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USA: Africa Seeds of Hope Act
USA: Africa Seeds of Hope Act
Date distributed (ymd): 990205
Document reposted by APIC
+++++++++++++++++++++Document Profile+++++++++++++++++++++
Region: Continent-Wide
Issue Areas: +economy/development+ +US policy focus+
Summary Contents:
This posting contains an update from Bread for the World and
excerpts from the text of the "Africa: Seeds of Hope Act,"
passed in last year's Congress as a result of lobbying by
Bread for the World and allied groups. Although the Act did
not appropriate any new funds, it mandates greater attention
to African small farmers in U.S. government programs, and
requires a report to Congress within six months on its
implementation.
[APIC note: coming soon ... more on new Africa bills.]
+++++++++++++++++end profile++++++++++++++++++++++++++++++
Bread for the World
1100 Wayne Ave., #1000
Silver Spring, MD 20910
Tel: 301-608-2400; Fax: 301-608-2401
Web: http://www.bread.org
E-mail contact: ralmeida@bread.org
AFRICA: SEEDS OF HOPE--WHAT WILL IT DO?
Refocus Resources On Agriculture And Rural Development
Increasing agricultural productivity is the engine of economic
development in agricultural economies. Agricultural
productivity improvement and rural development are also the
most effective ways to improve conditions for poor people.
Yet, development resources increasingly go to urban needs.
During the past decade, the proportion of USAID's support for
the agriculture sector has dwindled from 36% of its Africa
Bureau budget to less than 15%. Whereas in 1985, there were
258 professional agricultural project staff, today there are
only 75.
The Africa: Seeds of Hope Act supports USAID's Africa Food
Security Initiative to refocus US resources on agriculture and
rural development, increasing productivity, which will lead to
higher rural incomes and improved food security. It also
emphasizes the critical importance of consulting with rural
poor people in designing, conducting and evaluating
development programs.
Provide A Necessary Complement To Trade And Investment
Initiatives
"Unfortunately, there are some on Capitol Hill who believe
trade liberalization alone can remedy all of Africa's woes.
And equally wrongheaded are those views in the
non-governmental organization community that believe that
trade liberalization will only hurt Africa's poor. The Africa:
Seeds of Hope Act bridges these disparate and unnecessarily
conflicting ideologies with a reconciling view. That view is
that liberalized trade plus targeted foreign assistance toward
Africa's small farmers can best help sub-Saharan Africa
prosper." --Rep. Doug Bereuter
Introduce Innovative Development Strategies
New Outlets For Microcredit
Microenterprise programs make credit accessible to low-income
people, stimulating small enterprise development. USAID has
consistently directed microcredit assistance at small
businesses across a range of sectors except agricultural
production. The Africa: Seeds of Hope Act requires USAID to
develop a comprehensive plan for providing microenterprise
assistance in sub-Saharan Africa and to initiate new
microcredit efforts to improve the capacity and efficiency of
agricultural production.
New Investment Relationships
The Overseas Private Investment Corporation (OPIC) is an
independent government corporation that promotes United States
private investment in developing countries and emerging
markets. It has historically worked solely with US
corporations investing abroad.
The Africa: Seeds of Hope Act encourages OPIC to expand its
operations to US businesses, nongovernmental organizations,
and private voluntary organizations that work directly with
African rural populations. OPIC can support rural development
in Africa by extending its services, including loans,
guaranties, and insurance, to organizations, such as the
African Development Foundation, Africare, Agriculture
Cooperatives Development International, TechnoServe, Winrock
International, and others, that directly serve the needs of
women, small farmers, and small rural entrepreneurs.
This novel structure for private investment, based on the
concept of participatory development, acknowledges the
importance of farmer-owned business organizations in promoting
African development and provides the institutional support
necessary for them to prosper.
Coordination Of Agricultural Research
The Africa: Seeds of Hope Act requires USAID and USDA to
develop a plan to coordinate the work of US land-grant
universities, international agricultural research centers, and
national agricultural research and extension centers in
sub-Saharan Africa. Current national expenditures on
agricultural research are typically less than 1% of
agricultural GDP.
Therefore, in addition to benefiting the participating US
institutions, it will help develop the capacities of African
researchers and extension agents and agricultural educational
and research institutions and will contribute to the
development of sustainable agricultural practices that
increase the productivity of small-scale African farmers.
Enhancement Of Private Enterprise In African Agriculture
The Africa: Seeds of Hope Act supports private producer-owned
cooperative purchasing and marketing associations and
strengthens the capacity of sub-Saharan African farmers to
participate in national and international private markets. It
encourages USAID to facilitate partnerships between US and
African cooperatives and private businesses to enhance the
capacity and technical and marketing expertise of African
farmer-owned businesses.
Flexibility In Title II Nonemergency Food Aid
The Africa: Seeds of Hope Act directs USAID to be more
flexible in allowing food aid resources to be used in a
variety of programs that help improve the health, living
conditions and incomes of poor people in developing countries.
Nongovernmental organizations can receive government support
in developing programs that best meet local needs and provide
aid to the "poorest of the poor".
Response To Emergency Food Crises
The Africa: Seeds of Hope Act establishes the Bill Emerson
Humanitarian Trust, a self-replenishing emergency grain
reserve for foreign assistance.
The Trust is an innovative response to the need for a faster,
more cost-effective mechanism to provide food assistance
during humanitarian crises. It enables the USDA to purchase
commodities for overseas emergencies in advance when prices
are low instead of waiting for emergencies when commodity
prices may be high. The Trust helps US farmers by buying
commodities.
With the Trust in place, US private voluntary organizations
will be assured of fast access to resources when an
international emergency arises. Governments of the crisis
countries will have increased confidence in their ability to
effectively respond to the food needs of their people, thus
discouraging vulnerable citizens from becoming refugees. In
short, by allowing for a timely response to food emergencies,
the Trust will provide increased security for those living
under the threat of famine in Africa and elsewhere in the
world.
Mandate Accountability
The Africa: Seeds of Hope Act mandates that six months after
its enactment, USAID submit to Congress a report on the
agency's plans and progress toward implementation of the key
provisions of the Act. This gives advocacy groups and other
development organizations the ability to monitor the progress
of its implementation. The Act is a framework for
collaboration between the business, government and civil
society organizations that share permanent interests in
sustainable African development. It can provide a useful focus
for grassroots education and Africa constituency building
efforts.
Excerpts from H.R. 4283
(full text available at http://thomas.loc.gov)
H.R.4283 An Act To support sustainable and broad-based
agricultural and rural development in sub-Saharan Africa, and
for other purposes.
SEC. 2. FINDINGS AND DECLARATION OF POLICY.
(a) FINDINGS- Congress finds the following:
(1) The economic, security, and humanitarian interests of the
United States and the nations of sub-Saharan Africa would be
enhanced by sustainable, broad-based agricultural and rural
development in each of the African nations.
(2) According to the Food and Agriculture Organization, the
number of undernourished people in Africa has more than
doubled, from approximately 100,000,000 in the late 1960s to
215,000,000 in 1998, and is projected to increase to
265,000,000 by the year 2010. According to the Food and
Agriculture Organization, the term "under nutrition" means
inadequate consumption of nutrients, often adversely affecting
children's physical and mental development, undermining their
future as productive and creative members of their
communities.
(3) Currently, agricultural production in Africa employs about
two-thirds of the workforce but produces less than one-fourth
of the gross domestic product in sub-Saharan Africa, according
to the World Bank Group.
(4) African women produce up to 80 percent of the total food
supply in Africa according to the International Food Policy
Research Institute.
(5) An effective way to improve conditions of the poor is to
increase the productivity of the agricultural sector.
Productivity increases can be fostered by increasing research
and education in agriculture and rural development.
(6) In November 1996, the World Food Summit set a goal of
reducing hunger worldwide by 50 percent by the year 2015 and
encouraged national governments to develop domestic food plans
and to support international aid efforts.
(7) Although the World Bank Group recently has launched a
major initiative to support agricultural and rural
development, only 10 percent, or $1,200,000,000, of its total
lending to sub-Saharan Africa for fiscal years 1993 to 1997
was devoted to agriculture.
(8)(A) United States food processing and agricultural sectors
benefit greatly from the liberalization of global trade and
increased exports.
(B) Africa represents a growing market for United States food
and agricultural products. Africa's food imports are projected
to rise from less than 8,000,000 metric tons in 1990 to more
than 25,000,000 metric tons by the 2020.
(9)(A) Increased private sector investment in African
countries and expanded trade between the United States and
Africa can greatly help African countries achieve food
self-sufficiency and graduate from dependency on international
assistance.
(B) Development assistance, technical assistance, and training
can facilitate and encourage commercial development in Africa,
such as improving rural roads, agricultural research and
extension, and providing access to credit and other resources.
(10)(A) Several United States private voluntary organizations
have demonstrated success in empowering Africans through
direct business ownership and helping African agricultural
producers more efficiently and directly market their products.
(B) Rural business associations, owned and controlled by
farmer shareholders, also greatly help agricultural producers
to increase their household incomes.
(b) DECLARATION OF POLICY- It is the policy of the United
States, consistent with title XII of part I of the Foreign
Assistance Act of 1961, to support governments of sub-Saharan
African countries, United States and African nongovernmental
organizations, universities, businesses, and international
agencies, to help ensure the availability of basic nutrition
and economic opportunities for individuals in sub-Saharan
Africa, through sustainable agriculture and rural development.
TITLE I--ASSISTANCE FOR SUB-SAHARAN AFRICA
SEC. 101. AFRICA FOOD SECURITY INITIATIVE.
(a) ADDITIONAL REQUIREMENTS IN CARRYING OUT THE INITIATIVE- In
providing development assistance under the Africa Food
Security Initiative, or any comparable or successor program,
the Administrator of the United States Agency for
International Development--
(1) shall emphasize programs and projects that improve the
food security of infants, young children, school-age children,
women and food-insecure households, or that improve the
agricultural productivity, incomes, and marketing of the rural
poor in Africa;
(2) shall solicit and take into consideration the views and
needs of intended beneficiaries and program participants
during the selection, planning, implementation, and evaluation
phases of projects;
(3) shall favor countries that are implementing reforms of
their trade and investment laws and regulations in order to
enhance free market development in the food processing and
agricultural sectors; and
(4) shall ensure that programs are designed and conducted in
cooperation with African and United States organizations and
institutions, such as private and voluntary organizations,
cooperatives, land-grant and other appropriate universities,
and local producer-owned cooperative marketing and buying
associations, that have expertise in addressing the needs of
the poor, small-scale farmers, entrepreneurs, and rural
workers, including women.
(b) SENSE OF THE CONGRESS- It is the sense of the Congress
that, if there is an increase in funding for sub-Saharan
programs, the Administrator of the United States Agency for
International Development should proportionately increase
resources to the Africa Food Security Initiative, or any
comparable or successor program, for fiscal year 2000 and
subsequent fiscal years in order to meet the needs of the
countries participating in such Initiative.
SEC. 102. MICROENTERPRISE ASSISTANCE.
(a) BILATERAL ASSISTANCE- In providing microenterprise
assistance for sub-Saharan Africa, the Administrator of the
United States Agency for International Development shall, to
the extent practicable, use credit and microcredit assistance
to improve the capacity and efficiency of agriculture
production in sub-Saharan Africa of small-scale farmers and
small rural entrepreneurs. In providing assistance, the
Administrator should use the applied research and technical
assistance capabilities of United States land-grant
universities.
(b) MULTILATERAL ASSISTANCE-
(1) IN GENERAL- The Administrator of the United States Agency
for International Development shall continue to work with
other countries, international organizations (including
multilateral development institutions), and entities assisting
microenterprises and shall develop a comprehensive and
coordinated strategy for providing microenterprise assistance
for sub-Saharan Africa.
(2) ADDITIONAL REQUIREMENT- In carrying out paragraph (1), the
Administrator should encourage the World Bank Consultative
Group to Assist the Poorest to coordinate the strategy
described in such paragraph.
SEC. 103. SUPPORT FOR PRODUCER-OWNED COOPERATIVE MARKETING
ASSOCIATIONS.
(a) PURPOSES- The purposes of this section are--
(1) to support producer-owned cooperative purchasing and
marketing associations in sub-Saharan Africa;
(2) to strengthen the capacity of farmers in sub-Saharan
Africa to participate in national and international private
markets and to promote rural development in sub-Saharan
Africa;
(3) to encourage the efforts of farmers in sub-Saharan Africa
to increase their productivity and income through improved
access to farm supplies, seasonal credit, technical expertise;
and
(4) to support small businesses in sub-Saharan Africa as they
grow beyond microenterprises.
(b) SUPPORT FOR PRODUCER-OWNED COOPERATIVE MARKETING
ASSOCIATIONS-
(1) ACTIVITIES-
(A) IN GENERAL- The Administrator of the United States Agency
for International Development is authorized to utilize
relevant foreign assistance programs and initiatives for
sub-Saharan Africa to support private producer-owned
cooperative marketing associations in sub-Saharan Africa,
including rural business associations that are owned and
controlled by farmer shareholders.
(B) ADDITIONAL REQUIREMENTS- In carrying out subparagraph (A),
the Administrator--
(i) shall take into account small-scale farmers, small rural
entrepreneurs, and rural workers and communities; and
(ii) shall take into account the local-level perspectives of
the rural and urban poor through close consultation with these
groups, consistent with section 496(e)(1) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2293(e)(1)). ...
SEC. 104. AGRICULTURAL AND RURAL DEVELOPMENT ACTIVITIES OF THE
OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) PURPOSE- The purpose of this section is to encourage the
Overseas Private Investment Corporation to work with United
States businesses and other United States entities to invest
in rural sub-Saharan Africa, particularly in ways that will
develop the capacities of small-scale farmers and small rural
entrepreneurs, including women, in sub-Saharan Africa.
(b) SENSE OF THE CONGRESS- It is the sense of the Congress
that--
(1) the Overseas Private Investment Corporation should
exercise its authority under law to undertake an initiative to
support private agricultural and rural development in
sub-Saharan Africa, including issuing loans, guaranties, and
insurance, to support rural development in sub-Saharan Africa,
particularly to support intermediary organizations that--
(A) directly serve the needs of small-scale farmers, small
rural entrepreneurs, and rural producer-owned cooperative
purchasing and marketing associations;
(B) have a clear track-record of support for sound business
management practices; and
(C) have demonstrated experience with participatory
development methods; and
(2) the Overseas Private Investment Corporation should utilize
existing equity funds, loan and insurance funds, to the extent
feasible and in accordance with existing contractual
obligations, to support agriculture and rural development in
sub-Saharan Africa.
SEC. 105. AGRICULTURAL RESEARCH AND EXTENSION ACTIVITIES.
(a) DEVELOPMENT OF PLAN- The Administrator of the United
States Agency for International Development, in consultation
with the Secretary of Agriculture and appropriate Department
of Agriculture agencies, especially the Cooperative State,
Research, Education and Extension Service (CSREES), shall
develop a comprehensive plan to coordinate and build on the
research and extension activities of United States land-grant
universities, international agricultural research centers, and
national agricultural research and extension centers in
sub-Saharan Africa. ...
This material is being reposted for wider distribution by the
Africa Policy Information Center (APIC). APIC's primary
objective is to widen the policy debate in the United States
around African issues and the U.S. role in Africa, by
concentrating on providing accessible policy-relevant
information and analysis usable by a wide range of groups and
individuals.
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