To amend the Foreign Assistance Act of 1961 to reauthorize microenterprise assistance programs under that Act and to expand sustainable poverty-focused microenterprise programs under that Act by implementing improved poverty measurement methods under those programs.

April 11, 2002

Mr. ROEMER (for himself, Mr. HOUGHTON, Mr. GILMAN, Mr. BERMAN, Mr. ACKERMAN, Ms. ROS-LEHTINEN, Mr. ROHRABACHER, Mr. MORAN of Virginia, Mr. MCDERMOTT, Mr. GREENWOOD, Mr. LUTHER, Mr. KIRK, Mr. HALL of Ohio, Mr. DICKS, Mr. CARSON of Oklahoma, Mr. CONYERS, Mrs. MEEK of Florida, Ms. ESHOO, Mrs. DAVIS of California, Mr. HORN, Mr. ALLEN, Mr. MOORE, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. BISHOP, Ms. CARSON of Indiana, Mr. MCNULTY, Mr. FROST, Mr. PASTOR, Ms. MILLENDER-MCDONALD, Mrs. MORELLA, Mr. PRICE of North Carolina, Mr. LARSON of Connecticut, Mr. SABO, Mr. BOEHLERT, and Mr. BRADY of Pennsylvania) introduced the following bill; which was referred to the Committee on International Relations

To amend the Foreign Assistance Act of 1961 to reauthorize microenterprise assistance programs under that Act and to expand sustainable poverty-focused microenterprise programs under that Act by implementing improved poverty measurement methods under those programs.

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 `Promoting Self-Reliance for the World's Poorest Act of 2002'.

SEC. 2. REAUTHORIZATION OF MICROENTERPRISE ASSISTANCE PROGRAMS.

(a) MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS- Section 108(f)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151f(f)(1)) is amended by inserting `and $2,000,000 for each of the fiscal years 2003 through 2006' after `$1,500,000 for each of fiscal years 2001 and 2002'.

(b) MICROENTERPRISE DEVELOPMENT GRANT ASSISTANCE- Section 131(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 2152a(d)) is amended by inserting `and $200,000,000 for each of the fiscal years 2003 through 2006' after `$155,000,000 for each of the fiscal years 2001 and 2002'.

SEC. 3. POVERTY MEASUREMENT METHODS UNDER MICROENTERPRISE ASSISTANCE PROGRAMS.

(a) IN GENERAL- Section 131(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2152a(b)) is amended--

(1) in paragraph (3)--

(A) in the matter preceding subparagraph (A)--

(i) by striking `targeted to very poor entrepreneurs' in the first sentence and inserting `obligated and expended in support of programs or services under which 50 percent or more of the clients are initially very poor'; and

(ii) by adding at the end of the first sentence before the period the following: `or as those living on the equivalent of less than $1 per day (as determined by the World Bank)'; and

(B) in subparagraph (A)(i), by striking `entrepreneurs' and inserting `clients'; and

(2) by adding at the end the following:

`(6) POVERTY MEASUREMENT METHODS- (A) The Administrator of the United States Agency for International Development shall, in consultation with appropriate microfinance and microenterprise institutions, develop methods to measure the level of poverty of clients of sustainable poverty-focused microenterpise programs under paragraph (1).

`(B) In developing poverty measurement methods under subparagraph (A), the Administrator shall--

`(i) utilize cost-efficient sampling methods as opposed to full census methods, using criteria that correlate with characteristics of either those individuals living in the bottom 50 percent below the official poverty line (as established by the national government of the country) or those individuals living on less than $1 per day (as determined by the World Bank), including criteria such as the availability of the basic necessities of life (including nutritious food, climate-appropriate clothing and shelter, and clean water);

`(ii) utilize cost-efficient sampling methods that are appropriate for application by microfinance and microenterprise institutions on an annual basis; and

`(iii) give priority to methods already in use by practitioner institutions that meet the criteria in clauses (i) and (ii), including measures of loan size.

`(C) The Administrator--

`(i) shall implement interim poverty measurement methods in accordance with this paragraph--

`(I) with respect to not less than 25 sustainable poverty-focused programs by September 30, 2002; and

`(II) with respect to not less than 40 sustainable poverty-focused programs by September 30, 2003; and

`(ii) shall implement final poverty measurement methods in accordance with this paragraph not later than September 30, 2004.

`(D) In carrying out subparagraph (C)(i), the Administrator shall ensure that the programs described in such subparagraph are equitably distributed among the various countries and regions of the world.

`(E) As of October 1, 2004, grant assistance to a program or service under this subsection shall qualify in whole or in part as targeted assistance to the very poor under paragraph (3) if one of the approved final measurement methods verifies that at least 50 percent of the clients of the program or service are among the very poor as described in paragraph (3).'.

(b) REPORT- 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) a description of the interim poverty measurement methods implemented in accordance with section 131(b)(6)(C)(i) of the Foreign Assistance Act of 1961, as added by subsection (a); and

(B) an analysis of the results of the application of such poverty measurement methods to sustainable poverty-focused programs under such section; and

(2) a description of the proposed final poverty measurement methods to be implemented not later than September 30, 2004, in accordance with section 131(b)(6)(C)(ii) of such Act.

END