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`SEC. 1204. ASSISTANCE FOR POPULATION PLANNING.

`(a) POPULATION PLANNING ASSISTANCE- In order to increase the opportunities and motivation for family planning and to reduce the rate of population growth, assistance under this chapter shall include assistance for voluntary population planning.

`(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the President to carry out this section $300,000,000 for fiscal year 1992 and $350,000,000 for fiscal year 1993, in addition to any other amounts made available under this Act for such purpose.

`(c) LIMITATION ON DIVERSION OF POPULATION FUNDS TO OTHER PURPOSES- In implementing requirements or authorities to provide assistance from funds appropriated to carry out this chapter or this title, the amount available to carry out subsection (a) pursuant to the authorizations provided in subsection (b) shall not be reduced by a greater proportion than the amount available to carry out section 1201 pursuant to the authorizations provided in section 1202.

`(d) RESTRICTIONS ON POPULATION ASSISTANCE- Funds for development assistance, economic support assistance, or assistance from the Development Fund for Africa that are used for population planning activities may not be made available--

`(1) to any organization or program which (as determined by the President) supports, or participates in the management of, a program of coercive abortion or involuntary sterilization, or

`(2) to any foreign nongovernmental organization which uses (or if any such funds were made available, would use) funds provided by the United States Government to perform or actively promote abortion as a method of family planning.

Funds made available to carry out this title or chapter 1 or chapter 2 of title V that are made available for population planning activities shall not be denied to nongovernmental organizations or multilateral organizations on the basis of any criterion that is not applicable to foreign governments that receive such funds.

`SEC. 1205. FUNDING FOR THE UNITED NATIONS POPULATION FUND.

`Notwithstanding the foregoing, of the funds appropriated under section 1204(b), $20,000,000 or 16 percent of the amount appropriated (whichever is less) shall be available only for the United Nations Population Fund, subject to the following conditions:

`(1) The United Nations Population Fund shall be required to maintain these funds in a separate account and not commingle them with any other funds.

`(2) None of these funds shall be made available for programs for the People's Republic of China.

`(3) Any agreement entered into by the United States and the United Nations Population Fund to obligate these funds shall expressly state that the full amount granted by such agreement will be refunded to the United States if any United States Funds are used for any family planning programs in the People's Republic of China or for abortions in any country.

`(4) Any agreement entered into by the United States and the United Nations Population Fund to obligate funds earmarked under this paragraph shall expressly state that the full amount granted by such agreement will be refunded to the United States if, during its five-year program which commenced in 1990, the United Nations Population Fund provides more than fifty-seven million dollars for family planning programs in the People's Republic of China.

`Subchapter B--Special Focus Programs and Activities

`SEC. 1221. ASSISTANCE FOR HUMAN RIGHTS AND DEMOCRATIC INITIATIVES.

`(a) AUTHORIZATION AND GENERAL PURPOSES OF ASSISTANCE- The President may use funds made available for development assistance, economic support assistance, and assistance from the Development Fund for Africa to furnish assistance to support the programs and activities described in subsection (b) in order to--

`(1) promote increased adherence to internationally recognized human rights, as set forth in the Universal Declaration of Human Rights;

`(2) improve the performance of institutions of democracy; and

`(3) otherwise promote democracy pursuant to section 1102.

`(b) PROGRAMS AND ACTIVITIES THAT MAY BE SUPPORTED- Funds made available under this section shall be available to support the following:

`(1) Programs and activities to enhance the independence and performance of institutions of democratic governance, including support for judicial, electoral, and legislative processes.

`(2) Programs and activities--

`(A) to encourage the growth of independent associations by strengthening professional, civic, trade union, business, community, and other organizations, and

`(B) to enhance the organizational and leadership skills of the members of such organizations in order to increase citizen participation in democratic processes.

`(3) Programs and activities to increase awareness of internationally recognized human rights (including by increasing the availability of information concerning the status of respect for internationally recognized human rights), improve the effective exercise of those rights, and strengthen respect for the rule of law.

`(4) Programs and activities--

`(A) to support victims of abuses of internationally recognized human rights, including--

`(i) the direct provision of legal services, and

`(ii) the provision of rehabilitation services for victims of torture; and

`(B) to support organizations and institutions seeking to bring to justice those responsible for perpetrating such abuses.

`(5) Programs and activities to support a free and independent press.

`(6) Programs and activities to--

`(A) provide specialized professional training, scholarships, and exchanges for continuing legal education;

`(B) promote the role of the bar in judicial selection, enforcement of ethical standards, and legal reform; and

`(C) increase the availability of legal materials and publications.

`(7) Programs and activities to develop the institutional capacities of legislative bodies.

`(8) Programs and activities to support the revision and modernization of legal codes and procedures, including support for legislative bodies to assist them in accomplishing those ends.

`(c) ELIGIBLE RECIPIENTS OF ASSISTANCE- Assistance under this section may be furnished to countries and organizations, both public and nongovernmental, including national, regional, and international organizations. A substantial portion of the funds made available each fiscal year to carry out this section shall be used for assistance provided to nongovernmental organizations.

`(d) PROHIBITION RELATING TO ELECTIONS- Assistance under this section may not be used to influence the outcome of any election in any country.

`(e) LIMITATION ON USE OF CERTAIN FUNDS- Funds made available for assistance under the Development Fund for Africa may be used under this section only with respect to countries in sub-Saharan Africa.

`SEC. 1222. DEVELOPMENT EDUCATION.

`The President may use funds made available for development assistance, economic support assistance, or assistance from the Development Fund for Africa to support development education programs, with emphasis on those conducted by private voluntary organizations and cooperatives, in order to assist in the education of United States citizens about developing countries, the development process, and the importance to the United States of developing countries.

`SEC. 1223. STRENGTHENING THE CAPACITY OF NONGOVERNMENTAL ORGANIZATIONS, INCLUDING RESEARCH AND EDUCATIONAL INSTITUTIONS.

`The President may use funds made available for development assistance, economic support assistance, or assistance from the Development Fund for Africa to furnish assistance to nongovernmental organizations, including research and educational institutions, in the United States and abroad for the purpose of strengthening their capacity to develop and carry out programs concerned with the economic and social development of developing countries.

`SEC. 1224. MICROENTERPRISE DEVELOPMENT.

`(a) FINDINGS- The Congress makes the following findings and declarations:

`(1) More than a billion people in the developing world are living in poverty, with incomes of less than $370 a year.

`(2) According to the World Bank, mortality for children under 5 averaged 121 per thousand for all developing countries.

`(3) Nearly 40,000 children die each day from malnutrition and disease.

`(4) Poor people themselves can lead the fight against hunger and poverty through the development of self-sustaining microenterprise projects.

`(5) Women in poverty generally are less educated, have a larger workload, and have less access to economic opportunity than their male counterparts. Directly aiding women in the developing world has a positive effect on family incomes, child nutrition, and health and education.

`(6) Microenterprise development offers the opportunity for the poor to play a central role in undertaking strategies for small scale, self-sustaining businesses that can bring them out of poverty.

`(7) The World Bank estimates that there are over 400,000,000 self-employed poor in the developing world and projects that, by the year 2020, 95 percent of African workers will be employed in the informal sector.

`(8) For many people, lack of credit creates an obstacle to the development of self-sustaining enterprises.

`(9) Projects like the Grameen Bank of Bangladesh, the Badan Kredit Kecamatan in Indonesia, and ADEMI in the Dominican Republic have been successful in promoting credit programs that have lent money directly to the poor. Repayment rates in these programs are 95 percent or higher indicating that it is possible to `bank on the poor'.

`(10) The Agency for International Development has been a leader in small and microenterprise development in the past 20 years.

`(11) The Congress earmarked funds for fiscal years 1988, 1989, 1990, and 1991 for microenterprise development activities and has called upon the Agency for International Development to take steps to ensure that its microenterprise activities included a credit component designed to reach the poorest sector of the developing world.

`(12) In 1989, the Agency for International Development created the Office of Small and Microenterprise Development within the Bureau for Private Enterprise to lead and coordinate the Agency's microenterprise efforts.

`(13) In March 1990, the Agency for International Development reported that new spending for microenterprise development was $58,800,000 for 1988 and $83,300,000 for 1989 and that the average loan size for the credit component of the program averaged $329 for 1988 and $387 for 1989. However, less than 10 percent of the spending for the 1988 program, and less than 7 percent of the spending for the 1989 program, was for loans of under $300.

`(14) A February 1991 report by the General Accounting Office indicated that data in that March 1990 report was of `questionable validity' and that the Agency for International Development did not have a system to track detailed information concerning its microenterprise credit activities. Furthermore, the General Accounting Office found that none of the 3 missions that it visited targeted their microenterprise projects specifically to women or to the poorest 20 percent of the population, as recommended by the Congress.

`(15) The Congress recognizes that provision of credit alone may not be sufficient to generate opportunities for successful microenterprise development and that assistance focused in the areas of institutional development, technical assistance, training, and policy reform may also be appropriate for assisting microenterprise development.

`(16) The Agency for International Development has indicated its willingness to explore the idea of holding a series of regional workshops on microenterprise development. The Congress encourages the Agency to include in these workshops opportunities for training Agency personnel and United States and indigenous private voluntary organizations in activities designed to reach the poorest of the poor.

`(b) PURPOSES- The purposes of this section are--

`(1) to provide for the continuation and expansion of the commitment of the Agency for International Development to microenterprise development;

`(2) to increase the amount of assistance going to credit activities designed to reach the poorest sector in developing countries; and

`(3) to increase the percentage of such credit that goes to women beneficiaries.

`(c) GENERAL AUTHORITY- The President, acting through the Administrator, is authorized to provide assistance for programs of credit and other assistance for microenterprises in developing countries. In addition to providing financial resources for direct credit activities of indigenous financial intermediaries, assistance under this section may include assistance for institutional development of such intermediaries (including assistance to enable private voluntary organizations to develop the capability to serve as financial intermediaries), technical assistance, training, and policy reform. Microenterprise credit and related activities assisted under this section shall be carried out primarily through those indigenous financial intermediaries and private voluntary organizations that are oriented toward working directly with the poor and women.

`(d) ELIGIBILITY CRITERIA FOR FINANCIAL INTERMEDIARIES- The mission of the administering agency for this title that is responsible for a country receiving assistance under this section shall establish criteria for determining the financial intermediaries that will receive assistance under this section, taking into account the following:

`(1) The extent to which the recipients of credit from the intermediary lack collateral.

`(2) The extent to which the recipients of credit from the intermediary do not have access to the local formal financial sector.

`(3) The extent to which the recipients of credit from the intermediary have relatively limited amounts of fixed assets.

`(4) The extent to which the recipients of credit from the intermediary are among the poorest people in the country.

`(5) The extent to which interest rates charged by the intermediary on loans reflect the real cost of lending.

`(6) The extent to which the intermediary reaches women as recipients of credit.

`(7) The extent to which the intermediary is oriented toward working directly with the poor and women.

`(e) LOWER TIER FOR POVERTY LENDING ACTIVITIES- A significant portion of the amount made available each fiscal year to carry out this section shall be used to support direct credit assistance by, and the institutional development of, those financial intermediaries with a primary emphasis on assisting those people living in absolute poverty, especially women.

`(f) FOCUS ON WOMEN- The Office of Small and Microenterprise Development in the administering agency for this title shall include in its annual action plans a strategy for increasing the access of women in developing countries to credit and other microenterprise development activities, with the goal of increasing to at least 50 percent the percentage of microenterprise credit that goes to women beneficiaries. This strategy shall be developed in consultation with the agency's Women in Development Office.

`(g) FUNDINGS SOURCES- Funds to carry out this section shall be derived from the following sources:

`(1) Funds available for development assistance.

`(2) Funds available for assistance from the Development Fund for Africa.

`(3) Funds available for economic support assistance.

`(4) Local currency proceeds resulting from the provision of development assistance, assistance from the Development Fund for Africa, or economic support assistance.

`(5) Local currency proceeds available for use under section 306(a) of the Agricultural Trade Development and Assistance Act of 1954 (as amended by section 1512 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624)).

`(6) Local currency proceeds resulting from assistance provided under the Agricultural Trade Development and Assistance Act of 1954 as in effect immediately before the effective date of the amendment made by section 1512 of the Food, Agriculture, Conservation, and Trade Act of 1990.

`(7) Local currency generated under subsection (h).

`(h) AUTHORITY TO GENERATE LOCAL CURRENCIES- In order to generate local currencies for use in providing assistance under this section, the President is authorized to use funds made available for development assistance, economic support assistance, or assistance from the Development Fund for Africa to provide assistance to the governments of developing countries on a loan basis repayable in local currencies, at a rate of exchange to be negotiated by the President and the foreign government. Such loans shall have a rate of interest and a repayment period determined by the President.

`(i) NONAPPLICABILITY OF CERTAIN LAWS- Local currencies used under subsection (g)(7) shall not be subject to the requirements of section 1306 of title 31, United States Code, or other laws governing the use of foreign currencies owned by, owed to, or accruing to the United States.

`(j) FUNDING LEVELS FOR FISCAL YEARS 1992 AND 1993-

`(1) MINIMUM LEVEL OF ASSISTANCE- The Administrator shall use not less than $85,000,000 for fiscal year 1992, and not less than $85,000,000 for fiscal year 1993, for microenterprise assistance pursuant to this section.

`(2) ASSISTANCE FOR THE POOREST SECTORS-

`(A) MINIMUM FUNDING LEVEL- Of the amounts used pursuant to paragraph (1), not less than $20,000,000 for fiscal year 1992 and not less than $30,000,000 for fiscal year 1993 shall be used to support loans having a purchasing power equal to or less than $300 (in United States dollars).

`(B) INITIAL LOANS- Of the loans supported pursuant to subparagraph (A), initial loans to microenterprises should, to the maximum extent practicable, have a purchasing power equal to or less than $150 (in United States dollars).

`(C) CRITERIA FOR ATTRIBUTION TO FUNDING REQUIREMENTS- In addition to amounts made available for direct credit activities involving loans described in subparagraph (A) or (B), amounts used for institutional development of a financial intermediary described in subsection (e) shall be considered to support such loans for purposes of that subparagraph to the same extent as the aggregate amount loaned by such institution represents loans described in that subparagraph.

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