he says: ``When a problem has no solution, it is not a problem. It is a
fact.''
Well, I can tell you that illegal immigration is a fact. But it is
also a problem that has solutions. And the first solution, the first
step to solving it we can take today by voting for this bill.
Now, why is that? Well, let me tell you about illegal immigration.
Let me tell you about Mexico, one of the countries that benefits from
this program. It creates small enterprises, small jobs in Mexico. In
Mexico every year, 600,000 Mexicans enter the job force; but there is
only room for 150,000 of them. So almost a half million of them cannot
even get a job at any wage.
The ones that do get a job is at one-fifth of what Americans pay,
American jobs. Guatemala, El Salvador, the Dominican Republic, we are
beginning to have more and more illegal immigrants from those
countries. The reason? In the countries that I have just mentioned,
about one out of every five young men or women that enters the job
market can get a job.
So I can tell you it is a fact of life when they cannot get a job at
any salary, they are going to try to come over here. Yes, we can build
walls. Yes, we can employ more people on the border. But a cheaper,
more practical, more long-term solution is this legislation today which
will create the very jobs these countries need. And that is not the
large government enterprises. It is the private enterprise businesses.
I close by saying this: another great thing about this program is we
have partners. It is not a government program. The NGOs, the private
sector business organizations, trade groups, they are all involved in
this.
Let us vote ``yes'' on this. Let us start creating jobs in those
countries and stemming the flow of illegal immigration.
Mrs. MALONEY. Madam Speaker, I yield myself such time as I may
consume.
I agree completely with the gentleman. This not only will help the
economic development, but certainly will give immigrants a reason to
stay in their own countries and develop their own economy.
Madam Speaker, I reserve the balance of my time.
Ms. PRYCE of Ohio. Madam Speaker, I yield such time as she may
consume to the gentlewoman from Illinois (Mrs. Biggert) who has done so
much work in this area.
Mrs. BIGGERT. Madam Speaker, I thank the gentlewoman from Ohio (Ms.
Pryce) for yielding me time.
Madam Speaker, I rise in strong support of H.R. 4916, the bill that
really authorizes the United States' contribution to the first
replenishment of the resources of the Enterprise for the Americas
Multilateral Investment Fund, which is often referred to as MIF.
I want to thank Chairman Pryce for her leadership on the
authorization bill and on all of the domestic and international
economic development initiatives that she has undertaken since becoming
chairman of the House Financial Services Domestic and International
Monetary Policy Trade and Technology Subcommittee. It is an honor to
serve as her vice-chairman.
I also thank the gentlewoman from New York (Mrs. Maloney) for all the
work that she has done as the ranking member of the committee. And I
would like to thank Mr. Bachus for really being able to put this all in
context of what this really means for all of us in the United States
and why this is so important.
It is important and in the U.S.'s best interest that we support
international economic development initiatives as we fight the war on
terror. It is especially important that we fund homegrown,
microeconomic projects in developing countries.
These projects are often supported through MIF's technical and
financial supports. The Inter-American Development Bank is doing
important work to marry the public and private sectors, is working to
engage the international community and pro-democracy, pro-free trade,
and pro-free market.
Through a variety of initiatives, programs and projects, the bank is
promoting sustainable economic growth in developing countries. Just as
important as it is to the U.S., it is important to many developing
countries to promote job growth, improve education, expand health care,
enhance environmental standards, produce clean energy, develop sound
infrastructure, and increase access to financial markets and
institutions.
The MIF fund, which is operated by the International American
Development Bank, is a critical component of all of these marks of
economic stability for developing countries, particularly in Latin
America and the Caribbean, as they work towards stabilizing their
governments and towards sustainable economic growth.
H.R. 4916 authorizes the U.S. contribution of $150 million to MIF and
sends a strong message to our neighbors in the south, and to the
international community and the leaders in the Inter-American
Development Bank that we support their efforts.
[[Page H1700]]
Madam Speaker, I would like to commend the U.S. delegation that
participated in the 47th annual Inter-American Development Bank
meetings that were held earlier this month and for their hard work. In
particular, I would like to commend the bank's leaders and staff for
taking the helm of anti-corruption initiatives and for promoting
ethical practices within the bank.
In addition, I would like to recognize the new Inter-American
Development president, Luis Alberto Moreno, for his leadership in
promoting public-private partnerships, especially those that involve
small businesses.
I would also like to thank him for facilitating discussions about
Latin American debt relief and development at this year's annual
meeting. MIF is a proven winner in meeting important job creation and
economic goals throughout the region.
By tapping the talents, strengths, and resources of private sector
groups and organization, we can continue to help others help
themselves. This is a great program that leverages small dollars into
big results for many people throughout Latin America.
Madam Speaker, I am again pleased to lend my support to the chairman
for her legislation, and I urge my colleagues to do the same.
Mrs. MALONEY. Madam Speaker, I urge all of my colleagues to support
this important legislation, and I yield back the balance of my time.
Ms. PRYCE of Ohio. Madam Speaker, I have no further requests for
time. It has been a pleasure working with the gentlewoman from New
York.
Ms. WATERS. Madam Speaker, I rise in support of H.R. 4916, a bill to
authorize U.S. participation in the Enterprise for the Americas
Multilateral Investment Fund (the Fund/MIF). The bill provides $150
million for the Fund. While this may appear to be a small amount
compared to some of our other commitments to multilateral institutions,
the reauthorization of the Fund represents an important step in our
continuing efforts to underwrite economic development activities
outside of our own borders.
In the broadest sense the Fund is designed to promote private sector
development in Latin America and the Caribbean. There are two
overarching themes related to the Fund. One is to reduce poverty and
promote grass roots economic growth in this part of the world. By
strengthening micro and small enterprise capacities, the Fund
stimulates improvements in the business environment and engages the
private sector in the development process. Two, by underwriting
projects that promote innovation, the Fund pilots new concepts,
determining their feasibility for the commercial market, as well as
whether they can be adapted on a larger scale.
To date, more than 75 percent of Fund project activities have been
undertaken in partnership with the private sector. More than $1 billion
has been approved for 800 projects. Through these projects MIF has
become one of the best known organizations with private sector partners
in Latin America and the Caribbean. As the largest provider of
technical assistance in the Region, it is no doubt why this
reauthorization has bipartisan support. Indeed, the Fund provides a
stellar example of how we can best use our resources to promote
development, while reducing poverty and raising the standard of living
of our neighbors. Madam Speaker, I urge support of the bill.
Ms. PRYCE of Ohio. Madam Speaker, I yield back the balance of my
time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Ohio (Ms. Pryce) that the House suspend the rules and
pass the bill, H.R. 4916.
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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