[Congressional Record (Bound Edition), Volume 146 (2000), Part 13]
[House]
[Pages 18470-18472]
[From the U.S. 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
       (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?

[[Page 18471]]

  There was no objection.
  Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
  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 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

[[Page 18472]]

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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