Directs the President to establish a primary mechanism to assist the private sector in coordinating U.S. development programs with private sector investment activities.
Directs the Secretary of State and the Administrator of the U.S. Agency for International Development (USAID) to direct their respective policy and country teams to include private sector consultation in all country, sector, and global development strategies.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2831 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2831
To direct the President to establish an interagency mechanism to
coordinate United States development programs and private sector
investment activities, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 16, 2014
Mr. Isakson (for himself and Mr. Rubio) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To direct the President to establish an interagency mechanism to
coordinate United States development programs and private sector
investment activities, and for other purposes.
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 ``Economic Growth and Development
Act''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The promotion of sustainable economic growth is the
only long-term solution to lifting people out of poverty and
addressing development challenges such as infectious disease,
food security, education, and access to clean water.
(2) Several of the greatest development success stories in
the last 50 years demonstrate how private sector investment and
economic growth are fundamental to lifting populations out of
poverty.
(3) There has been a dramatic shift in the composition of
capital flows to the developing world. Whereas 40 years ago
more than 70 percent of capital flowing to developing countries
was public sector foreign assistance, today 87 percent of
capital flowing to the developing world comes from the private
sector.
(4) Eleven of the 15 largest importers of United States
goods and services are countries that graduated from United
States foreign assistance, and 12 of the 15 fastest growing
markets for United States exports are former United States
foreign assistance recipients.
(5) With 12 departments, 26 agencies, and more than 60
Federal Government offices all involved in the delivery of
United States foreign assistance, it is extremely difficult for
United States businesses to navigate the bureaucracy in search
of opportunities to partner with such United States agencies.
(6) Although many United States development agencies have
taken steps to improve their private sector coordination
capabilities in recent years, these agency-specific strategies
remain opaque and must be integrated into a coherent
interagency coordination structure to engage the private
sector.
(7) President Barack Obama's 2010 Policy Directive on
Global Development created an Interagency Policy Committee
(IPC) for Global Development. However, the IPC has not yet
established a streamlined, interagency mechanism for
coordination with the private sector.
(8) In order to better leverage United States foreign
assistance dollars and to promote sustainable economic
development in partner countries, the private sector should be
consulted during development planning and programming
processes.
(9) Whether it is in the context of country, sector, or
global development strategy, decisions on program
prioritization and resource allocations would benefit greatly
from private sector perspectives and market data.
(10) By consulting with the private sector from the outset,
development programs can be designed to better attract private
sector investment and to promote public-private partnerships in
key development sectors.
(11) The Millennium Challenge Corporation and the
Partnership for Growth both analyze constraints to growth as
part of their planning processes, but these analyses need to be
included in agency country, sector, and global development
strategies to more effectively inform and guide the full
spectrum of United States development programs.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the United States Agency for International
Development.
(2) United states development agencies.--The term ``United
States development agencies'' means the Department of State,
the United States Agency for International Development, the
Millennium Challenge Corporation, the Overseas Private
Investment Corporation, the Trade and Development Agency, the
Inter-American Foundation, and the African Development
Foundation.
(3) Private sector.--The term ``private sector'' means for-
profit United States businesses.
(4) Secretary.--The term ``Secretary'' means the Secretary
of State.
SEC. 4. PURPOSE.
The purpose of this Act is to maximize the impact of United States
development programs by--
(1) enhancing coordination between United States
development agencies and their programs and the private sector
and its investment activities;
(2) integrating private sector input into United States
development agencies planning and programming processes;
(3) institutionalizing analyses of constraints to growth
and investment throughout United States development agencies
planning and programming processes; and
(4) ensuring United States development agencies are
accountable for progress toward improving coordination of
United States development programs and private sector
investment activities.
SEC. 5. INTERAGENCY MECHANISM TO COORDINATE UNITED STATES DEVELOPMENT
PROGRAMS AND PRIVATE SECTOR INVESTMENT ACTIVITIES.
(a) In General.--The President, in consultation with the Secretary,
the Administrator, the Chief Executive Officer of the Millennium
Challenge Corporation, the Department of Commerce, and the heads of
other United States agencies that undertake development efforts, shall
establish a primary mechanism to assist the private sector in
coordinating United States development programs with private sector
investment activities.
(b) Duties.--The mechanism established under subsection (a) shall--
(1) streamline and integrate the various private sector
liaison functions of United States development agencies;
(2) facilitate the use of various development and finance
tools across United States development agencies to attract
greater private sector participation in development activities;
and
(3) establish a single point of contact for the private
sector for partnership opportunities with United States
development agencies.
SEC. 6. INTEGRATING PRIVATE SECTOR CONSULTATION IN COUNTRY, SECTOR, AND
GLOBAL DEVELOPMENT STRATEGIES.
The Secretary and the Administrator shall direct their respective
policy and country teams to include private sector consultation in all
country, sector, and global development strategies, including
integrated country strategies, regional and functional strategies,
country development cooperation strategies, mission strategic resource
plans, and global development strategies.
SEC. 7. ANALYSIS OF CONSTRAINTS TO GROWTH AND INVESTMENT IN FOREIGN
COUNTRIES AND SECTORS.
(a) In General.--The Secretary, the Administrator, and the heads of
other agencies that conduct relevant development activities shall
ensure that rigorous constraints to growth and investment analyses are
available and integrated as a component of all appropriate country,
region, and sector development strategies.
(b) Matters To Be Included.--The analysis required under subsection
(a) shall include, at a minimum, an identification and analysis of--
(1) constraints posed by the inadequacies of critical
infrastructure, rule of law, tax and investment codes, and
customs and regulatory regimes of recipient countries, as
appropriate; and
(2) particular economic sectors that are central to
achieving economic growth, such as agriculture, transportation,
energy, and financial services.
(c) Conduct.--If a credible constraints analysis meeting the
requirements set out in subsection (b) for a particular country,
region, or sector has not already been conducted by another United
States Government entity or multilateral institution, the analysis
shall be conducted by teams composed of representatives of relevant
United States agencies which will consult with international
organizations, the private sector, including representatives from
commercial sectors of recipient countries, and other stakeholders. In
all instances, whether using an existing constraints analysis or a
specially conducted one, the constraints analysis shall be made
available to the public, and for comment by all stakeholders prior to
finalization of development strategies.
(d) Results.--The results of the analysis required under subsection
(a) shall be incorporated into development strategies of United States
development agencies and shall be used to inform and guide resource
allocations.
SEC. 8. REPORT.
Not later than one year after the date of the enactment of this
Act, the President shall transmit to the Committee on Foreign Relations
and the Committee on Appropriations of the Senate and the Committee on
Foreign Affairs and the Committee on Appropriations of the House of
Representatives a report that describes the specific measures that have
been taken to implement this Act and the outcomes that such measures
are intended to produce.
<all>
Introduced in Senate
Read twice and referred to the Committee on Foreign Relations.
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