article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Social Investment and Economic Development Fund for the Americas Act of 2003''. SEC. 2. FINDINGS; STATEMENT OF POLICY. (a) Findings.--Congress finds the following: (1) The historic economic, political, cultural, and geographic relationships among the countries of the Western Hemisphere are unique and of continuing special significance to the United States. (2) The interests of the countries of the Western Hemisphere are more interrelated today than ever before. Consequently, sound economic, social, and democratic progress in each of the countries continues to benefit other countries, and lack of it in any country may have serious repercussions in others. (3) Following the historic Summits of the Americas--the 1994 Summit in Miami, the 1998 Summit in Santiago, Chile, and the 2001 Summit in Quebec City, Canada--the heads of state of the countries of the Western Hemisphere accepted the formidable challenge of economic and social integration in and between their respective countries. (4) To make progress toward economic and social integration, there is a compelling need to focus on the social development of the people of the Americas which, in turn, will promote the economic and political development of the region. (5) Investment in social development in the Americas, including investment in human and social capital, specifically in education, health, housing, and labor markets with the goal of combating social exclusion and social ills, will consolidate political democracy and the rule of law and promote regional economic integration and trade in the region. (6) The challenge of achieving economic integration between one of the world's most developed economies and some of the poorest and most vulnerable countries requires a special effort to promote social equality, develop skills, and modernize the infrastructure in poorer countries that will enable the people of these countries to maximize the amount of benefits accrued from economic integration. (7) The particular challenge facing social and economic development in Latin America is the historic and persistent highly unequal distribution of wealth. Latin America suffers from the most unequal distribution of wealth in the world with huge inequities in the distribution of assets including education, land, and credit. (8) Latin America also confronts the challenge of an increasing number of poor people. As of today, approximately one-third of the population lives in poverty and increasing numbers live in extreme poverty. Poverty exists in all Latin American countries but 70 percent of the region's poor live in the five largest middle-income countries. (9) Marginalized groups, including indigenous populations, people of African descent, women, people with disabilities, and rural populations, are socially excluded and suffer from poverty, stigma, and discrimination. (10) Democratic values are dominant throughout the Americas, and nearly all governments in the region have come to power through democratic elections. (11) Nonetheless, existing democratic governments and their constituent institutions remain fragile and face critical challenges including effective democratic civilian authority over these institutions, including the military, the consolidation or establishment of independent judicial institutions and the rule of law, and the elimination of corruption. (12) The prosperity, security, and well-being of the United States is linked directly to peace, prosperity, and democracy in the Americas. The entire region benefits by reducing poverty, strengthening the middle class, and promoting the rule of law which will also increase markets for United States goods and create a better environment for regional investment by United States businesses. (13) Section 101 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151) establishes as a principal objective of United States foreign assistance the ``encouragement and sustained support of the people of developing countries in their efforts to acquire the knowledge and resources essential to development and to build the economic, political, and social institutions which will improve the quality of their lives''. (14) It is in the national interests of the United States to assist developing countries in the Western Hemisphere as they implement the economic and political policies which are necessary to achieve equitable economic growth. (15) The Summit of the Americas has directly charged the multilateral institutions of the Americas, including the Organization of American States (OAS), the Inter-American Development Bank (IADB), and the new Inter-American Agency for Cooperation and Development with mobilizing private-public sector partnerships among industry and civil society to help achieve equitable development objectives. (16) By supporting the purposes and objectives of development and applying such purposes and objectives to the Americas, a Social Investment and Economic Development Fund for the Americas can advance the national interests of the United States and can directly improve the lives of the poor and marginalized groups, encourage broad-based economic growth while protecting the environment, build human capital and knowledge, support meaningful participation in democracy, and promote peace and justice in the Americas. (b) Statement of Policy.--It is, therefore, the policy of the United States-- (1) to promote market-based principles, economic integration, social development, and trade in and between countries of the Americas by-- (A) nurturing public-private partnerships and microenterprise development; (B) improving the quality of life and investing in human capital, specifically targeting education, health and disease prevention, and housing; (C) strengthening the rule of law through improved efficiency and transparency in government services; and (D) reducing poverty and eliminating the exclusion of marginalized populations, including people of African descent, indigenous groups, women, and people with disabilities; and (2) to establish an investment fund for the Western Hemisphere to advance the national interests of the United States, directly improve the lives of the poor and marginalized, encourage broad-based economic growth while protecting the environment, build human capital and knowledge, support meaningful participation in democratic institutions and processes, and promote peace and justice in the Americas. SEC. 3. AMENDMENT TO FOREIGN ASSISTANCE ACT OF 1961. Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the following: ``CHAPTER 13--SOCIAL INVESTMENT AND ECONOMIC DEVELOPMENT FUND FOR THE AMERICAS ``SEC. 499H. AUTHORIZATION OF ASSISTANCE. ``(a) In General.--The President, acting through the Administrator of the United States Agency for International Development, shall provide assistance to reduce poverty and foster increased economic opportunity in the countries of the Western Hemisphere by-- ``(1) nurturing public-private partnerships and microenterprise development; ``(2) improving the quality of life and investing in human capital, specifically targeting education, health and disease prevention, and housing; ``(3) strengthening the rule of law through improved efficiency and transparency in government services; and ``(4) reducing poverty and eliminating the exclusion of marginalized populations, including people of African descent, indigenous groups, women, and people with disabilities. ``(b) Terms and Conditions.--Assistance under this chapter may be provided on such other terms and conditions as the President may determine. ``SEC. 499I. TECHNICAL REVIEW COMMITTEE. ``(a) In General.--There is established within the United States Agency for International Development a technical review committee. ``(b) Membership.--The President, by and with the advice and consent of the Senate, shall appoint to serve on the technical review committee-- ``(1) individuals with technical expertise with respect to the development of Latin America and the Caribbean; and ``(2) citizens of the United States with technical expertise with respect to development projects and business experience. Technical expertise shall be the sole criterion in making appointments to the technical review committee. ``(c) Duties.--The technical review committee shall review all projects proposed for funding using assistance provided under section 499H(a), and make recommendations to the President with respect to the guidelines to be used in evaluating project proposals and the suitability of the proposed projects for funding. ``(d) Conflicts of Interest.--A member of the technical review committee shall not be permitted to review an application submitted by an organization with which the member has been or is affiliated. ``SEC. 499J. REPORT. ``The President shall prepare and transmit to the Committee on International Relations of the House of Representatives, the Committee on Foreign Relations of the Senate, and other appropriate congressional committees an annual report on the specific programs, projects, and activities carried out under this chapter during the preceding year, including an evaluation of the results of such programs, projects, and activities. ``SEC. 499K. AUTHORIZATION OF APPROPRIATIONS. ``(a) In General.--There are authorized to be appropriated to carry out this chapter $250,000,000 for each of the fiscal years 2005 through 2009. ``(b) Additional Authorities.--Amounts appropriated pursuant to subsection (a)-- ``(1) may be referred to as the `United States Social Investment and Economic Development Fund for the Americas'; ``(2) are authorized to remain available until expended; and ``(3) are in addition to amounts otherwise available for such purposes. ``(c) Funding Limitation.--Not more than 7 percent of the amounts appropriated pursuant to subsection (a) for a fiscal year may be used for administrative expenses.''. SEC. 4. AMENDMENT TO THE INTER-AMERICAN DEVELOPMENT BANK ACT. The Inter-American Development Bank Act (22 U.S.C. 283--283z-10) is amended by adding at the end the following: ``SEC. 39. SOCIAL INVESTMENT AND ECONOMIC DEVELOPMENT FUND FOR THE AMERICAS. ``(a) In General.--The Secretary of the Treasury shall instruct the United States Executive Director at the Bank to use the voice, vote, and influence of the United States to urge the Bank to establish an account to be known as the `Social Investment and Economic Development Fund for the Americas' (in this section referred to as the `Fund'), which is to be operated and administered by the Board of Executive Directors of the Bank consistent with subsection (b). The United States Governor of the Bank may vote for a resolution transmitted by the Board of Executive Directors which provides for the establishment of such an account, and the operation and administration of the account consistent with subsection (b). ``(b) Governing Rules.-- ``(1) Use of funds.--The Fund shall be used to provide assistance to reduce poverty and foster increased economic opportunity in the countries of the Western Hemisphere by-- ``(A) nurturing public-private partnerships and microenterprise development; ``(B) improving the quality of life and investing in human capital, specifically targeting education, health and disease prevention, and housing; ``(C) strengthening the rule of law through improved efficiency and transparency in government services; and ``(D) reducing poverty and eliminating the exclusion of marginalized populations, including people of African descent, indigenous groups, women, and people with disabilities. ``(2) Application for funding through a competitive process.--Any interested person or organization may submit an application for funding by the Fund. ``(3) Technical review committee.-- ``(A) In general.--The Fund shall have a technical review committee. ``(B) Membership.--The Board of Executive Directors of the Bank shall appoint to serve on the technical review committee-- ``(i) individuals with technical expertise with respect to the development of Latin America and the Caribbean; and ``(ii) citizens of the United States with technical expertise with respect to development projects and business experience. Technical expertise shall be the sole criterion (other than citizenship pursuant to clause (ii)) in making appointments to the technical review committee. ``(C) Duties.--The technical review committee shall review all projects proposed for funding by the Fund, and make recommendations to the Board of Executive Directors of the Bank with respect to the guidelines to be used in evaluating project proposals and the suitability of the proposed projects for funding. ``(D) Conflicts of interest.--A member of the technical review committee shall not be permitted to review an application submitted by an organization with which the member has been or is affiliated. ``(4) Review of proposed projects.--Not more frequently than annually, the Board of Executive Directors of the Bank shall review and make decisions on applications for projects to be funded by the Fund, in accordance with procedures which provide for transparency. The Board of Executive Directors shall provide advance notice to all interested parties of any date on which such a review will be conducted. ``(c) Contribution Authority.--To the extent and in the amounts provided in advance in appropriations Acts, the United States Governor of the Bank may contribute to the Fund $1,250,000,000. ``(d) Limitations on Authorization of Appropriations.-- ``(1) In general.--For the contribution authorized by subsection (c), there are authorized to be appropriated for payment to the Secretary of the Treasury $250,000,000 for each fiscal year beginning with the fiscal year in which the resolution described in subsection (a) is adopted. ``(2) Additional authorities.--Amounts appropriated pursuant to paragraph (1)-- ``(A) are authorized to remain available until expended; and ``(B) are in addition to amounts otherwise available for such purposes. ``(3) Funding limitation.--Not more than 7 percent of the amounts appropriated pursuant to paragraph (1) for a fiscal year may be used for administrative expenses.''. SEC. 5. SENSE OF CONGRESS. It is the sense of Congress that the countries of the Western Hemisphere should collectively provide assistance equal to the amount of United States bilateral assistance provided under chapter 13 of part I of the Foreign Assistance Act of 1961 (as added by section 3(a) of this Act) and multilateral assistance provided by the Social Investment and Economic Development Fund for the Americas under section 39 of the Inter-American Development Bank Act (as added by section 4 of this Act) for the same purpose for which such assistance was provided.
summary: Social Investment and Economic Development Fund for the Americas Act of 2003 - Sets forth the policy of the United States to: (1) promote market-based principles, economic integration, social development, and trade in and between countries of the Americas; and (2) establish an investment fund for the Western Hemisphere to advance the national interests of the United States, improve the lives of the poor and marginalized, encourage broad-based economic growth while protecting the environment, build human capital and knowledge, support meaningful participation in democratic institutions and processes, and promote peace and justice in the Americas. Amends the Foreign Assistance Act of 1961 to require the President to provide assistance to reduce poverty and foster increased economic opportunity in the countries of the Western Hemisphere by: (1) nurturing public-private partnerships and microenterprise development; (2) improving the quality of life and investing in human capital; (3) strengthening the rule of law through improved efficiency and transparency in government services; and (4) reducing poverty and eliminating the exclusion of marginalized populations. Establishes a technical review committee to review the projects proposed for assistance and to make recommendations to the President with respect to the guidelines to be used in evaluating project proposals and the suitability of the proposed projects for funding. Amends the Inter-American Development Bank Act to require the Secretary of the Treasury to instruct the U.S. Executive Director at the Bank to urge the Bank to establish an account to be operated and administered consistent with the above guidelines. Establishes a technical review committee in the same manner as discussed above. Expresses the sense of Congress that the countries of the Western Hemisphere should collectively provide assistance equal to the amount of U.S. bilateral and multilateral assistance provided.