[Congressional Record Volume 140, Number 68 (Thursday, May 26, 1994)] [Extensions of Remarks] [Page E] From the Congressional Record Online through the Government Printing Office [www.gpo.gov] [Congressional Record: May 26, 1994] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] MICROENTERPRISE AS A MEANS TO ALLEVIATE POVERTY ______ HON. SAM GEJDENSON of connecticut in the house of representatives Thursday, May 26, 1994 Mr. GEJDENSON. Mr. Speaker, more than one billion people in the developing world live in absolute poverty. According UNICEF's, State of the World's Children, mortality for children under age 5 averages 104 per 1,000 in developing countries. In the least developing countries, that figure rises to 179 per 1,000; in Africa it rises still further to 181 per 1,000. It is difficult to read these statistics and not to respond with a pro-active policy to stem this loss of children--the world's most vulnerable citizens. Six Members of Congress join with me today in introducing the Microenterprise Development Act of 1994; a bill designed to reduce poverty dramatically. This bill formally authorizes a microenterprise development program within the U.S. Agency for International Development [AID]. The bill includes a strong poverty lending component, loans of $300 or less. For those that follow this issue, you may note that this is not the first time I have introduced language on microenterprise development. It is the first time, however, that the language has been supported by the Administrator of AID. Brian Atwood and his staff have worked with me for months to craft a bill that cannot only be implemented effectively by AID, but be supported by this administration. We believe that the very poor, particularly women, can lead the fight against hunger and absolute poverty through the development of self- sustaining microenterprise projects. It is an unfortunate fact that women in poverty generally are less educated and have less access to economic opportunity than their male counterparts. Therefore, directly aiding women in the developing world will have a positive effect on family incomes, child nutrition, health, and education. 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 and into a world of self-sufficiency and dignity. The World Bank estimates that there are over 400 million 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. For many people, the lack of credit creates an obstacle to the development of self-sustaining enterprises. Projects like those developed by ACCION International, Care, FINCA, Catholic Relief Services, and Save the Children to name a few, have lent money directly to the world's poorest. Repayment rates in these programs average 95 percent indicating that it is possible to bank on the poor. Because these institutions charge interest for these loans, over time the programs themselves become self-sustaining--saving foreign assistance dollars. The Members joining me in introducing this bill, Representatives McKinney, Cantwell, Kennelly, Lowey, Gilman, and Berueter, recognize that the Agency for International Development had been a leader in small and microenterprise development for over 20 years. This bill, which will strengthen AID's current program, as well as increase the agency's work in poverty lending, is the result of extensive negotiations between the Congress, AID, and the many private organizations that implement these programs. A great deal of credit must be given to the Microenterprise Coalition, a coalition of private voluntary organizations, credit unions and cooperatives, which has kept this issue alive and on the front burner for several years. It is my hope that microenterprise will continue to be a major weapon in AID's arsenal in fighting poverty and malnutrition in the developing world. ____________________