22 U.S.C. § 2211 — Findings and policy

Page 682 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2201 1 So in original. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective at the end of the transition period, as defined in section 9681 of this title, see section 9684 of this title. REPORT TO CONGRESS NOT LATER THAN JUNE 30, 1982, ON METHODS FOR ESTIMATING THE IMPACT ON INVEST- MENTS IF INSURANCE OR OTHER SUPPORT IS NOT PRO- VIDED Pub. L. 97–65, § 9(b), Oct. 16, 1981, 95 Stat. 1024, which provided for a report to Congress by the Overseas Pri- vate Investment Corporation on the effect on invest- ments of lack of insurance, was repealed by Pub. L. 99–204, § 17(c)(2), Dec. 23, 1985, 99 Stat. 1677. SUBPART V—DISADVANTAGED CHILDREN IN ASIA § 2201. Assistance to disadvantaged children in Asia (a) Congressional findings The Congress recognizes the humanitarian needs of disadvantaged children in Asian coun- tries where there has been or continues to be a heavy presence of United States military and re- lated personnel in recent years. Moreover, the Congress finds that inadequate provision has been made for the care and welfare of such dis- advantaged children, particularly those fathered by the 1 United States citizens. (b) Authority of President Accordingly, the President is authorized to ex- pend up to $3,000,000 of funds made available under part I of this subchapter, in addition to funds otherwise available for such purposes, to help meet the needs of these disadvantaged chil- dren in Asia by assisting in the expansion and improvement of orphanages, hostels, day care centers, school feeding programs, and health, education, and welfare programs. Assistance provided under this section shall be furnished under the auspices of and by international orga- nizations or private voluntary agencies oper- ating within, and in cooperation with, the coun- tries of Asia where these disadvantaged children reside. (Pub. L. 87–195, pt. I, § 241, as added Pub. L. 95–424, title I, § 116, Oct. 6, 1978, 92 Stat. 952; amended Pub. L. 99–83, title IX, § 903(a), Aug. 8, 1985, 99 Stat. 268.) Editorial Notes PRIOR PROVISIONS A prior section 2201, Pub. L. 87–195, pt. I, § 241, Sept. 4, 1961, 75 Stat. 433; Pub. L. 88–205, pt. I, § 105, Dec. 16, 1963, 77 Stat. 382, related to general authority of Presi- dent respecting development research and use of funds for research into problems of population growth, prior to repeal by Pub. L. 94–161, title III, § 306(1), Dec. 20, 1975, 89 Stat. 858. AMENDMENTS 1985—Subsec. (b). Pub. L. 99–83 substituted ‘‘$3,000,000’’ for ‘‘$2,000,000’’. Statutory Notes and Related Subsidiaries REFERENCES TO PART I DEEMED TO INCLUDE SECTION 2293 References to part I of this subchapter are deemed to include a reference to section 2293 of this title. See sec- tion 2293(d)(1) of this title. EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under sec- tion 2151–1 of this title. EFFECTIVE DATE Section effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as an Effective Date of 1978 Amend- ment note under section 2151 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. SUBPART VI—DEVELOPMENT ASSISTANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES Editorial Notes CODIFICATION Pub. L. 115–428, § 4(j), Jan. 9, 2019, 132 Stat. 5516, sub- stituted ‘‘DEVELOPMENT ASSISTANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES’’ for ‘‘MICROENTERPRISE DEVELOPMENT ASSIST- ANCE’’ in subpart heading. PRIOR PROVISIONS A prior subpart VI, consisting of sections 2211 to 2213, related to Alliance for Progress, prior to repeal by Pub. L. 95–424, title I, § 102(g)(1)(A), title VI, § 605, Oct. 6, 1978, 92 Stat. 942, 961, effective Oct. 1, 1978. Division A—Grant Assistance § 2211. Findings and policy Congress finds and declares the following: (1) Access to financial services and the de- velopment of micro, small, and medium-sized enterprises are vital factors in the stable growth of developing countries, in the develop- ment of free, open, and equitable international economic systems, and in the economic em- powerment of the poor, especially women. (2) It is therefore in the best interest of the United States to facilitate access to financial services and assist the development of micro, small, and medium-sized enterprises in devel- oping countries, particularly enterprises owned, managed, and controlled by women. (3) Access to financial services and the de- velopment of micro, small, and medium-sized enterprises can be supported by programs pro- viding credit, savings, training, technical as- sistance, business development services, and other financial services. (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 in- equality between rural and urban markets, micro, small, and medium-sized enterprise programs should target both rural and urban poor. Page 683 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2211 (5) Microenterprise programs have been suc- cessful and should continue and be expanded to empower vulnerable women in the devel- oping world. The Agency should work to en- sure that recipients of development assistance for micro, small, and medium-sized enterprises under this subpart communicate and work with nongovernmental organizations and gov- ernment organizations to identify and assist victims of trafficking as provided for in sec- tion 7104(a)(1) of this title and women who are victims of or susceptible to other forms of ex- ploitation and violence. (6) Given that microenterprise programs have had some success in empowering disenfranchised groups such as women, devel- opment assistance for micro, small, and me- dium-sized enterprises should also target pop- ulations disenfranchised due to race or eth- nicity in countries where a strong relationship between poverty and race or ethnicity has been demonstrated. (Pub. L. 87–195, pt. I, § 251, as added Pub. L. 108–484, § 3, Dec. 23, 2004, 118 Stat. 3923; amended Pub. L. 115–428, § 4(a), Jan. 9, 2019, 132 Stat. 5512.) Editorial Notes PRIOR PROVISIONS A prior section 2211, Pub. L. 87–195, pt. I, § 251, as added Pub. L. 87–565, pt. I, § 106, Aug. 1, 1962, 76 Stat. 257; amended Pub. L. 88–205, pt. I, § 106(a), Dec. 16, 1963, 77 Stat. 382; Pub. L. 89–583, pt. I, § 105(a), Sept. 19, 1966, 80 Stat. 799; Pub. L. 90–137, pt. I, § 106(a), Nov. 14, 1967, 81 Stat. 451, related to assistance in order to promote the economic development of countries and areas in Latin America, prior to repeal by Pub. L. 95–424, title I, § 102(g)(1)(A), title VI, § 605, Oct. 6, 1978, 92 Stat. 942, 961, effective Oct. 1, 1978. AMENDMENTS 2019—Par. (1). Pub. L. 115–428, § 4(a)(1), substituted ‘‘micro, small, and medium-sized enterprises’’ for ‘‘microenterprise’’ and ‘‘, in the development’’ for ‘‘and in the development’’ and inserted ‘‘, and in the eco- nomic empowerment of the poor, especially women’’ before period at end. Par. (2). Pub. L. 115–428, § 4(a)(2), substituted ‘‘micro, small, and medium-sized enterprises’’ for ‘‘microenter- prise’’ and inserted ‘‘, particularly enterprises owned, managed, and controlled by women’’ before period at end. Par. (3). Pub. L. 115–428, § 4(a)(3), substituted ‘‘micro, small, and medium-sized enterprises’’ for ‘‘microenter- prises’’. Par. (4). Pub. L. 115–428, § 4(a)(4), substituted ‘‘micro, small, and medium-sized enterprise’’ for ‘‘microenter- prise’’. Par. (5). Pub. L. 115–428, § 4(a)(5), substituted ‘‘should continue and be expanded’’ for ‘‘should continue’’ and ‘‘development assistance for micro, small, and medium- sized enterprises’’ for ‘‘microenterprise and micro- finance development assistance’’. Par. (6). Pub. L. 115–428, § 4(a)(6), substituted ‘‘have had some success’’ for ‘‘have been successful’’ and ‘‘de- velopment assistance for micro, small, and medium- sized enterprises should’’ for ‘‘microenterprise pro- grams should’’ and struck out ‘‘, such as countries in Latin America’’ after ‘‘demonstrated’’. Statutory Notes and Related Subsidiaries FINDINGS AND POLICY Pub. L. 108–484, § 2, Dec. 23, 2004, 118 Stat. 3922, pro- vided that: ‘‘Congress finds and declares the following: ‘‘(1) Congress has demonstrated its support for microenterprise development assistance programs through the enactment of two comprehensive micro- enterprise laws: ‘‘(A) The Microenterprise for Self-Reliance Act of 2000 (title I of Public Law 106–309; 114 Stat. 1082) [see Short Title of 2000 Amendments note set out under section 2151 of this title]. ‘‘(B) Public Law 108–31 [see Tables for classifica- tion] (an Act entitled ‘An Act to amend the Micro- enterprise for Self-Reliance Act of 2000 and the For- eign Assistance Act of 1961 to increase assistance for the poorest people in developing countries under microenterprise assistance program under those Acts, and for other purposes’, approved June 17, 2003). ‘‘(2) The report on the effectiveness of the United States Agency for International Development’s microfinance program, prepared by the Consultative Group to Assist the Poor, rated the Agency in the top tier of the 17 donors in this field. ‘‘(3) The Comptroller General, in a report dated No- vember 2003, found that the United States Agency for International Development has met some, but not all, of the key objectives of such microenterprise develop- ment assistance programs. ‘‘(4) The Comptroller General’s report found, among other things, the following: ‘‘(A) Microenterprise development assistance gen- erally can help alleviate some impacts of poverty, improve income levels and quality of life for bor- rowers and provide poor individuals, workers, and their families with an important coping mecha- nism. ‘‘(B) Microenterprise development assistance pro- grams of the United States Agency for Inter- national Development have encouraged women’s participation in microfinance projects and, accord- ing to data of the Agency, women have comprised two-thirds or more of the micro-loan clients in Agency-funded microenterprise projects since 1997. ‘‘(5)(A) The Comptroller General’s report rec- ommends that the Administrator of the United States Agency for International Development review the Agency’s ‘microenterprise results reporting’ sys- tem with the goal of ensuring that its annual report- ing is complete and accurate. ‘‘(B) Specifically, the Administrator should review and reconsider the methodologies used for the collec- tion, analysis, and reporting of data on annual spend- ing targets, outreach to the very poor, sustainability of microfinance institutions, and the contribution of Agency’s funding to the institutions it supports.’’ SENSE OF CONGRESS Pub. L. 108–484, § 7, Dec. 23, 2004, 118 Stat. 3930, pro- vided that: ‘‘It is the sense of Congress that, in car- rying out title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 [22 U.S.C. 2211 et seq.] (as added by section 3 of this Act and amended by sections 4 through 6 of this Act), the Administrator of the United States Agency for International Development— ‘‘(1) where applicable, should ensure that micro- enterprise development assistance provided under such title is matched by recipients with an equal amount of assistance from non-United States Govern- ment sources, including private donations, multilat- eral funding, commercial and concessional borrowing, savings, and program income; ‘‘(2) should include in the report required by section 258 of the Foreign Assistance Act of 1961 [22 U.S.C. 2214] (as added by section 6 of this Act) a description of all matching assistance (as described in paragraph (1)) provided for the prior year by recipients of micro- enterprise development assistance under such title; ‘‘(3) should ensure that recipients of microenter- prise development assistance under such title do not expend an unreasonably large percentage of such as- sistance on administrative costs; ‘‘(4) should not use recipients of microenterprise de- velopment assistance under such title to carry out Page 684 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2211a critical management functions of the Agency, includ- ing functions such as strategy development or overall management of programs in a country; and ‘‘(5) should consult with the appropriate congres- sional committees with respect to the implementa- tion of title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 not later than 90 days after the date of the enactment of this Act [Dec. 23, 2004].’’ REFERENCES Pub. L. 108–484, § 9, Dec. 23, 2004, 118 Stat. 3931, pro- vided that: ‘‘Any reference in a law, regulation, agree- ment, or other document of the United States to sec- tion 108, 131, or 132 of the Foreign Assistance Act of 1961 [former 22 U.S.C. 2151f, 2152a, 2152b] shall be deemed to be a reference to subtitle B of title VI of chapter 2 of part I of the Foreign Assistance Act of 1961 [division B of this subpart], subtitle A of title VI of chapter 2 of part I of such Act [this division], or subtitle C of title VI of chapter 2 of part I of such Act [division C of this subpart], respectively.’’ § 2211a. Authorization; implementation; targeted assistance (a) Authorization The President is authorized to provide assist- ance on a non-reimbursable basis for programs in developing countries to increase the avail- ability of credit, including the use of innovative credit scoring models, savings, financial tech- nology, financial literacy, education, insurance, property rights, and other services to micro, small, and medium-sized enterprise clients lack- ing full access to capital, training, technical as- sistance, and business development services, through— (1) assistance for the purpose of expanding the availability of credit, savings, and other financial and non-financial services to micro, small, and medium-sized enterprise clients, particularly clients owned, managed, and con- trolled by women; (2) assistance for the purpose of training, technical assistance, and business develop- ment services for micro, small, and medium- sized enterprises to enable them to make bet- ter use of credit, to better manage their enter- prises, to conduct market analysis and prod- uct development for expanding domestic and international sales, particularly to United States markets, and to increase their income and build their assets; (3) capacity-building for financial inter- mediaries in order to enable them to better meet the credit, savings, and training needs of micro, small, and medium-sized enterprises; (4) policy, regulatory programs, and research at the country level that improve the environ- ment for micro, small, and medium-sized en- terprises, financial intermediaries, and capital markets and institutions that serve the poor and very poor, especially women; (5) assistance for the purpose of promoting the economic empowerment of women, includ- ing through increased access to financial re- sources and improving property rights, inher- itance rights, and other legal protections; and (6) assistance for the purpose of scaling up evidence-based graduation approaches, which include targeting the very poor and house- holds in ultra-poverty, consumption support, promotion of savings, financial literacy, skills training, and asset transfers. (b) Implementation (1) In general There is authorized to be established within the Agency an office to support the Agency’s efforts to broaden and deepen local financial markets, expand access to appropriate finan- cial products and services, and support the de- velopment of micro, small and medium-sized enterprises. The Office shall be headed by a Di- rector who shall possess technical expertise and ability to offer leadership in the field of fi- nancial sector development. (2) Additional provisions (A) Use of implementing partner organiza- tions Assistance under this section shall empha- size the use of implementing partner organi- zations that best meet the requirements of subparagraph (C). (B) Use of central funding mechanisms In order to ensure that assistance under this subpart is distributed effectively and ef- ficiently, the office shall provide coordina- tion and support for field-implemented pro- grams, including through targeted core sup- port for micro, small, and medium-sized en- terprises and local financial markets. (C) Efficiency and cost-effectiveness Assistance under this section shall meet high standards of efficiency, cost-effective- ness, and sustainability, particularly by pro- tecting the use and funding of local organi- zations in countries in which the Agency in- vests, and shall especially provide the great- est possible resources to the poor and very poor, especially women. When administering assistance under this section, the Adminis- trator shall— (i) take into consideration the percent- age of funds a provider of assistance in- tends to expend on administrative costs; (ii) take all appropriate steps to ensure that the provider of assistance keeps ad- ministrative costs as low as practicable to ensure the maximum amount of funds are used for directly assisting microfinance and microenterprise clients, for estab- lishing sustainable microfinance and microenterprise institutions, or for ad- vancing the microenterprise development field; and (iii) give preference to proposals from providers of assistance that are the most technically competitive and have a reason- able allocation to overhead and adminis- trative costs. (c) Targeted assistance In carrying out sustainable poverty-focused programs under subsection (a)— (1) 50 percent of all micro, small, and me- dium-sized enterprise resources shall be tar- geted to activities that reach the very poor; and (2) 50 percent of all small and medium-sized enterprise resources shall be targeted to ac- tivities that reach enterprises owned, man- aged, and controlled by women.