International Financial Institutions Act
INTERNATIONAL FINANCIAL INSTITUTIONS ACT
Public Law 95–118, as amended
International Financial Institutions Act
118
117–263
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
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EN
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International Financial Institutions Act
1356
95
1977-10-03
International Financial Institutions Act
[Public Law 95–118; Approved October 3, 1977]
[As Amended Through P.L. 117–263, Enacted December 23, 2022]
[Currency: This publication is a compilation of the text of Public Law 95–118. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/]
[Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]

AN ACT
To provide for increased participation by the United States in the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Asian Development Bank and the Asian Development Fund, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

short title
Section 1.
This Act may be cited as the International Financial Institutions Act.1
^1
This section was added by sec. 1361(a) of Public Law 97–35 (95 Stat. 745). The short title is not codified.
TITLE I—

PURPOSE AND POLICY; DECLARATION OF CONGRESSIONAL INTENT IN RESPECT TO CONTINUED PARTICIPATION OF THE UNITED STATES GOVERNMENT IN INTERNATIONAL FINANCIAL INSTITUTIONS FOSTERING ECONOMIC DEVELOPMENT IN LESS DEVELOPED COUNTRIES
Sec. 101.
[22 U.S.C. 262c]
(a)
It is the sense of Congress that—
(1)
for humanitarian, economic, and political reasons, it is in the national interest of the United States to assist in fostering economic development in the less developed countries of this world;
(2)
the development-oriented international financial institutions have proved themselves capable of playing a significant role in assisting economic development by providing to less developed countries access to capital and technical assistance and soliciting from them maximum self-help and mutual cooperation;
(3)
this has been achieved with minimal risk of financial loss to contributing countries;
(4)
such institutions have proved to be an effective mechanism for sharing the burden among developed countries of stimulating economic development in the less developed world; and
(5)
although continued United States participation in the international financial institutions is an important part of efforts by the United States to assist less developed countries, more of this burden should be shared by other developed countries. As a step in that direction, in future negotiations, the United States should work toward aggregate contributions to future replenishments to international financial institutions covered by this Act not to exceed 25 per centum.
(b)
The Congress recognizes that economic development is a long-term process needing funding commitments to international financial institutions. It also notes that the availability of funds for the United States contribution to international financial institutions is subject to the appropriations process.
TITLE II—

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT2
^2
Title II amended the Bretton Woods Agreements Act by adding section 27.
TITLE III—

INTERNATIONAL FINANCE CORPORATION3
^3
Title III amended the International Finance Corporation Act by adding section 11.
TITLE IV—

INTERNATIONAL DEVELOPMENT ASSOCIATION4
^4
Title IV amended the International Development Association Act by adding section 16.
TITLE V—

ASIAN DEVELOPMENT BANK AND ASIAN DEVELOPMENT FUND5
^5
Title V amended the Asian Development Bank Act by adding sections 22 and 23.
TITLE VI—

AFRICAN DEVELOPMENT FUND6
^6
Title VI amended the African Development Fund Act by adding section 212.
TITLE VII—

HUMAN RIGHTS
Sec. 701.7
[22 U.S.C. 262d]
(a)8
The United States Government, in connection with its voice and vote in the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the African Development Fund, the Asian Development Bank, the African Development Bank, the European Bank for Reconstruction and Development, and the International Monetary Fund,9 shall advance the cause of human rights, including by seeking to channel assistance toward countries other than those whose governments engage in—
^7
Section 701 was invoked in sec. 586G(a)(5) of the Iraq Sanctions Act of 1990, as contained in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101–513; 104 Stat. 1979 at 2052).
See also secs. 568, 576, and 579 in Title V of the Foreign Operations, 1403.Export Financing, and Related Programs Appropriations Act, 1997 (sec. 101(c) of title I of Public Law 104–208; 110 Stat. 3009).
See also sec. 1621 of this Act.
^8
Sec. 823(a) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103–236; 108 Stat. 512), provided the following:
``(a) In General.—The Secretary of the Treasury shall instruct the United States executive director to each of the international financial institutions described in section 701(a) of the International Financial Institutions Act (22 U.S.C. 262d(a)) to use the voice and vote of the United States to oppose any use of the institution's funds to promote the acquisition of unsafeguarded special nuclear material or the development, stockpiling, or use of any nuclear explosive device by any non-nuclear-weapon state.''.
See also amendment and note at subsec. (b)(3) of this section.
^9
The reference to the African Development Bank was added by sec. 1342(b) of Public Law 97–35 (95 Stat. 743). Reference to the European Bank for Reconstruction and Development and the International Monetary Fund was added by sec. 1008(a) of the FREEDOM Support Act (Public Law 102–511; 106 Stat. 3361).
(1)
a 10 pattern of gross violations of internationally recognized human rights, such as torture or cruel, inhumane, or degrading treatment or punishment, prolonged detention without charges, or other flagrant denial to life, liberty, and the security of person; or
^{10}
Sec. 1004(1) of Public Law 98–181 (97 Stat. 1286) struck out the word “consistent” which previously appeared at this point.
(2)
provide refuge to individuals committing acts of international terrorism by hijacking aircraft.
(b)
Further, the Secretary of the Treasury shall instruct each Executive Director of the above institutions to consider in carrying out his duties:
(1)
specific actions by either the executive branch or the Congress as a whole on individual bilateral assistance programs because of human rights considerations;
(2)
the extent to which the economic assistance provided by the above institutions directly benefit the needy people in the recipient country;
(3)11
whether the recipient country—
^{11}
Sec. 823(b) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103–236; 108 Stat. 512), amended and restated para. (3) of subsec. (b). It formerly read as follows:
``(3) whether the recipient country has detonated a nuclear device or is not a State Party to the Treaty on Non-Proliferation of Nuclear Weapons or both; and''.
(A)
is seeking to acquire unsafeguarded special nuclear material (as defined in section 830(8) of the Nuclear Proliferation Prevention Act of 1994) or a nuclear explosive device (as defined in section 830(4) of that Act);
(B)
is not a State Party to the Treaty on the Non-Proliferation of Nuclear Weapons; or
(C)
has detonated a nuclear explosive device; and
(4)
in relation to assistance for the Socialist Republic of Vietnam, the People's Democratic Republic of Laos, Russia and the other independent states of the former Soviet Union (as defined in section 3 of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992),12 and Democratic Kampuchea (Cambodia), the responsiveness of the governments of such countries in providing a more substantial accounting of Americans missing in action.
^{12}
Sec. 1008(b) of the FREEDOM Support Act (Public Law 102–511; 106 Stat. 3362) inserted “Russia and the other independent states of the former Soviet Union (as defined in section 3 of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992),” after “Laos,”.
(c)
The United States Government, in connection with its voice and vote in the institutions listed in subsection (a), shall seek to channel assistance to projects which address basic human needs of the people of the recipient country.13
^{13}
Sec. 541 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2518) consolidated several reporting requirements into new secs. 1701–1703 and titles XVIII and XIX of the International Financial Institutions Act and repealed duplicative requirements in other legislation. Sec. 541(e)(8) repealed the last sentence of this subsec.
(d)
In determining whether a country is in gross violation of internationally recognized human rights standards, as defined by the provisions of subsection (a), the United States Government shall give consideration to the extent of cooperation of such country in permitting an unimpeded investigation of alleged violations of internationally recognized human rights by appropriate international organizations including, but not limited to, the International Committee of the Red Cross, Amnesty International, the International Commission of Jurists, and groups or persons acting under the authority of the United Nations or the Organization of American States.
(e)
The United States Executive Directors of the institutions listed in subsection (a) are authorized and instructed to oppose any loan, any extension of financial assistance, or any technical assistance to any country described in subsection (a) (1) or (2), unless such assistance is directed specifically to programs which serve the basic human needs of the citizens of such country.
(f)
The 14 Secretary of the Treasury or his delegate shall consult frequently and in a timely manner with the chairmen and ranking minority members of the Committee on Banking, Finance and Urban Affairs 15 of the House of Representatives and of the Committee on Foreign Relations of the Senate 16 to inform them regarding any prospective changes in policy direction toward counties which have or recently have had poor human rights records.
^{14}
This sentence was enacted as par. (2) of subsec. (g) by sec. 501(b) of Public Law 96–259 (94 Stat. 432). Sec. 541 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2518) consolidated several reporting requirements into new secs. 1701–1703 and titles XVIII and XIX of the International Financial Institutions Act and repealed duplicative requirements in other legislation. Sec. 541(d)(4) repealed subsec. (g)(1). Sec. 562(b)(2) of Public Law 101–513 (104 Stat. 2034) subsequently struck out paragraph designation “(2)” at the beginning of this paragraph.
^{15}
Sec. 1(a)(2) of Public Law 104–14 (109 Stat. 186) provided that references to the Committee on Banking, Finance and Urban Affairs of the House of Representatives shall be treated as referring to the Committee on Banking and Financial Services of the House of Representatives.
^{16}
Sec. 562(b)(2) of Public Law 101–513 (104 Stat. 2034) struck out “specified in paragraph (1)” and inserted in lieu thereof “of the Committee on Banking, Finance and Urban Affairs of the House of Representatives and of the Committee on Foreign Relations of the Senate”. See also note 14.
(g)
In determining whether the government of a country engages in a pattern of gross violations of internationally recognized human rights, as described in subsection (a), the President shall give particular consideration to whether a foreign government—
(1)
has engaged in or tolerated particularly severe violations of religious freedom, as defined in section 3 of the International Religious Freedom Act of 1998; or
(2)
has failed to undertake serious and sustained efforts to combat particularly severe violations of religious freedom when such efforts could have been reasonably undertaken.17
^{17}
Added by Public Law 105–292, 112 Stat. 2810. Note, duplicates section (g).
Sec. 702.
Section 28 of the Inter-American Development Bank Act, as amended (22 U.S.C. 283y), section 211 of the Act of May 31, 1976 (22 U.S.C. 290g–9), and section 15 of the International Development Association Act, as amended (22 U.S.C. 284m), are repealed.
Sec. 703.
[22 U.S.C. 262c note]
(a)
The Secretary of State and the Secretary of the Treasury shall initiate a wide consultation designed to develop a viable standard for the meeting of basic human needs and the protection of human rights and a mechanism for acting together to insure that the rewards of international economic cooperation are especially available to those who subscribe to such standards and are seen to be moving toward making them effective in their own system of governance.
(b)
Not later than one year after the date of enactment of this Act, the Secretary of State and the Secretary of the Treasury shall report to the President of the Senate and the Speaker of the House of Representatives on the progress made in carrying out this section.
Sec. 704.18
[22 U.S.C. 262e]
The President shall direct the United States Executive Directors of such international financial institutions to take all appropriate actions to keep the salaries and benefits of the employees of such institutions to levels comparable to salaries and benefits of employees of private business and the United States Government in comparable positions.
^{18}
Sec. 532 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997 (sec. 101(c) of title I of Public Law 104–208; 110 Stat. 3009), provided the following:
``compensation for united states executive directors to international
financial institutions
``Sec. 532. (a) No funds appropriated by this Act may be made as payment to any international financial institution while the United States Executive Director to such institution is compensated by the institution at a rate which, together with whatever compensation such Director receives from the United States, is in excess of the rate provided for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while any alternate United States Director to such institution is compensated by the institution at a rate in excess of the rate provided for an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.
``(b) For purposes of this section, `international financial institutions' are: the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the Asian Development Fund, the African Development Bank, the African Development Fund, the International Monetary Fund, the North American Development Bank, and the European Bank for Reconstruction and Development.''.
Sec. 705.
[22 U.S.C. 262d note]
The President shall direct the United States Governor of the International Bank for Reconstruction and Development, the United States Governor of the International Finance Corporation, the United States Governor of the International Development Association, the United States Governor of the Inter-American Development Bank, the United States Governor of the Asian Development Bank, and the United States Governor of the African Development Fund, to consult with the other Governors of those institutions concerning adoption of an amendment to the Articles of Agreement of their respective institutions to establish human rights standards to be considered in connection with each application for assistance.
TITLE VIII—

LIGHT CAPITAL TECHNOLOGY
Sec. 801.
[22 U.S.C. 262f]
The United States Government, in connection with its voice and vote in the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the African Development Fund, the Asian Development Bank, and the African Development Bank,19 shall promote the development and utilization of light capital technologies, otherwise known as intermediate, appropriate, or village technologies, by such international institutions as major facets of their development strategies, with major emphasis on the production and conservation of energy through light capital technologies.
^{19}
The reference to the African Development Bank was added by sec. 1342(c) of Public Law 97–35 (95 Stat. 743).
TITLE IX—

HUMAN NUTRITION IN DEVELOPING COUNTRIES
Sec. 901.
[22 U.S.C. 262g]
The Congress declares it to be the policy of the United States, in connection with its voice and vote in the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the African Development Fund, the Asian Development Fund, and the Asian Development Bank, to combat hunger and malnutrition and to encourage economic development in the developing countries, with emphasis on assistance to those countries that are determined to improve their own agricultural production, by seeking to channel assistance for agriculturally related development to projects that would aid in fulfilling domestic food and nutrition needs and in alleviating hunger and malnutrition in the recipient country. The United States representatives to the institutions named in this section shall oppose any loan or other financial assistance for establishing or expanding production for export of palm oil, sugar, or citrus crops if such loan or assistance will cause injury to United States producers of the same, similar, or competing agricultural commodity.
TITLE X—

EFFECTIVE DATE
Sec. 1001.
[22 U.S.C. 282r note]
This Act shall take effect on the date of its enactment, except that no funds authorized to be appropriated by any amendment contained in title II, III, IV, V, or VI may be available for use or obligation prior to October 1, 1977.
TITLE XI—

TARGETING ASSISTANCE TO THE NEEDY
Sec. 1101.
[22 U.S.C. 262g–1]
(a)
The Congress finds that there is a need for concerted international efforts to deal with the problems of malnutrition, low life expectancy, childhood disease, underemployment, and low productivity in developing countries.
(b)
The Congress notes with approval that the Inter-American Development Bank, under the terms of its Fifth Replenishment, has adopted the target that 50 percent of its lending benefit the poorest groups and has developed a usable methodology for determining the proportion of its lending which benefits such groups.
Sec. 1102.
[22 U.S.C. 262g–2]
(a)
The Secretary of the Treasury shall consult with representatives of other member countries of the International Bank for Reconstruction and Development, the International Development Association, the Asian Development Bank, the African Development Fund, and the African Development Bank (if the United States becomes a member of that Bank), for the purpose of establishing guidelines within each of those institutions which specify that, in a manner consistent with the purposes and charters of those institutions, a specified proportion of the annual lending by each institution shall be designed to benefit needy people, primarily by financing sound, efficient, productive, self-sustaining projects designed to benefit needy people in developing countries, thus helping poor people improve their conditions of life.
(b)
The Congress finds that projects to construct basic infrastructure, to expand productive capacity (including private enterprise), and to address social problems can all meet the objectives of this section if they are designed and implemented properly. For the purposes of this title, “needy people” means those people living in “absolute” or “relative” poverty as determined under the standards employed by the International Bank for Reconstruction and Development and the International Development Association.
Sec. 1103.20
* * *
[Repealed—1989]
^{20}
Sec. 541 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2518) consolidated several reporting requirements into new secs. 1701–1703 and titles XVIII and XIX of the International Financial Institutions Act and repealed duplicative requirements in other legislation. Sec. 541(d)(4) repealed sec. 1103.
TITLE XII—

CONGRESSIONAL CONSULTATIONS
Sec. 1201.
[22 U.S.C. 262g–3]
The Secretary of the Treasury or his designee shall consult with the Chairman and the Ranking Minority Member of—
(1)
the Committee on Banking, Finance and Urban Affairs 21 of the House of Representatives, the Committee on Appropriations of the House of Representatives, and the appropriate subcommittee of each such committee, and
^{21}
Sec. 1(a)(2) of Public Law 104–14 (109 Stat. 186) provided that references to the Committee on Banking, Finance and Urban Affairs of the House of Representatives shall be treated as referring to the Committee on Banking and Financial Services of the House of Representatives.
(2)
the Committee on Foreign Relations of the Senate, the Committee on Appropriations of the Senate, and the appropriate subcommittee of each such committee,
for the purpose of discussing the position of the executive branch and the views of the Congress with respect to any international negotiations being held to consider future replenishments or capital expansions of any multilateral development bank which may involve an increased contribution or subscription by the United States. Such consultation shall be made (A) not later than 30 days before the initiation of such international negotiations, (B) during the period in which such negotiations are being held, in a frequent and timely manner, and (C) before a session of such negotiations is held at which the United States representatives may agree to such a replenishment or capital expansion.
TITLE XIII—

THE ENVIRONMENT 22
^{22}
Titles XIII through XVI were added by sec. 701 of H.R. 3750, as introduced by the House Committee on Banking, Finance and Urban Affairs, on December 11, 1987, and enacted into law by Title I of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988, (sec. 101(e) of the Continuing Appropriations, 1988; Public Law 100–202; 101 Stat. 1329 at 1329–134).
See also sec. 533 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101–513; 104 Stat. 2013; 22 U.S.C. 262l), and sec. 532 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993 (Public Law 102–391; 106 Stat. 1666; 22 U.S.C. 262l), relating to environment and global warming.
Sec. 1301.
[22 U.S.C. 262m]
The Congress finds that—
(1)
United States assistance to the multilateral development banks should promote sustainable use of natural resources and the protection of the environment, public health, and the status of indigenous peoples in developing countries;
(2)
multilateral development bank projects, policies, and loans have failed in some cases to provide adequate safeguards for the environment, public health, natural resources, and indigenous peoples;
(3)
many development efforts of the multilateral development banks are more enduring and less costly if based on consultations with directly affected population groups and communities;
(4)
developing country governments sometimes do not ensure that appropriate policies and procedures are in place to use natural resources sustainably or consult with affected population groups and communities, where costs could be reduced or benefits made more enduring; and
(5)
in general, the multilateral development banks do not yet provide systematic and adequate assistance to their borrowers to encourage sustainable resource use and consultation with affected communities, where costs could be reduced or benefits made more enduring.
Sec. 1302.
[22 U.S.C. 262m–1]
The Secretary of the Treasury and the Secretary of State, in cooperation with the Administrator of the Agency for International Development, shall vigorously promote mechanisms to strengthen the environmental performance of these banks. These mechanisms shall include strengthening organizational, administrative, and procedural arrangements within the banks which will substantially improve management of assistance programs necessary to ensure the sustainable use of natural resources and the protection of indigenous peoples.
Sec. 1303.
[22 U.S.C. 262m–2]
(a)
(1)
In the course of reviewing assistance proposals of the multilateral development banks, the Administrator of the Agency for International Development, in consultation with the Secretary of the Treasury and the Secretary of State, shall ensure that other agencies and appropriate United States embassies and overseas missions of the Agency for International Development are instructed to analyze, where feasible, the environmental impacts of multilateral development loans well in advance of such loans' approval by the relevant institutions to determine whether the proposals will contribute to the sustainable development of the borrowing country.
(2)
To the extent possible, such reviews shall address the economic viability of the project, adverse impacts on the environment, natural resources, public health, and indigenous peoples, and recommendations as to measures, including alternatives, that could eliminate or mitigate adverse impacts.
(3)
If there is reason to believe that any such loan is particularly likely to have substantial adverse impacts, the Administrator of the Agency for International Development, in consultation with the Secretary of the Treasury and the Secretary of State, shall ensure that an affirmative investigation of such impacts is undertaken in consultation with relevant Federal agencies. If not classified under the national security system of classification, the information collected pursuant to this paragraph shall be made available to the public.
(b)
(1)
The Secretary of the Treasury shall instruct the Executive Directors representing the United States at the multilateral development banks as defined in section 1307(g)23 to urge the management and other directors of each such bank, to provide sufficient time between the circulation of assistance proposals and bank action on those proposals, in order to permit their evaluation by major shareholder governments.
^{23}
Section 593(b)(1) of division D of Public Law 108–447 (118 Stat. 229) provides for amendments as follows:
(1) by inserting “(1)” after “(b)” and replacing “International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank” with the phrase “multilateral development banks as defined in section 1307(g)”; and
The latter amendment probably should have included the word “and” before “the African Development Bank” in the matter purported to be struck. Such amendment was executed to reflect the probable intent of Congress.
(2)
The Secretary of the Treasury shall instruct such Executive Directors to work with other countries' Executive Directors and multilateral development bank management to—
(A)
improve the procedures of each multilateral development bank for providing its board of directors with a complete and accurate record regarding public consultation before they vote on proposed projects with significant environmental implications; and
(B)
revise bank procedures to consistently require public consultation on operational policy proposals or revisions that have significant environmental or social implications.
(3)
Progress under this subsection shall be incorporated into Treasury's required annual report to Congress on the environmental performance of the multilateral development banks.
(c)
Based on the information obtained during the evaluation referred to in subsection (a) and other available information, the Administrator of the Agency for International Development, in consultation with the Secretary of the Treasury and the Secretary of State, shall identify those assistance proposals likely to have adverse impacts on the environment, natural resources, public health, or indigenous peoples. The proposals so identified shall be transmitted to the Committee on Appropriations and the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Appropriations and the Committee on Foreign Relations of the Senate, not later than June 30 and December 31 of each year following the date of enactment of this title.
(d)
The Secretary of the Treasury shall forward reports concerning information received under subsection (a) to the Executive Director representing the United States in the appropriate bank with instructions to seek to eliminate or mitigate adverse impacts which may result from the proposal.
Sec. 1304.
[22 U.S.C. 262m–3]
The Secretary of the Treasury, in consultation with the Secretary of State and the Administrator of the Agency for International Development, shall create a system for cooperative exchange of information with other interested member countries on assistance proposals of the multilateral development banks.
Sec. 1305.
[22 U.S.C. 262m–4]
The Secretary of the Treasury shall instruct the United States Executive Directors of the multilateral development banks to support the strengthening of educational programs within each multilateral development bank to improve the capacity of mid-level managers to initiate and manage environmental aspects of development activities, and to train officials of borrowing countries in the conduct of environmental analyses.
Sec. 1306.
[22 U.S.C. 262m–5]
(a)
The Secretary of the Treasury shall instruct the United States Executive Director of each multilateral development bank to vigorously and continuously urge that each bank identify and develop methods and procedures to insure that in addition to economic and technical considerations, unquantified environmental values be given appropriate consideration in decisionmaking, and include in the documents circulated to the Board of Executive Directors concerning each assistance proposal a detailed statement, to include assessment of the benefits and costs of environmental impacts and possible mitigating measures, on the environmental impact of the proposed action, any adverse environmental effects which cannot be avoided if the proposal is implemented, and alternatives to the proposed action.
(b)
The Secretary of the Treasury shall instruct the United States Executive Director of each multilateral development bank to vigorously and continuously promote—
(1)
increases in the proportion of loans supporting environmentally beneficial policies, projects, and project components;
(2)
the establishment of environmental programs in appropriate policy-based loans for the purpose of improving natural resource management, environmental quality, and protection of biological diversity;
(3)
increases in the proportion of staff with professional training and experience in ecology and related areas and in the areas of anthropological and sociological impact analysis to ensure systematic appraisal and monitoring of environmental and sociocultural impacts of projects and policies;
(4)
active and systematic encouragement of participation by borrowing countries nongovernmental environmental, community and indigenous peoples' organizations at all stages of preparations for country lending strategies, policy based loans, and loans that may have adverse environmental or sociocultural impacts; and
(5)
full availability to concerned or affected non-governmental and community organization, early in the preparation phase and at all subsequent stages of planning of full documentary information concerning details of design and potential environmental and sociocultural impacts of proposed loans.
SEC. 1307.24
[22 U.S.C. 262m–7]

ASSESSMENT OF ENVIRONMENTAL IMPACT OF PROPOSED MULTILATERAL DEVELOPMENT BANK ACTIONS.
(a)

Assessment Required Before Favorable Vote on Proposal.—
The Secretary of the Treasury shall instruct the United States Executive Director of each multilateral development bank not to vote in favor of any proposal (including but not limited to any loan, credit, grant, guarantee) which would result or be likely to result in significant impact on the environment, unless the Secretary, after consultation with the Secretary of State and the Administrators of the United States Agency for International Development and the Environmental Protection Agency, determines that for at least 120 days before the date of the vote—
^{24}
Added by sec. 521 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2511), as sec. 1308. The same Act repealed the standing sec. 1307 and redesignated this sec. as sec. 1307. The repealed sec. 1307 (formerly at 22 U.S.C. 262m–6) had required an annual report be submitted by Secretary of the Treasury, with consultation from others in the Administration, to several committees on progress being made to implement the objectives of title XIII.
(1)
an assessment analyzing the environmental impacts of the proposed action, including associated and cumulative impacts, and of alternatives to the proposed action, has been completed by the borrower or the bank and has been made available to the board of directors of the bank; and
(2)
such assessment or a comprehensive summary of the assessment (with proprietary information redacted) has been made available to affected groups, and local nongovernmental organizations and notice of its availability in the country and at the bank has been posted on the bank's website.
(b)

Access to Assessments in All Member Countries.—
The Secretary of the Treasury shall seek the adoption of policies and procedures, through discussions and negotiations with the other member countries of the multilateral development banks and with the management of such banks, which result in access by governmental agencies and interested members of the public of such member countries, to environmental assessments or documentary information containing comprehensive summaries of such assessments which discuss the environmental impact of prospective projects and programs being considered by such banks. Such assessments or summaries should be made available to such governmental agencies and interested members of the public at least 120 days before scheduled board action, and public participation in review of the relevant environmental information should be encouraged.
(c)

Consideration of Assessment.—
The Secretary of the Treasury shall—
(1)
ensure that an environmental impact assessment or comprehensive summary of such assessment described in subsection (a) accompanies loan proposals through the agency review process; and
(2)
take into consideration recommendations from all other interested Federal agencies and interested members of the public.
(d)

Development of Procedures for Systematic Environmental Assessment.—
The Secretary of the Treasury, in consultation with other Federal agencies, including the Environmental Protection Agency, the Department of State, and the Council on Environmental Quality, shall—
(1)
instruct the United States Executive Director of each multilateral development bank to initiate discussions with the other executive directors of the respective bank and to propose that the respective bank develop and make available to member governments of, and borrowers from, the respective bank, within 18 months after the date of the enactment of this section, a procedure for the systematic environmental assessment of development projects for which the respective bank provides financial assistance, taking into consideration the Guidelines and Principles for Environmental Impact Assessment promulgated by the United Nations Environmental Programme and other bilateral or multilateral assessment procedures; and
(2)
in determining the position of the United States on any action proposed to be taken by a multilateral development bank, develop and prescribe procedures for the consideration of, among other things—
(A)
the environmental impact assessment of the action described in subsection (a);
(B)
interagency and public review of such assessment; and
(C)
other environmental review and consultation of such action that is required by other law.
(e)

Use of United States Personnel.—
The Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of the Interior, the Administrator of the Environmental Protection Agency, the Chairman of the Council on Environmental Quality, the Administrator of the Agency for International Development, and the Administrator of the National Oceanic and Atmospheric Administration, shall—
(1)
make available to the multilateral development banks, without charge, appropriate United States Government personnel to assist in—
(A)
training bank staff in environmental impact assessment procedures;
(B)
providing advice on environmental issues;
(C)
preparing environmental studies for projects with potentially significant environmental impacts; and
(D)
preparing documents for public release, and developing procedures to provide for the inclusion of interested nongovernmental organizations in the environmental review process; and
(2)
encourage other member countries of such banks to provide similar assistance.
(f)

Reports.—
(1)

In general.—
The Secretary of the Treasury shall submit to the Committees on Foreign Relations and Environment and Public Works of the Senate and the Committee on Banking, Finance and Urban Affairs 25 of the House of Representatives—
^{25}
Sec. 1(a)(2) of Public Law 104–14 (109 Stat. 186) provided that references to the Committee on Banking, Finance and Urban Affairs of the House of Representatives shall be treated as referring to the Committee on Banking and Financial Services of the House of Representatives.
(A)
not later than the end of the 1-year period beginning on the date of the enactment of this section, a progress report on the efficacy of efforts by the United States to encourage consistent and timely environmental impact assessment of actions proposed to be taken by the multilateral development banks and on the progress made by the multilateral development banks in developing and instituting environmental assessment policies and procedures; and
(B)
not later than January 1, 1993, a detailed report on the matters described in subparagraph (A).
(2)

Availability of reports.—
The reports required by paragraph (1) shall be made available to the member governments of, and the borrowers from, the multilateral development banks, and to the public.
(g)

Multilateral Development Bank Defined.—
In this title, the term “multilateral development bank” means the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Multilateral Investment Guarantee Agency, the African Development Bank, the African Development Fund, the Asian Development Bank, the Inter-American Development Bank, the Inter-American Investment Corporation, any other institution (other than the International Monetary Fund) specified in section 1701(c)(2), and any subsidiary of any such institution.26
^{26}
Sec. 560(b)(3) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 (Public Law 105–118; 111 Stat. 2426), added subsec. (g).
SEC. 1308.
[22 U.S.C. 262m–8]

CLIMATE CHANGE MITIGATION AND GREENHOUSE GAS ACCOUNTING.
(a)

Use of Greenhouse Gas Accounting.—
The Secretary of the Treasury shall seek to ensure that multilateral development banks (as defined in section 1701(c)(4) of this Act) adopt and implement greenhouse gas accounting in analyzing the benefits and costs of individual projects (excluding those with de minimus greenhouse gas emissions) for which funding is sought from the bank.
(b)

Expansion of Climate Change Mitigation Activities.—
The Secretary of the Treasury shall work to ensure that the multilateral development banks (as defined in section 1701(c)(4)) expand their activities supporting climate change mitigation by—
(1)
significantly expanding support for investments in energy efficiency and renewable energy, including zero carbon technologies;
(2)
reviewing all proposed infrastructure investments to ensure that all opportunities for integrating energy efficiency measures have been considered;
(3)
increasing the dialogue with the governments of developing countries regarding—
(A)
analysis and policy measures needed for low carbon emission economic development; and
(B)
reforms needed to promote private sector investments in energy efficiency and renewable energy, including zero carbon technologies; and
(4)
integrate low carbon emission economic development objectives into multilateral development bank country strategies.
(c)

Report to Congress.—
Not later than 1 year after the date of the enactment of this section, and annually thereafter, the Secretary of the Treasury shall submit a report on the status of efforts to implement this section to the Committee on Foreign Relations and the Committee on Appropriations of the Senate and the Committee on Financial Services and the Committee on Appropriations of the House of Representatives.
TITLE XIV—

AGRICULTURAL AND COMMODITY PRODUCTION
Sec. 1401.
[22 U.S.C. 262n]
The Congress hereby finds the following:
(1)
The financing of certain programs and projects by multilateral development banks has been of great concern insofar as the programs and projects have been detrimental to the interests of American farmers and the agribusiness sector.
(2)
an increase in rural income in developing countries will generally result in an increase in exports of United States agricultural and food products.
Sec. 1402.
[22 U.S.C. 262n–1]
The Secretary of the Treasury, after consultations with the Secretary of Agriculture and the Secretary of the Interior (to the extent appropriate) on markets and prices for commodities, shall periodically instruct the United States Executive Director of each multilateral development bank to work with other executive directors of the respective bank to continue to—
(1)
support activities which result in broad increases in income and employment and enhance purchasing power in developing countries, particularly among the rural poor; and
(2)
encourage diversification away from single crop or product economies in developing countries to help reduce wide fluctuations in commodity prices and the adverse impact of abrupt changes in the terms of trade.
Sec. 1403.
[22 U.S.C. 262n–2]
(a)
The Secretary of the Treasury shall take all appropriate steps to discourage multilateral development banks from financing projects which will result in the production of commodities, products, or minerals for export that will be in surplus in world markets at the time such production begins.
(b)
The Secretary of the Treasury shall instruct the United States Executive Directors of the multilateral development banks to use the voice and vote of the United States in the respective banks—
(1)
to oppose financing by the respective bank of projects which produce, or will produce, commodities, products, or minerals for export if—
(A)
the commodity, product, or mineral is subsidized in a manner which is inconsistent with Article XVI.3 of the GATT 1994 as defined in section 2(1)(B) of the Uruguay Round Agreements Act or Article 3.1(a) of the Agreement on Subsidies and Countervailing Measures referred to in section 101(d)(12) of that Act or Article 10 of the Agreements on Interpretation and Application of Articles VI, XVI, and XXIII of the General Agreement on Tariffs and Trade; and
(B)
support from financial sources other than multilateral development banks does not accompany such financing; and
(2)
to oppose financing by the respective bank for production of a commodity, product, or mineral for export which—
(A)
is likely to be in surplus on world markets at the time such production begins; and
(B)
when exported, is likely to cause injury to United States producers within the meaning of Article 15 of the Agreement on Subsidies and Countervailing Measures referred to in subparagraph (A).
SEC. 1404.
[22 U.S.C. 262N–3]

REDUCTION OF BARRIERS TO AGRICULTURAL TRADE.
The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to use aggressively the voice and vote of the United States to vigorously promote policies to encourage the opening of markets for agricultural commodities and products by requiring recipient countries to make efforts to reduce trade barriers.
TITLE XV—

OTHER POLICIES
Sec. 1501.
[22 U.S.C. 2620]
(a)
In any negotiations concerning replenishment or an increase in capital for any multilateral development bank, the Secretary of the Treasury shall propose, as a principal point for negotiations, the following institutional reforms:
(1)
The establishment of a unified program within each multilateral development bank to assess the extent to which bank lending benefits the least advantaged members of society, particularly women and the poor, and to increase the extent to which such members benefit from future bank lending.
(2)
The establishment of an office or other administrative procedures within each multilateral development bank to—
(A)
provide in-country liaison services for nongovernmental organizations operating at the community level;
(B)
monitor the impact of project and nonproject lending on local populations; and
(C)
ensure compliance with loan conditionalities, especially loan conditionalities relating to the protection of the quality of life of the poor and the rights of aboriginal minorities.
(3)
A major increase in the number of members of the professional staff of each regional multilateral development bank with training in environmental or social impact analysis or natural science, including—
(A)
recruitment of additional permanent professional staff; and
(B)
training programs for existing staff members in these subject areas.
(4)
With respect to the International Bank for Reconstruction and Development, the establishment of a program for policy-based lending to promote the sustainable use of renewable resources and the protection of the environment in borrowing countries.
(5)
An increase in the length of any review period established by any multilateral development bank for board review of staff recommendations by such time as would be sufficient to allow the governments of member countries to review and comment on the staff recommendations before any action is taken by the board of directors of such bank on the recommendations.
(b)
The Secretary of the Treasury shall instruct the United States Executive Director of each multilateral development bank to request the management of such bank to prepare an annual report which identifies and describes the most exemplary lending practices or loan components implemented during the preceding year with respect to each of the following lending policy goals for each major borrowing country or country group:
(1)
Benefit to the poor.
(2)
Involvement of nongovernmental organizations and local and indigenous populations in loan design, implementation, planning, and monitoring.
(3)
Integration of, consideration of, and concern for environmental quality and the sustainable use of natural resources into loan design, implementation, planning, and monitoring.
(4)
Recognition of and support for the economic and social development of women.
SEC. 1502.27
[22 U.S.C. 262o–1]

MILITARY SPENDING BY RECIPIENT COUNTRIES; MILITARY INVOLVEMENT IN THE ECONOMIES OF RECIPIENT COUNTRIES.
(a)

Consideration of Commitment To Achieving Certain Goals.—
^{27}
Added by sec. 526(d) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995 (Public Law 103–306; 108 Stat. 1633).
(1)

In general.—
The Secretary of the Treasury shall instruct the United States Executive Directors of the international financial institutions (as defined in section 1701(c)(2)) to promote growth in the international economy by taking into account, when considering whether to support or oppose loan proposals at these institutions, the extent to which the recipient government has demonstrated a commitment to achieving the following goals:
(A)
to provide accurate and complete data on the annual expenditures and receipts of the armed forces;
(B)
to establish good and publicly accountable governance, including an end to excessive military involvement in the economy; and
(C)
to make substantial reductions in excessive military spending and forces.
(b)

Steps To Achieve Goals Required.—
The Secretary of the Treasury shall instruct the United States Executive Directors of the international financial institutions (as so defined) to promote a policy at each institution under which—
(1)
the respective institution monitors closely and, through regular policy consultations with recipient governments, seeks to influence the composition of public expenditure in favor of funding growth and development priorities and away from unproductive expenditure, including excessive military expenditures;
(2)
the respective institution supports lending operations which assist efforts of recipient governments to promote good governance, including public participation, and reduce military expenditures; and
(3)
the allocation of resources and the extension of credit by the respective institution takes into account the performance of recipient governments in the areas of good governance, ending excessive military involvement in the economy and reducing excessive military expenditures.
SEC. 1503.
[22 U.S.C. 262o–2]

ADVOCACY OF POLICIES TO ENHANCE THE GENERAL EFFECTIVENESS OF THE INTERNATIONAL MONETARY FUND.
(a)

In General.—
The Secretary of the Treasury shall instruct the United States Executive Director of the International Monetary Fund to use aggressively the voice and vote of the Executive Director to do the following:
(1)
Vigorously promote policies to increase the effectiveness of the International Monetary Fund in structuring programs and assistance so as to promote policies and actions that will contribute to exchange rate stability and avoid competitive devaluations that will further destabilize the international financial and trading systems.
(2)
Vigorously promote policies to increase the effectiveness of the International Monetary Fund in promoting market-oriented reform, trade liberalization, economic growth, democratic governance, and social stability through—
(A)
establishing an independent monetary authority, with full power to conduct monetary policy, that provides for a noninflationary domestic currency that is fully convertible in foreign exchange markets;
(B)
opening domestic markets to fair and open internal competition among domestic enterprises by eliminating inappropriate favoritism for small or large businesses, eliminating elite monopolies, creating and effectively implementing antitrust and antimonopoly laws to protect free competition, and establishing fair and accessible legal procedures for dispute settlement among domestic enterprises;
(C)
privatizing industry in a fair and equitable manner that provides economic opportunities to a broad spectrum of the population, eliminating government and elite monopolies, closing loss-making enterprises, and reducing government control over the factors of production;
(D)
economic deregulation by eliminating inefficient and overly burdensome regulations and strengthening the legal framework supporting private contract and intellectual property rights;
(E)
establishing or strengthening key elements of a social safety net to cushion the effects on workers of unemployment and dislocation; and
(F)
encouraging the opening of markets for agricultural commodities and products by requiring recipient countries to make efforts to reduce trade barriers.
(3)
Vigorously promote policies to increase the effectiveness of the International Monetary Fund, in concert with appropriate international authorities and other international financial institutions (as defined in section 1701(c)(2)), in strengthening financial systems in developing countries, and encouraging the adoption of sound banking principles and practices, including the development of laws and regulations that will help to ensure that domestic financial institutions meet strong standards regarding capital reserves, regulatory oversight, and transparency.
(4)
Vigorously promote policies to increase the effectiveness of the International Monetary Fund, in concert with appropriate international authorities and other international financial institutions (as defined in section 1701(c)(2)), in facilitating the development and implementation of internationally acceptable domestic bankruptcy laws and regulations in developing countries, including the provision of technical assistance as appropriate.
(5)
Vigorously promote policies that aim at appropriate burden-sharing by the private sector so that investors and creditors bear more fully the consequences of their decisions, and accordingly advocate policies which include—
(A)
strengthening crisis prevention and early warning signals through improved and more effective surveillance of the national economic policies and financial market development of countries (including monitoring of the structure and volume of capital flows to identify problematic imbalances in the inflow of short- and medium-term investment capital, potentially destabilizing inflows of offshore lending and foreign investment, or problems with the maturity profiles of capital to provide warnings of imminent economic instability), and fuller disclosure of such information to market participants;
(B)
accelerating work on strengthening financial systems in emerging market economies so as to reduce the risk of financial crises;
(C)
consideration of provisions in debt contracts that would foster dialogue and consultation between a sovereign debtor and its private creditors, and among those creditors;
(D)
consideration of extending the scope of the International Monetary Fund's policy on lending to members in arrears and of other policies so as to foster the dialogue and consultation referred to in subparagraph (C);
(E)
intensified consideration of mechanisms to facilitate orderly workout mechanisms for countries experiencing debt or liquidity crises;
(F)
consideration of establishing ad hoc or formal linkages between the provision of official financing to countries experiencing a financial crisis and the willingness of market participants to meaningfully participate in any stabilization effort led by the International Monetary Fund;
(G)
using the International Monetary Fund to facilitate discussions between debtors and private creditors to help ensure that financial difficulties are resolved without inappropriate resort to public resources; and
(H)
the International Monetary Fund accompanying the provision of funding to countries experiencing a financial crisis resulting from imprudent borrowing with efforts to achieve a significant contribution by the private creditors, investors, and banks which had extended such credits.
(6)
Vigorously promote policies that would make the International Monetary Fund a more effective mechanism, in concert with appropriate international authorities and other international financial institutions (as defined in section 1701(c)(2)), for promoting good governance principles within recipient countries by fostering structural reforms, including procurement reform, that reduce opportunities for corruption and bribery, and drug-related money laundering.
(7)
Vigorously promote the design of International Monetary Fund programs and assistance so that governments that draw on the International Monetary Fund channel public funds away from unproductive purposes, including large “show case” projects and excessive military spending, and toward investment in human and physical capital as well as social programs to protect the neediest and promote social equity.
(8)
Work with the International Monetary Fund to foster economic prescriptions that are appropriate to the individual economic circumstances of each recipient country, recognizing that inappropriate stabilization programs may only serve to further destabilize the economy and create unnecessary economic, social, and political dislocation.
(9)
Structure International Monetary Fund programs and assistance so that the maintenance and improvement of core labor standards are routinely incorporated as an integral goal in the policy dialogue with recipient countries, so that—
(A)
recipient governments commit to affording workers the right to exercise internationally recognized core worker rights, including the right of free association and collective bargaining through unions of their own choosing;
(B)
measures designed to facilitate labor market flexibility are consistent with such core worker rights; and
(C)
the staff of the International Monetary Fund surveys the labor market policies and practices of recipient countries and recommends policy initiatives that will help to ensure the maintenance or improvement of core labor standards.
(10)
Vigorously promote International Monetary Fund programs and assistance that are structured to the maximum extent feasible to discourage practices which may promote ethnic or social strife in a recipient country.
(11)
Vigorously promote recognition by the International Monetary Fund that macroeconomic developments and policies can affect and be affected by environmental conditions and policies, and urge the International Monetary Fund to encourage member countries to pursue macroeconomic stability while promoting environmental protection.
(12)
Facilitate greater International Monetary Fund transparency, including by enhancing accessibility of the International Monetary Fund and its staff, fostering a more open release policy toward working papers, past evaluations, and other International Monetary Fund documents, seeking to publish all Letters of Intent to the International Monetary Fund and Policy Framework Papers, and establishing a more open release policy regarding Article IV consultations.
(13)
Facilitate greater International Monetary Fund accountability and enhance International Monetary Fund self-evaluation by vigorously promoting review of the effectiveness of the Office of Internal Audit and Inspection and the Executive Board's external evaluation pilot program and, if necessary, the establishment of an operations evaluation department modeled on the experience of the International Bank for Reconstruction and Development, guided by such key principles as usefulness, credibility, transparency, and independence.
(14)
Vigorously promote coordination with the International Bank for Reconstruction and Development and other international financial institutions (as defined in section 1701(c)(2)) in promoting structural reforms which facilitate the provision of credit to small businesses, including microenterprise lending, especially in the world's poorest, heavily indebted countries.
(15)
Work with the International Monetary Fund to—
(A)
foster strong global anti-money laundering (AML) and combat the financing of terrorism (CFT) regimes;
(B)
ensure that country performance under the Financial Action Task Force anti-money laundering and counterterrorist financing standards is effectively and comprehensively monitored;
(C)
ensure note is taken of AML and CFT issues in Article IV reports, International Monetary Fund programs, and other regular reviews of country progress;
(D)
ensure that effective AML and CFT regimes are considered to be indispensable elements of sound financial systems; and
(E)
emphasize the importance of sound AML and CFT regimes to global growth and development.
(b)

Coordination With Other Executive Departments.—
To the extent that it would assist in achieving the goals described in subsection (a), the Secretary of the Treasury shall pursue the goals in coordination with the Secretary of State, the Secretary of Labor, the Secretary of Commerce, the Administrator of the Environmental Protection Agency, the Administrator of the Agency for International Development, and the United States Trade Representative.
SEC. 1504.
[22 U.S.C. 262o–3]

ADMINISTRATIVE PROVISIONS.
(a)

Achievement of Certain Policy Goals.—
The Secretary of the Treasury should instruct the United States Executive Director at each multilateral development institution to inform the institution of the following United States policy goals, and use the voice and vote of the United States to achieve the goals at the institution before June 30, 2005:
(1)
No later than 60 calendar days after the Board of Directors of the institution approves the minutes of a Board meeting, the institution shall post on its website an electronic version of the minutes, with material deemed too sensitive for public distribution redacted.
(2)
The institution shall keep a written transcript or electronic recording of each meeting of its Board of Directors and preserve the transcript or recording for at least 10 years after the meeting.
(3)
All public sector loan, credit and grant documents, country assistance strategies, sector strategies, and sector policies prepared by the institution and presented for endorsement or approval by its Board of Directors, with materials deemed too sensitive for public distribution redacted or withheld, shall be made available to the public 15 calendar days before consideration by the Board or, if not then available, when the documents are distributed to the Board. Such documents shall include the resources and conditionality necessary to ensure that the borrower complies with applicable laws in carrying out the terms and conditions of such documents, strategies, or policies, including laws pertaining to the integrity and transparency of the process such as public consultation, and to public health and safety and environmental protection.
(4)
The institution shall post on its website an annual report containing statistical summaries and case studies of the fraud and corruption cases pursued by its investigations unit.
(5)
The institution shall require that any health, education, or poverty-focused loan, credit, grant, document, policy, or strategy prepared by the institution includes specific outcome and output indicators to measure results, and that the indicators and results be published periodically during the execution, and at the completion, of the project or program.
(6)
The institution shall establish a plan and schedule for conducting regular, independent audits of internal management controls and procedures for meeting operational objectives, complying with Bank policies, and preventing fraud, and making reports describing the scope and findings of such audits available to the public.
(7)
The institution shall establish effective procedures for the receipt, retention, and treatment of: (A) complaints received by the Bank regarding fraud, accounting, mismanagement, internal accounting controls, or auditing matters; and (B) the confidential, anonymous submission by employees of the Bank of concerns regarding fraud, accounting, mismanagement, internal accounting controls, or auditing matters.
(b)
Not later than September 1, 2004, and 6 months thereafter, the Secretary of the Treasury shall submit a report to the appropriate congressional committees describing the actions taken by each multilateral development institution to implement the policy goals described in subsection (a), and any further actions that need to be taken to fully implement such goals.
(c)

Publication of Written Statements Regarding Inspection Mechanism Cases.—
No later than 60 calendar days after a meeting of the Board of Directors of a multilateral development institution, the Secretary of the Treasury should provide for publication on the website of the Department of the Treasury of any written statement presented at the meeting by the United States Executive Director at the institution concerning—
(1)
a project on which a claim has been made to the inspection mechanism of the institution; or
(2)
a pending inspection mechanism case.
(d)

Congressional Briefings.—
The Secretary of the Treasury or the designee of the Secretary should brief the appropriate congressional committees, when requested, on the steps that have been taken by the United States Executive Director at any multilateral development institution, and by any such institution, to implement the measures described in this section.
(e)
Publication of “No” Votes and Abstentions by the United States.—Each month, the Secretary of the Treasury should provide for posting on the website of the Department of the Treasury of a record of all “no” votes and abstentions made by the United States Executive Director at any multilateral development institution on any matter before the Board of Directors of the institution.
(f)

Multilateral Development Institution Defined.—
In this section, the term “multilateral development institution” shall have the meaning given in section 1701(c)(3).
SEC. 1505.
[22 U.S.C. 262o–4]

PROMOTION OF POLICY GOALS.
(a)
The Secretary of the Treasury shall instruct the United States Executive Director at each multilateral development bank to inform each such bank and the executive directors of each such bank of the policy of the United States as set out in this section and to actively promote this policy and the goals set forth in section 1504 of this Act. It is the policy of the United States that each bank should—
(1)
require the bank's employees, officers and consultants to make an annual disclosure of their financial interests and income and of any other potential source of conflict of interest;
(2)
link project and program design and results to management and staff performance appraisals, salaries, and bonuses;
(3)
implement voluntary disclosure programs for firms and individuals participating in projects financed by such bank;
(4)
ensure that all loan, credit, guarantee, and grant documents and other agreements with borrowers include provisions for the financial resources and conditionality necessary to ensure that a person or country that obtains financial support from a bank complies with applicable bank policies and national and international laws in carrying out the terms and conditions of such documents and agreements, including bank policies and national and international laws pertaining to the comprehensive assessment and transparency of the activities related to access to information, public health, safety, and environmental protection;
(5)
implement clear anti-corruption procedures setting forth the circumstances under which a person will be barred from receiving a loan, contract, grant, guarantee or credit from such bank, make such procedures available to the public, and make the identity of such person available to the public;
(6)
coordinate policies across multilateral development banks on issues including debarment, cross-debarment, procurement guidelines, consultant guidelines, and fiduciary standards so that a person that is debarred by one such bank is subject to a rebuttable presumption of ineligibility to conduct business with any other such bank during the specific ineligibility period;
(7)
require each bank borrower and grantee and each bidder, supplier and contractor for MDB projects to comply with the highest standard of ethics prohibiting coercive, collusive, corrupt and fraudulent practices, such as are defined in the World Bank's Procurement Guidelines of May, 2004;
(8)
maintain a functionally independent Investigations Office, Auditor General Office and Evaluation Office that are free from interference in determining the scope of investigations (including forensic audits), internal auditing (including assessments of management controls for meeting operational objectives and complying with bank policies), performing work and communicating results, and that regularly report to such bank's board of directors and, as appropriate and in a manner consistent with such functional independence of the Investigations Office and the Auditor General Office, to the bank's President;
(9)
require that each candidate for adjustment or budget support loans demonstrate transparent budgetary and procurement processes including budget publication and public scrutiny prior to loan or grant approval;
(10)
require that for each project where compensation is to be provided to persons adversely affected by the project, such persons have recourse to an impartial and responsive mechanism to receive and resolve complaints. The mechanism should be easily accessible to all segments of the affected community without impeding access to other judicial or administrative remedies and without retribution;
(11)
implement best practices in domestic laws and international conventions against corruption for whistleblower and witness disclosures and protections against retaliation for internal and lawful public disclosures by the bank's employees and others affected by such bank's operations who challenge illegality or other misconduct that could threaten the bank's mission, including: (1) best practices for legal burdens of proof; (2) access to independent adjudicative bodies, including external arbitration based on consensus selection and shared costs; and (3) results that eliminate the effects of proven retaliation; and
(12)
require, to the maximum extent possible, that all draft country strategies are issued for public consideration no less than 45 days before the country strategy is considered by the multilateral development bank board of directors.
(b)
The Secretary of the Treasury shall, beginning thirty days after the enactment of this Act 28 and within sixty calendar days of the meeting of the respective bank's Board of Directors at which such decisions are made, publish on the Department of the Treasury website a statement or explanation of the United States position on decisions related to: (1) operational policies; and (2) any proposal which would result or be likely to result in a significant effect on the environment.
^{28}
So in law. The reference in subsection (b) to “the enactment of this Act” probably should be to “the enactment of this section”.
(c)
In this section the term “multilateral development bank” has the meaning given that term in section 1307 of the International Financial Institutions Act (22 U.S.C. 262m–7) and also includes the European Bank for Reconstruction and Development and the Global Environment Facility.
TITLE XVI—

HUMAN WELFARE
Sec. 1601.
[22 U.S.C. 262p]
(a)
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development and the International Development Association to initiate discussions with other directors of the respective institutions and to propose that—
(1)
guidelines be established which reflect clear and tangible concern for the impact adjustment lending programs, and the activities in support of which such lending is made, have and will have on human welfare; and
(2)
impact statements be required which assess the effect an adjustment lending program, and the activities in support of which such lending is made, will have on the poor of the country to which such lending is made.
(b)
In the discussions referred to in subsection (a) with respect to the impact statement described in paragraph (2) of such subsection, the United States Executive Director should propose that such impact statements—
(1)
specify what the projected effects of the adjustment loan will be on the poor;
(2)
explain what procedures have been or will be taken to strengthen the in-country capacity of the borrower to—
(A)
monitor nutrition levels in a timely manner; and
(B)
measure the impact an adjustment loan, and the policies and activities in support of which such loan is made, has on the living standards of the country's population, especially the poorest; and
(3)
indicate specifically what steps the borrower will take to—
(A)
mitigate any adverse effect the policies and activities in support of which an adjustment loan is made are expected to have on the living standards of the poor (including the use of the proceeds of any adjustment loan, project aid, or other compensatory measure to mitigate such effect); and
(B)
maximize the extent of the participation of the poor in the economic benefits resulting from an adjustment loan.
(c)
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development and the International Development Association to request the management of the respective institutions to prepare a report for distribution to member governments no later than June 30, 1988, that—
(1)
assesses the impact on the poor of structural adjustment in countries to which structural adjustment lending has been made; and
(2)
specifies the steps that have been or will be taken by the respective institution to—
(A)
mitigate any adverse effect of adjustment lending, and the activities in support of which such lending is made, on the living standards of the poor in the countries to which such loans are made; and
(B)
ensure the participation of the poor in the economic benefits resulting from adjustment lending and the activities in support of which such lending is made.
(d)
For purposes of this section and section 1302, the term “adjustment lending” means nonproject lending in support of structural macroeconomic reforms or sectoral economic reform.
Sec. 1602.
[22 U.S.C. 262p–1]
(a)
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development and the International Development Association to initiate discussions with other directors of such institutions and to propose the establishment of a Grassroots Collaboration Program to develop improved mechanisms for involving, directly or indirectly, nongovernmental organizations in the design, implementation, and monitoring of development projects financed by, or development policies established by, such bank or association in order to alleviate poverty and promote environmental protection, including—
(1)
encouraging nongovernmental organizations in borrowing countries to participate in all stages of project planning and country strategy activities to—
(A)
minimize any adverse impact of such projects or activities on the poor people of such country;
(B)
minimize any adverse impact of such projects or activities on the environment of such country; and
(C)
maximize the extent to which such projects or activities will benefit the poor people of such country;
(2)
increasing the direct involvement of nongovernmental organizations in project design, implementation, or monitoring whenever such organizations have a distinct comparative advantage over other entities in providing such services by virtue of their grassroots involvement with poor people, especially women, in a borrowing country;
(3)
providing microenterprise credit for small scale economic activities through nongovernmental organizations;
(4)
supporting the enhancement of the institutional capacity of nongovernmental organizations in borrowing countries as development practitioners; and
(5)
establishing or supporting jointly funded intermediary mechanisms with nongovernmental organizations to facilitate increased collaboration between such bank or association and nongovernmental organizations in borrowing countries.
(b)
It is the sense of the Congress that the Grassroots Collaboration Program described in subsection (a) should be implemented and financed as part of the normal operations of the International Bank for Reconstruction and Development and the International Development Association.
(c)
To the extent the activities under the Grassroots Collaboration Program described in subsection (a) need more flexible financing, it is the sense of the Congress that—
(1)
such activities could be funded through a grant from the net income of the International Bank for Reconstruction and Development; and
(2)
an initial grant of not less than $50,000,000 should be made for such activities with subsequent annual allocations of such additional amounts as may be necessary to allow the Grassroots Collaboration Program to maximize collaboration with nongovernmental organizations in the alleviation of poverty and the protection of the environment.
(d)29
* * *
[Repealed—1989]
^{29}
Sec. 541 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2518) consolidated several reporting requirements into new secs. 1701–1703 and titles XVIII and XIX of the International Financial Institutions Act and repealed duplicative requirements in other legislation. Sec. 541(d)(4) repealed subsec. (d).
(e)
Each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies shall describe the status of the establishment and operation of the Grassroots Collaboration Program described in subsection (a), the activities undertaken by the Program, and the sum of the amounts expended by the Program.
Sec. 1603.
[22 U.S.C. 262p–2]
(a)
The Secretary of the Treasury shall instruct the United States Executive Directory of the International Bank for Reconstruction and Development and the International Development Association to initiate discussions with other directors of such Bank or Association to propose that—
(1)
in carrying on the activities of the Bank or Association, the Bank or Association take such steps as may be necessary to increase access for the poor people of a borrowing country to formal sources of credit; and
(2)
the Bank or Association include a requirement in all appropriate project and nonproject agreements, as a condition for assistance under such agreements, that the borrowing country identify and remove unreasonable legal and regulatory barriers to—
(A)
the establishment or operation of organizations which extend credit; and
(B)
the provision of credit to microenterprises for small scale economic activities.
(b)
The Secretary of the Treasury shall instruct the United States Executive Directors of the African Development Bank and the Asian Development Bank to initiate discussions with other directors of the respective banks and to propose that each such bank—
(1)
examine the Program for the Financing of Small Projects of the Inter-American Development Bank and the steps taken by such bank to link the Program to the mainstream operation of the bank; and
(2)
explore ways and means to establish similar program within the respective banks to provide credit to microenterprises for small scale economic activities.
(c)
Each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies shall describe the status of the microenterprise credit promotion activities of each of the institutions referred to in subsection (a) or (b).
Sec. 1604.
[22 U.S.C. 262p–3]
(a)
Congress hereby declares that it is the policy of the United States that multilateral development banks should—
(1)
fully involve women in borrowing countries in the identification, planning, implementation, and evaluation of mainstream development activities financed by such banks;
(2)
recognize and support women's direct and indirect roles in the economic development of their countries and communities;
(3)
recognize and support women's direct and indirect roles in the education and social development of, the maintenance of the health of, and in the provision of adequate nutrition for, family members and communities, especially children;
(4)
work to remove legal and customary barriers which impede the full participation of women in economic and social development, such as lack of access to credit, property rights, education, health care, and government services; and
(5)
involve women's groups in borrowing countries in project identification and preparation in order to factor their assessments of women's economic and social needs into project design.
(b)
The Secretary of the Treasury shall instruct—
(1)
the United States Executive Director of the International Bank for Reconstruction and Development and the International Development Association to support attempts to strengthen the role of the Women in Development division in policy development, project design and implementation, and evaluation; and
(2)
the United States Executive Directors of the regional and multilateral development banks to support exploring the establishment of a mechanism, or the strengthening of any existing mechanism, within each of the respective banks, to advise, advocate, and promote the full integration of women in the planning, design, implementation, and evaluation of lending activities both in borrowing countries and within the banks.
(c)
Each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies shall describe the actions taken by the multilateral development banks to implement the policies established under this section.
Sec. 1605.
[22 U.S.C. 262p–4]
The Secretary of the Treasury shall instruct the United States Executive Director of each multilateral development bank to initiate discussions with other executive directors of the respective bank and to propose that the bank take such steps as may be necessary—
(1)
to determine, at the time an initial feasibility study is conducted with respect to a proposed project and to the fullest extent possible, the impact such project would have on indigenous people in the borrowing country;
(2)
to ensure compliance with loan conditionalities relating to the protection of the rights of indigenous people to lands and resources; and
(3)
to consult with indigenous people, and nongovernmental organizations representing indigenous people, at every phase of loan design, planning, implementation, and monitoring.
SEC. 1606.30
[22 U.S.C. 262p–4a]

LOAN PROGRAMS TO REDUCE ECONOMIC DEPENDENCE ON ILLICIT NARCOTICS.
(a)

Findings.—
The Congress finds that—
^{30}
Sec. 1606 was added by sec. 6 of H.R. 4645 as enacted into law by sec. 555 of Public Law 100–461 (102 Stat. 2268). The sec. 1606 previously appearing at this point was redesignated as sec. 1612.
(1)
the illicit narcotics epidemic currently afflicting the United States represents a direct threat to the well-being of every United States citizen;
(2)
every effective means must be pursued to reduce the foreign production and subsequent importation into the United States of illicit narcotics;
(3)
the multilateral development banks can play an integral role in efforts to control the production of illicit narcotics;
(4)
producer country narcotics eradication programs will not be effective unless such programs provide an economic alternative to the production of narcotics;
(5)
efforts to address the illicit narcotics epidemic through production control are doomed to failure unless greater effort is applied to curb use of and demand for illicit narcotics; and
(6)
the appropriate role for the multilateral development banks in the “War Against Drugs” is through coordinating and financing alternative economic opportunities in producer and trafficking countries.
(b)

Loan Programs to Reduce Economic Dependence on Illicit Narcotics.—
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development and the United States Executive Director of the Inter-American Development Bank to initiate discussion with other executive directors of such institutions and to advocate and support the creation, within such institutions, of specific country lending programs and policies (including crop substitution, creation of roads conducive to the expansion of markets for licit goods, other infrastructure development measures such as development projects generating employment, agricultural extension assistance, and region-specific development plans) which are particularly oriented to reducing or eliminating the economic dependence of regions of borrowing countries known to be areas in which illicit narcotics are produced or trafficked, on such production and trafficking.
(c)

Coordination Among Assistance Programs Designed To Reduce Economic Dependency on Illicit Narcotics.—
In addition, the Secretary of the Treasury should instruct the United States Executive Director of the International Bank for Reconstruction and Development and the United States Executive Director of the Inter-American Development Bank to encourage such institutions to provide coordination among other multilateral and bilateral assistance programs designed to reduce the economic dependence of regions of borrowing countries known to be areas in which illicit narcotics are produced or trafficked, on such production and trafficking.
SEC. 1607.31
[22 U.S.C. 262p–4b]

DIRECTIVES REGARDING GOVERNMENT-OWNED ENTERPRISES IN COUNTRIES RECEIVING WORLD BANK LOANS.
(a)

Finding.—
The Congress finds that a principal focus of United States Government policy in the multilateral development banks has been and should be to foster greater development of the private sector in member borrowing countries of such banks.
^{31}
Sec. 1607 was added by sec. 7 of H.R. 4645 as enacted into law by sec. 555 of Public Law 100–461 (102 Stat. 2268).
(b)

Technical Assistance To Transform Government-Owned Enterprises Into Privately Owned Enterprises.—
In order to assist and strengthen the advancement of ongoing efforts to have the International Bank for Reconstruction and Development play a key role in building a viable private sector in member borrowing countries of such bank, and to further assist such bank in its determination to facilitate the transfer of government-owned enterprises in such countries to private ownership, the Secretary of the Treasury shall instruct the United States Executive Director of such bank to vigorously encourage the provision of technical assistance to such countries (relying, where appropriate, on the expertise of the International Finance Corporation or the Multilateral Investment Guarantee Agency) to transform enterprises owned, in whole or part, by the governments of such countries into privately owned, self-sufficient enterprises. Such technical assistance may involve the valuation of the assets of such government-owned enterprises, the assessment of tender offers, and the creation or strengthening of market-based mechanisms to facilitate such a transfer of ownership.
(c)

Reports.—
(1)

In general.—
The United States Executive Director of the International Bank for Reconstruction and Development shall submit 3 reports to the Congress on—
(A)
the progress made in transforming government owned enterprises into privately owned enterprises as described in subsection (b);
(B)
the performance of the privately owned enterprises resulting from such transformation; and
(C)
the contributions of development finance companies toward strengthening the private sector in member borrowing countries.
(2)

Timing.—
The United States Executive Director of the International bank for Reconstruction and Development shall submit to the Congress the first report required by paragraph (2) within 1 year after the date of the enactment of this section, and shall submit additional reports 12 months, and 24 months, after the date the first report is submitted.
SEC. 1608.32
[22 U.S.C. 262p–4c]

INITIATION OF DISCUSSIONS TO FACILITATE DEBT-FOR-DEVELOPMENT SWAPS FOR HUMAN WELFARE AND ENVIRONMENTAL CONSERVATION.
(a)

Findings.—
The Congress finds that—
^{32}
Sec. 1608 was added by sec. 8 of H.R. 4645 as enacted into law by sec. 555 of Public Law 100–461 (102 Stat. 2268).
(1)
voluntary debt-for-development swaps in heavily indebted developing nations can simultaneously facilitate reduction of the burden of external indebtedness and increase the resources available within the country for charitable, educational, and scientific purposes, including environmental conservation, educational, and scientific purposes, including environmental conservation, education, human welfare, health, agricultural research and development, microenterprise credit, and development of indigenous nonprofit organizations; and
(2)
heavily indebted developing countries may desire to facilitate such swaps to the maximum extent consistent with sound domestic economic management and minimization of inflationary impact.
(b)

Initiation of Discussions To Facilitate Debt-For-Development Swaps for Human Welfare and Environmental Conservation.—
(1)

In general.—
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to initiate discussions with the directors of such bank, the International Development Association, and the International Finance Corporation and propose that such institutions provide advice and assistance, as appropriate, to borrowing country governments desiring to facilitate debt-for-development swaps, on mechanisms (including trust funds) to accomplish this purpose, particularly in the context of debt rescheduling, which mechanisms result in sound management of the macroeconomic impact of such swaps on such countries, and preserve the value of the capital obtained through such swaps.
(2)

Definitions.—
As used in this section:
(A)

Debt-for-development swap.—
The term “debt-for-development swap” means the purchase of qualified debt by, or the donation of such debt to, an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 which is exempt from taxation under section 501(a) of such Code, and the subsequent transfer of such debt to an organization located in such foreign country in exchange for an undertaking by such tax-exempt organization, such foreign government, or such foreign organization to engage in a charitable, educational, or scientific activity.
(B)

Qualified debt.—
The term “qualified debt” means—
(i)
sovereign debt issued by a foreign government;
(ii)
debt owed by private institutions in the country governed by such foreign government; and
(iii)
debt owed by institutions in the country governed by such foreign government, which are owned, in part, by private persons and, in part, by public institutions.
SEC. 1609.33
[22 U.S.C. 262p–4d]

INITIATION OF DISCUSSIONS TO FACILITATE FINANCING OF HUMAN WELFARE AND NATURAL RESOURCE PROGRAMS IN SUB-SAHARAN AFRICA IN CONNECTION WITH DEBT REDUCTION AND CONVERSION.
(a)

Finding.—
The Congress finds that—
^{33}
Sec. 1609 was added by sec. 9 of H.R. 4645 as passed by the House on September 28, 1988, and enacted into law by sec. 555 of Public Law 100–461 (102 Stat. 2268).
(1)
the heavy burden of debt borne by sub-Saharan governments undermines efforts by such governments to finance projects and programs designed to promote charitable, educational, and scientific purposes, including education, human welfare, health, agricultural research and development, and conservation, restoration and enhancement of the natural resource base; and
(2)
the financing of programs to promote such charitable, educational, and scientific purposes should be facilitated in the context of reducing and converting sovereign debt of sub-Saharan governments, as encouraged in the final communique of the June 1988 economic summit conference in Toronto, Canada, through such means as—
(A)
concessional interest rates;
(B)
extended repayment periods; or
(C)
partial or complete write-offs of debt service obligations.
(b)

Initiation of Discussions To Facilitate Financing of Human Welfare and Natural Resource Programs in Sub-Saharan Africa in Connection With Debt Reduction and Conversion.—
The Secretary of the Treasury shall instruct the United States Executive Director of the African Development Bank and the African Development Fund to initiate discussions with the directors of such institutions and propose that such institutions, jointly with the International Bank for Reconstruction and Development, International Development Association, and the International Finance Corporation, as appropriate, provide advice and assistance to government creditors holding sovereign debt of any sub-Saharan government, and to sub-Saharan governments which desire to finance programs with local currencies obtained through debt reduction and conversion to promote charitable, educational, and scientific (including conservation and restoration of natural resources) purposes, as a condition of reducing or converting such sovereign debt.
SEC. 1610.34
[22 U.S.C. 262p–4e]

EXTENT TO WHICH BORROWING COUNTRY GOVERNMENTS HAVE HONORED DEBT-FOR-DEVELOPMENT SWAP AGREEMENTS TO BE CONSIDERED AS FACTOR IN MAKING LOANS TO SUCH BORROWERS.
(a)

In General.—
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to initiate discussions with the directors of such bank and propose that such bank consider, as an important factor in making loans to borrowing country governments, the history of compliance by such governments with, and the extent to which such governments have honored, agreements entered into by such governments as part of any debt-for-development swap which requires such governments to set aside or otherwise limit the use of real property to conservation purposes.
^{34}
Sec. 1610 was added by sec. 10 of H.R. 4645 as passed by the House on September 28, 1988, and enacted into law by sec. 555 of Public Law 100–461 (102 Stat. 2268).
(b)

Definitions.—
As used in this section:
(1)

Debt-for-development swap.—
The term “debt-for-development swap” means the purchase of qualified debt by, or the donation of such debt to, an organization described in section 501(c)(3) of the Internal Revenue code of 1986 which is exempt from taxation under section 501(a) of such Code, and the subsequent transfer of such debt to an organization located in such foreign country in exchange for an undertaking by such tax-exempt organization, such foreign government, or such foreign organization to engage in a charitable, educational, or scientific activity.
(2)

Qualified debt.—
The term “qualified debt” means—
(A)
sovereign debt issued by a foreign government;
(B)
debt owed by private institutions in the country governed by such foreign government; and
(C)
debt owed by institutions in the country governed by such foreign government which are owned, in part, by private persons and, in part, by public institutions.
SEC. 1611.35
[22 U.S.C. 262p–4f]

ASSISTANCE TO COUNTRIES TO DEVELOP STATISTICAL ASSESSMENT OF THE WELL-BEING OF THE POOR.
(a)

Finding.—
The Congress finds that—
^{35}
Sec. 1611 was added by sec. 11 of H.R. 4645 as passed by the House on September 28, 1988, and enacted into law by sec. 555 of Public Law 100–461 (102 Stat. 2268).
(1)
improvements in the capacity of developing countries to measure and monitor regularly the nutritional and physical well-being of the poorest 40 percent of the population of each of such countries is essential to the development of policies to reduce absolute poverty;
(2)
internationally accepted statistical indicators that measure reliably the extent of absolute poverty and identify the location and characteristics of the poor are being developed and refined to guide policy formulation and target assistance to the poor;
(3)
such guidance by indicators is, however, not able to be used in some developing countries, especially the poorest countries, due to the woeful unavailability of statistical data;
(4)
the International Bank for Reconstruction and Development and the International Development Association have the technical and financial capability to assist borrowing country governments to develop such statistical measurement capabilities for social indicators necessary for the design and monitoring of poverty-reduction policies for such governments;
(5)
availability of social indicator data is also essential to the work of such institutions, particularly in monitoring the impact of structural adjustment lending on the poor; and
(6)
availability of such indicators will also facilitate the measurement of progress in the alleviation of poverty by other donor agencies, public and private.
(b)

Assistance to Countries To Develop Statistical Assessment of the Well-Being of the Poor.—
The Secretary of the treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development and the International Development Association to advocate and support, as an immediate priority, assistance by such institutions to borrowing country governments to develop appropriate statistical measures for assessing the physical well-being of the poor, by sex and age, by using such indicators as mortality, health, education, and nutrition, as well as wealth and income, and maintain and publish such indicators on an ongoing basis.
SEC. 1612.36
[22 U.S.C. 262p–4g]

DIRECTIVES REGARDING GOVERNMENT-OWNED ENTERPRISES IN COUNTRIES RECEIVING IADB LOANS.
(a)

Finding.—
The Congress finds that a principal focus of United States Government policy in the multilateral development banks has been and should be to foster greater development of the private sector in member borrowing countries of such banks.
^{36}
Sec. 206 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2499), redesignated sec. 1612 as 1613, and added a new sec. 1612.
(b)

Technical Assistance To Transform Government-Owned Enterprises Into Privately Owned Enterprises.—
In order to assist and strengthen the advancement of ongoing efforts to have the Inter-American Development Bank play a key role in building a viable private sector in member borrowing countries of such bank, and to further assist such bank in its determination to facilitate the transfer of government-owned enterprises in such countries to private ownership, the Secretary of the Treasury shall instruct the United States Executive Director of such bank to vigorously encourage the provision of technical assistance to such countries to transform enterprises owned, in whole or in part, by the governments of such countries into privately owned, self-sufficient enterprises. Such technical assistance may involve the valuation of the assets of such government-owned enterprises, the assessment of tender offers, and the creation or strengthening of market-based mechanisms to facilitate such a transfer of ownership.
SEC. 1613.37
[22 U.S.C. 262p–4h]

DISCUSSIONS TO INCREASE THE PRODUCTIVE ECONOMIC PARTICIPATION OF THE POOR; REPORTS.
(a)

In General.—
The Secretary of the Treasury shall instruct the United States Executive Director for each multilateral development bank to vigorously and continually advocate, in all replenishment negotiations and in discussion with other directors of such bank and with such bank, the following:
^{37}
Sec. 501 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2505) added a new sec. 1613.
(1)
A major objective of such bank's operations and financing in each borrowing country, as a long term priority, should be to increase the productive role of the poor in the economy of such country.
(2)
Such bank should encourage and assist each borrowing country to develop sustainable national plans and strategies to eliminate the causes and alleviate the manifestations of poverty which keep the poor from leading economically and socially productive lives. Such plans and strategies should give attention to—
(A)
the enhancement of human resources, including programs for basic nutrition, primary health services, basic education, and safe water and basic sanitation;
(B)
access to income-generating activities, employment, and productive assets such as land and credit; and
(C)
consultation with public sector social agencies and local non-governmental organizations.
(3)
As an integral element of ongoing policy dialogue with each borrowing country to design structural adjustment plans and project lending programs, such bank should provide assistance consistent with achieving the objectives of the country's national plan for increasing the productive economic participation of the poor. Such dialogue should be conducted with government agencies working in social and economic sectors and with non-governmental groups in the borrowing country, especially those that have grassroots involvement with poor people.
(4)
In an annual review document, such bank should describe the extent to which the goal of increasing the productive economic participation of the poor is being advanced or retarded and the steps that are being taken to overcome obstacles to its fulfillment. Such review should be based on information contained in the bank's country implementation review documents and in the country strategy documents for each borrowing country. Such country strategy documents should describe the national strategy for productive economic participation of the poor and the steps the bank plans to take to assist the borrowing country during the period covered by the country strategy document.
(5)
Such bank should assist countries in assessing and monitoring progress in achieving poverty alleviation goals and targets through measurement by appropriate social indicators.
(6)
Such bank should adopt procedures and budgetary allocations for administrative purposes, and establish appropriate staffing levels, to ensure that adequate resources are available to implement the bank's program for enhancing the productive economic participation of the poor, in consultation with non-governmental groups.
(7)
Such bank should adopt, as a separate and major criterion in the allocation of concessional financing resources, a preferential allocation to each country which undertakes significant efforts to enhance the productive economic participation of the poor.
(8)
Such bank should require each country which receives structural adjustment assistance to have in place, after a reasonable phase-in period, a strategy to enhance the productive economic participation of the poor.
(b)

Progress Report.—
Before the end of the 1–year period beginning on the date of the enactment of this section, the Secretary of the Treasury shall submit to the Committee on Banking, Finance and Urban Affairs 38 and the Committee on Appropriations of the House of Representatives, and the Committee on Foreign Relations and the Committee on Appropriations of the Senate, a report on the following:
^{38}
Sec. 1(a)(2) of Public Law 104–14 (109 Stat. 186) provided that references to the Committee on Banking, Finance and Urban Affairs of the House of Representatives shall be treated as referring to the Committee on Banking and Financial Services of the House of Representatives.
(1)
The status of advocacy and progress being made to implement the objectives of subsection (a), describing the success to date, the obstacles encountered, and future expectations of progress.
(2)
A description of the progress to date in achieving the purposes of section 1611, including the institutional capacity and effort devoted to assisting in the development of statistical measures to assess the well-being of the poor.
(3)
A description and evaluation of the progress to date in developing effective mechanisms for involving non-governmental organizations, directly or indirectly, in the design, implementation, and monitoring of development projects, programs, and policies of the multilateral development banks.
SEC. 1614.39
[22 U.S.C. 262p–4i]

MULTILATERAL DEVELOPMENT BANKS AND DEBT-FOR-NATURE EXCHANGES.
(a)

Directions to the United States Executive Directors.—
The Secretary of the Treasury shall direct the United States Executive Directors of the multilateral development banks to—
^{39}
Sec. 512 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2508) added new secs. 1614 through 1616.
(1)
negotiate for the creation in each respective multilateral development bank, except where the Secretary of the Treasury determines that the provisions of this subsection have previously been met, of a department that will—
(A)
be responsible for environmental protection and resource conservation, including support for restoration, protection, and sustainable use policies;
(B)
develop and monitor strict environmental guidelines and policies to govern lending activities; and
(C)
actively promote, coordinate and facilitate debt-for-nature exchanges and the restoration, protection, and sustainable use of tropical forests, renewable natural resources, endangered ecosystems and species in debtor countries;
(2)
support and encourage the approval of multilateral development bank loans which include provisions that foster and facilitate the implementation of a sound and effective environmental policy in the borrowing country;
(3)
encourage the banks to assist such countries in reducing and restructuring private debt through the use of a portion of a project or policy based environmental loan in ways which will enable such countries to buy back private debt at a rate of discount available for such debt, at auction in the secondary market or through negotiations with creditors holding such debt;
(4)
seek to ensure that staff of each bank facilitate debtor countries' collaboration with local and international non-governmental or private organizations in implementing debt-for-nature exchanges; and
(5)
seek to ensure that each bank adopts policy guidelines which to the maximum extent possible provide for—
(A)
the inclusion of sustainable use policies in loan agreements negotiated with borrower members;
(B)
the adoption of economic programs to foster sound environmental policies; and
(C)
the provision of debtor countries' policy changes or significant increases in financial resources for use in at least 1 of the following—
(i)
restoration, protection, or sustainable use of the world's oceans and atmosphere;
(ii)
restoration, protection, or sustainable use of diverse animal and plant species;
(iii)
establishment, restoration, protection, and maintenance of parks and reserves;
(iv)
development and implementation of sound systems of natural resource management;
(v)
development and support of local conservation programs;
(vi)
training programs to strengthen conservation institutions and increase scientific, technical, and managerial capabilities of individuals and organizations involved in conservation efforts;
(vii)
efforts to generate knowledge, increase understanding, and enhance public commitment to conservation;
(viii)
design and implementation of sound programs of land and ecosystem management; and
(ix)
promotion of regenerative approaches in farming, forestry, and watershed management.
(b)

Negotiation of Guidelines for Restoration, Protection, or Sustainable Use Policies.—
The United States Executive Directors of the multilateral development banks shall seek to negotiate with the other executive directors to provide guidelines for restoration, protection, or sustainable use policies. Pending the outcome of such negotiations, the United States Executive Directors shall consider restoration, protection, or sustainable use policies to be those which—
(1)
support development that maintains and restores the renewable natural resource base so that present and future needs of debtor countries' populations can be met, while not impairing critical ecosystems and not exacerbating global environmental problems;
(2)
are environmentally sustainable in that resources are conserved and managed in an effort to remove pressure on the natural resource base and to make judicious use of the land so as to sustain growth and the availability of all natural resources;
(3)
support development that does not exceed the limits imposed by local hydrological cycles, soil, climate, vegetation, and human cultural practices;
(4)
promote the maintenance and restoration of soils, vegetation, hydrological cycles, wildlife, critical ecosystems (tropical forests, wetlands, and coastal marine resources), biological diversity and other natural resources essential to economic growth and human well-being and shall, when using natural resources, be implemented to minimize the depletion of such natural resources; and
(5)
take steps, wherever feasible, to prevent pollution that threatens human health and important biotic systems and to achieve patterns of energy consumption that meet human needs and relies on renewable resources.
(c)

Inclusion of Certain Items in Guidelines.—
The United States Executive Directors shall endeavor to include the provisions of paragraphs (1) through (5) of subsection (b) in the guidelines developed through the negotiations specified in this section.
SEC. 1615.40
[22 U.S.C. 262p–4j]

PROMOTION OF LENDING FOR THE ENVIRONMENT.
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to initiate discussions with the other executive directors of such bank and the management of such bank and propose that, in order to reduce the future need for bank lending for reforestation and restoration of environmentally degraded areas, the bank establish a project and policy based environmental lending program (including a loan a portion of which could be used to reduce and restructure private debt), to be made available to interested countries with a demonstrated commitment to natural resource conservation, which would be based on—
^{40}
Added by sec. 512 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2508).
(1)
the estimated long-term economic return which could be expected from the sustainable use and protection of tropical forests, including the value of tropical forests for indigenous people and for science;
(2)
the value derived from such services as—
(A)
watershed management;
(B)
soil erosion control;
(C)
the maintenance and improvement of—
(i)
fisheries;
(ii)
water supply regulation for industrial development;
(iii)
food;
(iv)
fuel;
(v)
fodder; and
(vi)
building materials for local communities;
(D)
the extraction of naturally occurring products from locally controlled protected areas; and
(E)
indigenous knowledge of the management and use of natural resources; and
(3)
the long-term benefits expected to be derived from maintaining biological diversity and climate stabilization.
SEC. 1616.41
[22 U.S.C. 262p–4k]

PROMOTION OF INSTITUTION-BUILDING FOR NONGOVERNMENTAL ORGANIZATIONS CONCERNED WITH THE ENVIRONMENT.
The Secretary of the Treasury shall instruct the United States Executive Directors of the multilateral development banks to vigorously promote the adoption of policies and procedures which seek to—
^{41}
Added by sec. 512 of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2510).
(1)
increase collaboration with, and, where necessary, strengthen, nongovernmental organizations in such countries which are concerned with environmental protection by providing appropriate assistance and support for programs and activities on environmental protection; and
(2)
encourage international collaboration for information exchange and project enhancement with nongovernmental organizations in developing countries which are concerned with environmental protection and government agencies and private voluntary organizations in developed countries which are concerned with environmental protection.
SEC. 1617.42
[22 U.S.C. 262p–4l]

IMPROVEMENT OF INTERACTION BETWEEN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND NONGOVERNMENTAL ORGANIZATIONS.
(a)

In General.—
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to propose, and urge the Executive Board and the management of the bank to develop and implement specific mechanisms designed to—
^{42}
Added by sec. 562(a)(2) of Public Law 101–513 (104 Stat. 2032). Former sec. 1617 redesignated as sec. 1620 (subsequently redesignated as sec. 1622).
(1)
substantially improve the ability of the staff of the bank to interact with nongovernmental organizations and other local groups that are affected by loans made by the bank to borrower countries; and
(2)
delegate to the field offices of the bank in borrowing countries greater responsibility for decisions with respect to proposals for projects in such countries that are to be financed by the bank.
(b)

Certain Mechanisms Urged.—
The mechanisms described in subsection (a) shall include, at a minimum, the following measures:
(1)
An instruction to the management of the bank to undertake efforts to appropriately train and significantly increase the number of bank professional staff (based in Washington, District of Columbia, as of the date of the enactment of this section) assigned, on a rotating basis, to field offices of the bank in borrower countries.
(2)
The assignment to at least 1 professional in each field office of the bank in a borrower country of responsibility for relations with local nongovernmental organizations, and for the preparation and submission to appropriate staff of the bank of a report on the impact of project loans to be made by the bank to the country, based on views solicited from local people who will be affected by such loans, which shall be included as part of the project appraisal report.
(3)
The establishment of the Grassroots Collaboration Program described in section 1602(a).
(4)
Before a project loan is made to a borrower country, the country is to be required to hold open hearings on the proposed project during project identification and project preparation.
(5)
The establishment of assessment procedures which allow affected parties and nongovernmental organizations to review information describing a prospective project or policy loan design, in a timely manner, before the loan is submitted to the Executive Board for approval.
SEC. 1618.43
[22 U.S.C. 262p–4m]

POPULATION, HEALTH, AND NUTRITION PROGRAMS.
The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and Development to urge the bank to support an increase in the amount the bank lends annually to support population, health, and nutrition programs of the borrower countries.
^{43}
Added by sec. 562(a)(2) of Public Law 101–513 (104 Stat. 2032).
SEC. 1619.44
[22 U.S.C. 262p–4n]

EQUAL EMPLOYMENT OPPORTUNITIES.
The Secretary of the Treasury shall instruct the United States Executive Directors of the multilateral development banks and of the International Monetary Fund to use the voices and votes of the Executive Directors to urge their respective banks and the Fund to adopt a policy which provides, and implement procedures which ensure, that such banks and the Fund, and the affiliates of such banks and of the Fund, shall not discriminate against any person on the basis of race, ethnicity, gender, color, or religious affiliation in any determination related to employment.
^{44}
Added by sec. 562(b)(1) of Public Law 101–513 (104 Stat. 2032).
SEC. 1620.45
[22 U.S.C. 262p–4o]

RESPECT FOR INDIGENOUS PEOPLES.
The Secretary of the Treasury shall direct the United States Executive Directors of the international financial institutions (as defined in section 1701(c)(2)) and the United States representative to the council of the Global Environment Facility administered by the International Bank for Reconstruction and Development to use the voice and vote of the United States to bring about the creation and full implementation of policies designed to promote respect for and full protection of the territorial rights, traditional economies, cultural integrity, traditional knowledge and human rights of indigenous peoples.
^{45}
Added by sec. 526(e) of Public Law 103–306 (108 Stat. 1633).
SEC. 1621.46
[22 U.S.C. 262p–4p]

ENCOURAGEMENT OF FAIR LABOR PRACTICES.
(a)
The Secretary of the Treasury shall direct the United States Executive Directors of the international financial institutions (as defined in section 1701(c)(2)) to use the voice and vote of the United States to urge the respective institution—
^{46}
Added by sec. 526(e) of Public Law 103–306 (108 Stat. 1633).
(1)
to adopt policies to encourage borrowing countries to guarantee internationally recognized worker rights (within the meaning of section 507(4)47 of the Trade Act of 1974) and to include the status of such rights as an integral part of the institution's policy dialogue with each borrowing country;
^{47}
Sec. 1954(b)(4) of Public Law 104–188 (110 Stat. 1928) struck out “502(a)(4)” and inserted in lieu thereof “507(4)”.
(2)
in developing the policies referred to in paragraph (1), to use the relevant conventions of the International Labor Organization, which have set forth, among other things, the right of association, the right to organize and bargain collectively, a prohibition on the use of any form of forced or compulsory labor, and certain minimum labor standards that take into account differences in development levels among nations including a minimum age for the employment of children, acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health; and
(3)
to establish formal procedures to screen projects and programs funded by the institution for any negative impact in a borrowing country on the rights referred to in paragraph (1).
(b)
The Secretary of the Treasury shall submit to the Committee on Banking, Finance and Urban Affairs 48 of the House of Representatives and the Committee on Foreign Relations of the Senate by the end of each fiscal year a report on the extent to which each borrowing country guarantees internationally recognized worker rights to its labor force and on progress toward achieving each of the goals described in subsection (a).
^{48}
Sec. 1(a)(2) of Public Law 104–14 (109 Stat. 186) provided that references to the Committee on Banking, Finance and Urban Affairs of the House of Representatives shall be treated as referring to the Committee on Banking and Financial Services of the House of Representatives.
SEC. 1621.49
[22 U.S.C. 262p–4q]

OPPOSITION TO ASSISTANCE BY INTERNATIONAL FINANCIAL INSTITUTIONS TO TERRORIST STATES.
(a)

In General.—
The Secretary of the Treasury shall instruct the United States executive director of each international financial institution to use the voice and vote of the United States to oppose any loan or other use of the funds of the respective institution to or for a country for which the Secretary of State has made a determination under section 6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)) or section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371).
^{49}
Added by sec. 327 of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104–132; 110 Stat. 1257), resulting in two “Sec. 1621”.
Similar language had previously been adopted in annual foreign assistance appropriations acts since FY 1988.
(b)

Definition.—
For purposes of this section, the term “international financial institution” includes—
(1)
the International Bank for Reconstruction and Development, the International Development Association, and the International Monetary Fund;
(2)
wherever applicable, the Inter-American Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the African Development Bank, and the African Development Fund; and
(3)
any similar institution established after the date of enactment of this section.
Sec. 1622.50
[22 U.S.C. 262p–5]
For purposes of this title and titles XIV and XV—
^{50}
Sec. 1622, originally added as sec. 1606 by Public Law 100–202 (101 Stat. 1329 at 1329–134), was redesignated as sec. 1612 by sec. 6 of H.R. 4645 as enacted into law by Public Law 100–461 (102 Stat. 2268). This section was redesignated as sec. 1613 by sec. 206 of Public Law 101–240 (103 Stat. 2499), further redesignated as sec. 1614 by sec. 501 of that Act, and further redesignated as sec. 1617 by that Act. Sec. 562(a)(2) of Public Law 101–513 (104 Stat. 2032) redesignated as sec. 1619 and added new secs. 1617 and 1618. This section was further redesignated as sec. 1620 by sec. 562(b)(1) of Public Law 101–513 (104 Stat. 2033), which added a new sec. 1619. The section was further redesignated as sec. 1622 by sec. 526(e) of Public Law 103–306 (108 Stat. 1633), which added new secs. 1620 and 1621.
(1)
the term “multilateral development bank” means the International Bank for Reconstruction and Development, the International Development Association, and the regional multilateral development banks; and
(2)
the term “regional multilateral development bank” means the Inter-American Development Bank, the African Development Bank, the African Development Fund, and the Asian Development Bank.
SEC. 1623.
[22 U.S.C. 262p–6]

IMPROVEMENT OF THE HEAVILY INDEBTED POOR COUNTRIES INITIATIVE.
(a)

Improvement of the HIPC Initiative.—
In order to accelerate multilateral debt relief and promote human and economic development and poverty alleviation in heavily indebted poor countries, the Congress urges the President to commence immediately efforts, with the Paris Club of Official Creditors, as well as the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (World Bank), and other appropriate multilateral development institutions to accomplish the following modifications to the Heavily Indebted Poor Countries Initiative:
(1)

Focus on poverty reduction, good governance, transparency, and participation of citizens.—
A country which is otherwise eligible to receive cancellation of debt under the modified Heavily Indebted Poor Countries Initiative may receive such cancellation only if the country has committed, in connection with social and economic reform programs that are jointly developed, financed, and administered by the World Bank and the IMF—
(A)
to enable, facilitate, or encourage the implementation of policy changes and institutional reforms under economic reform programs, in a manner that ensures that such policy changes and institutional reforms are designed and adopted through transparent and participatory processes;
(B)
to adopt an integrated development strategy to support poverty reduction through economic growth, that includes monitorable poverty reduction goals;
(C)
to take steps so that the financial benefits of debt relief are applied to programs to combat poverty (in particular through concrete measures to improve economic infrastructure, basic services in education, nutrition, and health, particularly treatment and prevention of the leading causes of mortality) and to redress environmental degradation;
(D)
to take steps to strengthen and expand the private sector, encourage increased trade and investment, support the development of free markets, and promote broad-scale economic growth;
(E)
to implement transparent policy making and budget procedures, good governance, and effective anticorruption measures;
(F)
to broaden public participation and popular understanding of the principles and goals of poverty reduction, particularly through economic growth, and good governance; and
(G)
to promote the participation of citizens and nongovernmental organizations in the economic policy choices of the government.
(2)

Faster debt relief.—
The Secretary of the Treasury should urge the IMF and the World Bank to complete a debt sustainability analysis by December 31, 2000, and determine eligibility for debt relief, for as many of the countries under the modified Heavily Indebted Poor Countries Initiative as possible.
(b)

Heavily Indebted Poor Countries Review.—
The Secretary of the Treasury, after consulting with the Committees on Banking and Financial Services and International Relations of the House of Representatives, and the Committees on Foreign Relations and Banking, Housing, and Urban Affairs of the Senate, shall make every effort (including instructing the United States Directors at the IMF and World Bank) to ensure that an external assessment of the modified Heavily Indebted Poor Countries Initiative, including the reformed Enhanced Structural Adjustment Facility program as it relates to that Initiative, takes place by December 31, 2001, incorporating the views of debtor governments and civil society, and that such assessment be made public.
(c)

Definition.—
The term “modified Heavily Indebted Poor Countries Initiative” means the multilateral debt initiative presented in the Report of G–7 Finance Ministers on the Köln Debt Initiative to the Köln Economic Summit, Cologne, Germany, held from June 18–20, 1999.
SEC. 1624.
[22 U.S.C. 262p–7]

REFORM OF THE ENHANCED STRUCTURAL ADJUSTMENT FACILITY.
The Secretary of the Treasury shall instruct the United States Executive Directors at the International Bank for Reconstruction and Development (World Bank) and the International Monetary Fund (IMF) to use the voice and vote of the United States to promote the establishment of poverty reduction strategy policies and procedures at the World Bank and the IMF that support countries' efforts under programs developed and jointly administered by the World Bank and the IMF that have the following components:
(1)
The development of country-specific poverty reduction strategies (Poverty Reduction Strategies) under the leadership of such countries that—
(A)
will be set out in poverty reduction strategy papers (PRSPs) that provide the basis for the lending operations of the International Development Association (IDA) and the reformed Enhanced Structural Adjustment Facility (ESAF);
(B)
will reflect the World Bank's role in poverty reduction and the IMF's role in macroeconomic issues;
(C)
will make the IMF's and the World Bank's advice and operations fully consistent with the objectives of poverty reduction through broad-based economic growth; and
(D)
should include—
(i)
implementation of transparent budgetary procedures and mechanisms to help ensure that the financial benefits of debt relief under the modified Heavily Indebted Poor Countries Initiative (as defined in section 1623) are applied to programs that combat poverty; and
(ii)
monitorable indicators of progress in poverty reduction.
(2)
The adoption of procedures for periodic comprehensive reviews of reformed ESAF and IDA programs to help ensure progress toward longer-term poverty goals outlined in the Poverty Reduction Strategies and to allow adjustments in such programs.
(3)
The publication of the PRSPs prior to Executive Board review of related programs under IDA and the reformed ESAF.
(4)
The establishment of a standing evaluation unit at the IMF, similar to the Operations Evaluation Department of the World Bank, that would report directly to the Executive Board of the IMF and that would undertake periodic reviews of IMF operations, including the operations of the reformed ESAF, including—
(A)
assessments of experience under the reformed ESAF programs in the areas of poverty reduction, economic growth, and access to basic social services;
(B)
assessments of the extent and quality of participation in program design by citizens;
(C)
verifications that reformed ESAF programs are designed in a manner consistent with the Poverty Reduction Strategies; and
(D)
prompt release to the public of all reviews by the standing evaluation unit.
(5)
The promotion of clearer conditionality in IDA and reformed ESAF programs that focuses on reforms most likely to support poverty reduction through broad-based economic growth.
(6)
The adoption by the IMF of policies aimed at reforming ESAF so that reformed ESAF programs are consistent with the Poverty Reduction Strategies.
(7)
The adoption by the World Bank of policies to help ensure that its lending operations in countries eligible for debt relief under the modified Heavily Indebted Poor Countries Initiative are consistent with the Poverty Reduction Strategies.
(8)
Strengthening the linkage between borrower country performance and lending operations by IDA and the reformed ESAF on the basis of clear and monitorable indictors.
(9)
Full public disclosure of the proposed objectives and financial organization of the successor to the ESAF at least 90 days before any decision by the Executive Board of the IMF to consider its adoption.
SEC. 1625.
[22 U.S.C. 262p–8]

MODIFICATION OF THE ENHANCED HIPC INITIATIVE.
(a)

Authority.—
(1)

In general.—
The Secretary of the Treasury should immediately commence efforts within the Paris Club of Official Creditors, the International Bank for Reconstruction and Development, the International Monetary Fund, and other appropriate multilateral development institutions to modify the Enhanced HIPC Initiative so that the amount of debt stock reduction approved for a country eligible for debt relief under the Enhanced HIPC Initiative shall be sufficient to reduce, for each of the first 3 years after the date of enactment of this section or the Decision Point, whichever is later—
(A)
the net present value of the outstanding public and publicly guaranteed debt of the country—
(i)
as of the decision point if the country has already reached its decision point; or
(ii)
as of the date of enactment of this Act, if the country has not reached its decision point,
to not more than 150 percent of the annual value of exports of the country for the year preceding the Decision Point; and
(B)
the annual payments due on such public and publicly guaranteed debt to not more than—
(i)
10 percent or, in the case of a country suffering a public health crisis (as defined in subsection (e)), not more than 5 percent, of the amount of the annual current revenues received by the country from internal resources; or
(ii)
a percentage of the gross national product of the country, or another benchmark, that will yield a result substantially equivalent to that which would be achieved through application of clause (i).
(2)

Limitation.—
In financing the objectives of the Enhanced HIPC Initiative, an international financial institution shall give priority to using its own resources.
(b)

Relation to Poverty and the Environment.—
Debt cancellation under the modifications to the Enhanced HIPC Initiative described in subsection (a) should not be conditioned on any agreement by an impoverished country to implement or comply with policies that deepen poverty or degrade the environment, including any policy that—
(1)
implements or extends user fees on primary education or primary health care, including prevention and treatment efforts for HIV/AIDS, tuberculosis, malaria, and infant, child, and maternal well-being;
(2)
provides for increased cost recovery from poor people to finance basic public services such as education, health care, clean water, or sanitation;
(3)
reduces the country's minimum wage to a level of less than $2 per day or undermines workers' ability to exercise effectively their internationally recognized worker rights, as defined under section 526(e) of the Foreign Operations, Export Financing and Related Programs Appropriations Act, 1995 (22 U.S.C. 262p–4p); or
(4)
promotes unsustainable extraction of resources or results in reduced budget support for environmental programs.
(c)

Conditions.—
A country shall not be eligible for cancellation of debt under modifications to the Enhanced HIPC Initiative described in subsection (a) if the government of the country—
(1)
has an excessive level of military expenditures;
(2)
has repeatedly provided support for acts of international terrorism, as determined by the Secretary of State under section 6(j)(1) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)) or section 620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a));
(3)
is failing to cooperate on international narcotics control matters; or
(4)
engages in a consistent pattern of gross violations of internationally recognized human rights (including its military or other security forces).
(d)

Programs To Combat HIV/AIDS and Poverty.—
A country that is otherwise eligible to receive cancellation of debt under the modifications to the Enhanced HIPC Initiative described in subsection (a) may receive such cancellation only if the country has agreed—
(1)
to ensure that the financial benefits of debt cancellation are applied to programs to combat HIV/AIDS and poverty, in particular through concrete measures to improve basic services in health, education, nutrition, and other development priorities, and to redress environmental degradation;
(2)
to ensure that the financial benefits of debt cancellation are in addition to the government's total spending on poverty reduction for the previous year or the average total of such expenditures for the previous 3 years, whichever is greater;
(3)
to implement transparent and participatory policymaking and budget procedures, good governance, and effective anticorruption measures; and
(4)
to broaden public participation and popular understanding of the principles and goals of poverty reduction.
(e)

Definitions.—
In this section:
(1)

Country suffering a public health crisis.—
The term “country suffering a public health crisis” means a country in which the HIV/AIDS infection rate, as reported in the most recent epidemiological data for that country compiled by the Joint United Nations Program on HIV/AIDS, is at least 5 percent among women attending prenatal clinics or more than 20 percent among individuals in groups with high-risk behavior.
(2)

Decision point.—
The term “Decision Point” means the date on which the executive boards of the International Bank for Reconstruction and Development and the International Monetary Fund review the debt sustainability analysis for a country and determine that the country is eligible for debt relief under the Enhanced HIPC Initiative.
(3)

Enhanced hipc initiative.—
The term “Enhanced HIPC Initiative” means the multilateral debt initiative for heavily indebted poor countries presented in the Report of G–7 Finance Ministers on the Cologne Debt Initiative to the Cologne Economic Summit, Cologne, June 18–20, 1999.
SEC. 1626.
[22 U.S.C. 262p–9]

REFORM OF THE “DOING BUSINESS” REPORT OF THE WORLD BANK.
(a)
The Secretary of the Treasury shall instruct the United States Executive Directors at the International Bank for Reconstruction and Development, the International Development Association, and the International Finance Corporation of the following United States policy goals, and to use the voice and vote of the United States to actively promote and work to achieve these goals:
(1)
Suspension of the use of the “Employing Workers” Indicator for the purpose of ranking or scoring country performance in the annual Doing Business Report of the World Bank until a set of indicators can be devised that fairly represent the value of internationally recognized workers' rights, including core labor standards, in creating a stable and favorable environment for attracting private investment. The indicators shall bring to bear the experiences of the member governments in dealing with the economic, social and political complexity of labor market issues. The indicators should be developed through collaborative discussions with and between the World Bank, the International Finance Corporation, the International Labor Organization, private companies, and labor unions.
(2)
Elimination of the “Labor Tax and Social Contributions” Subindicator from the annual Doing Business Report of the World Bank.
(3)
Removal of the “Employing Workers” Indicator as a “guidepost” for calculating the annual Country Policy and Institutional Assessment score for each recipient country.
(b)
Within 60 days after the date of the enactment of this section, the Secretary of the Treasury shall provide an instruction to the United States Executive Directors referred to in subsection (a) to take appropriate actions with respect to implementing the policy goals of the United States set forth in subsection (a), and such instruction shall be posted on the website of the Department of the Treasury.
SEC. 1627.
[22 U.S.C. 262p–10]

ENHANCING THE TRANSPARENCY AND EFFECTIVENESS OF THE INSPECTION PANEL PROCESS OF THE WORLD BANK.
(a)

Enhancing Transparency in Implementation of Management Action Plans.—
The Secretary of the Treasury shall direct the United States Executive Directors at the World Bank to seek to ensure that World Bank Procedure 17.55, which establishes the operating procedures of Management with regard to the Inspection Panel, provides that Management prepare and make available to the public semiannual progress reports describing implementation of Action Plans considered by the Board; allow and receive comments from Requesters and other Affected Parties for two months after the date of disclosure of the progress reports; post these comments on World Bank and Inspection Panel websites (after receiving permission from the requestors to post with or without attribution); submit the reports to the Board with any comments received; and make public the substance of any actions taken by the Board after Board consideration of the reports.
(b)

Safeguarding the Independence and Effectiveness of the Inspection Panel.—
The Secretary of the Treasury shall direct the United States Executive Directors at the World Bank to continue to promote the independence and effectiveness of the Inspection Panel, including by seeking to ensure the availability of, and access by claimants to, the Inspection Panel for projects supported by World Bank resources.
(c)

Evaluation of Country Systems.—
The Secretary of the Treasury shall direct the United States Executive Directors at the World Bank to request an evaluation by the Independent Evaluation Group on the use of country environmental and social safeguard systems to determine the degree to which, in practice, the use of such systems provides the same level of protection at the project level as do the policies and procedures of the World Bank.
(d)

World Bank Defined.—
In this section, the term “World Bank” means the International Bank for Reconstruction and Development and the International Development Association. The Secretary of the Treasury shall instruct the United States Executive Director at each of the International Financial Institutions 51 (as defined in section 1701(c)(2) of this Act) to use the voice and vote of the United States to oppose the provision of loans or other use of the funds of the respective institution to any country the government of which the Secretary of State has determined, for purposes of section 6(j) of the Export Administration Act of 1979, section 620A of the Foreign Assistance Act of 1961, or section 40 of the Arms Export Control Act, to be a government that has repeatedly provided support for acts of international terrorism.52
^{51}
So in law. Probably should not be capitalized.
^{52}
The placement of the second sentence in subsection (d) is so in law. Section 1404 of Public Law 111–32 amends title XVI by inserting a new run-in sentence at the end of such title. See 22 U.S.C. 262p–11.
SEC. 1628.
[22 U.S.C. 262p–12]

CANCELLATION OF HAITI'S DEBTS TO INTERNATIONAL FINANCIAL INSTITUTIONS.
(a)

In General.—
The Secretary of the Treasury should direct the United States Executive Director at the International Monetary Fund, the International Development Association, the Inter-American Development Bank, the International Fund for Agricultural Development, and other multilateral development institutions (as defined in section 1701(c)(3)) to use the voice, vote and influence of the United States at each such institution to seek to achieve—
(1)
the immediate and complete cancellation of any and all remaining debts owed by Haiti to such institutions;
(2)
the suspension of Haiti's debt service payments to such institutions until such time as the debts are canceled completely; and
(3)
the provision, before February 1, 2015, of emergency, humanitarian and reconstruction assistance from such institutions to Haiti in the form of grants or other assistance such that Haiti does not accumulate debt.
(b)

Use of Certain Funds for Assistance to Haiti.—
The Secretary of the Treasury should instruct the United States Executive Director of the International Monetary Fund to advocate the use of some of the realized windfall profits that exceed the required contribution to the Poverty Reduction and Growth Trust (as referenced in the IMF Reforms Financial Facilities for Low-Income Countries Public Information Notice (PIN) No. 09/94) from the ongoing sale of 12,965,649 ounces of gold acquired since the second Amendment of the Fund's Article of Agreement, to provide debt stock relief and debt service relief for Haiti and, before February 1, 2015, to provide grants for Haiti.
(c)

Securing Other Relief for Haiti.—
The Secretary of the Treasury and the Secretary of State should use all appropriate diplomatic influence to secure cancellation of any and all remaining bilateral, multilateral and private creditor debt owed by Haiti.
SEC. 1629.53
[22 U.S.C. 262p–13]

SUPPORT FOR CAPACITY OF THE INTERNATIONAL MONETARY FUND TO PREVENT MONEY LAUNDERING AND FINANCING OF TERRORISM.
The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to use the voice and vote of the United States to support the increased use of the administrative budget of the Fund for technical assistance that strengthens the capacity of members of the Fund to prevent money laundering and the financing of terrorism.
^{53}
Section 1629 was added to the end of title XVI of this Act by section 7125(a) of division F of Public Law 116–92. Section 7125(b) of division F of such Public Law provides as follows: “Effective on the date that is 5 years after the date of the enactment of this Act [effective date is December 20, 2024], section 1629 of the International Financial Institutions Act, as added by subsection (a), is repealed.”.
SEC. 1630.54
[22 U.S.C. 262p-14]

SUPPORT TO ENHANCE THE CAPACITY OF FUND MEMBERS TO EVALUATE THE LEGAL AND FINANCIAL TERMS OF SOVEREIGN DEBT CONTRACTS.
The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to use the voice and vote of the United States to advocate that the Fund promote international standards and best practices with respect to sovereign debt contracts and provide technical assistance to Fund members, and in particular to lower middle-income countries and countries eligible to receive assistance from the International Development Association, seeking to enhance their capacity to evaluate the legal and financial terms of sovereign debt contracts with multilateral, bilateral, and private sector creditors.
^{54}
Section 6103(a) of division F of Public Law 117-81 provides for an amendment to add section 1630 at the end of Title XVI of the International Financial Institutions Act (22 U.S.C. 262p et seq.). Subsection (c) of such section 6103 states “The amendment made by subsection (a) shall have no force or effect after the 5-year period that begins with the date of the enactment of this Act” [Effective December 27, 2026].
SEC. 1631.55
[22 U.S.C. 262p-15]

UNITED STATES POLICY ON BURMA AT THE INTERNATIONAL MONETARY FUND, THE WORLD BANK GROUP, AND THE ASIAN DEVELOPMENT BANK.
^{55}
Section 6104(b) of division F of Public Law 117-81 provides for an amendment to add section 1631 at the end of Title XVI of the International Financial Institutions Act (22 U.S.C. 262p et seq.). Subsection (c) of such section 6104 provides for a repeal of section 1631 subject to the earlier of a conditional or sunset effective date. For details, see section 6104(c) of such Public Law.
(a)

Policy of the United States.—
The Secretary of Treasury shall instruct the United States Executive Directors at the International Monetary Fund, the World Bank Group, and the Asian Development Bank to inform the respective institution that it is the policy of the United States to oppose, and to use the voice and vote of the United States to vote against, any loan or financial assistance to Burma through the State Administration Council, or any successor entity controlled by the military, except for humanitarian assistance channeled through an implementing agency not controlled by the Burmese military.
(b)

Submission of Written Statements.—
No later than 60 calendar days after a meeting of the Board of Directors of the World Bank Group or the Asian Development Bank, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate any written statement presented at the meeting by the United States Executive Director concerning the United States policy described in subsection (a) or the United States position on any strategy, policy, loan, extension of financial assistance, or technical assistance related to Burma considered by the Board.
(c)

Waiver.—
The President of the United States may waive the application of subsection (a) on a case-by-case basis upon certifying to the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate that the waiver—
(1)
substantially promotes the objective of delivering humanitarian assistance to the civilian population of Burma, including a detailed explanation as to the need for such a waiver, the nature of the humanitarian assistance, the mechanisms through which such assistance will be delivered, and the oversight safeguards that will accompany such assistance; or
(2)
is otherwise in the national interest of the United States, with a detailed explanation of the reasons therefor.
(d)

World Bank Group Defined.—
In this section, the term “World Bank Group” means the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, and the Multilateral Investment Guarantee Agency.
SEC. 1632.56
[22 U.S.C. 262p-16]

UNITED STATES POLICY ON WORLD BANK GROUP AND ASIAN DEVELOPMENT BANK ASSISTANCE TO THE PEOPLE’S REPUBLIC OF CHINA.
(a)

In General.—
The Secretary of the Treasury shall instruct the United States Executive Director at each international financial institution of the World Bank Group and at the Asian Development Bank to use the voice and vote of the United States at the respective institution to vote against the provision of any loan, extension of financial assistance, or technical assistance to the People’s Republic of China unless the Secretary of the Treasury has certified to the appropriate congressional committees that—
(1)
the Government of the People’s Republic of China and any lender owned or controlled by the Government of the People’s Republic of China have demonstrated a commitment—
(A)
to the rules and principles of the Paris Club, or of other similar coordinated multilateral initiatives on debt relief and debt restructuring in which the United States participates, including with respect to debt transparency and appropriate burden-sharing among all creditors;
^{56}
Section 5701(a) of division E of Public Law 117–263 amends title XVI by adding at the end a new section 1632. Subsection (b) of such section 5701 provides “[t]he amendment made by subsection (a) is repealed effective on the date that is 7 years after the effective date of this section.”.
(B)
to the practice of presumptive public disclosure of the terms and conditions on which they extend credit to other governments (without regard to the form of any such extension of credit);
(C)
not to enforce any agreement terms that may impair their own or the borrowers’ capacity fully to implement any commitment described in subparagraph (A) or (B); and
(D)
not to enter into any agreement containing terms that may impair their own or the borrowers’ capacity fully to implement any commitment described in subparagraph (A) or (B); or
(2)
the loan or assistance is important to the national interest of the United States, as described in a detailed explanation by the Secretary to accompany the certification.
(b)

Definitions.—
In this section:
(1)

Appropriate congressional committees.—
The term “appropriate congressional committees” means the Committee on Financial Services of the House of Representatives and the Committee on Foreign Relations of the Senate.
(2)

World bank group.—
The term “World Bank Group” means the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, and the Multilateral Investment Guarantee Agency.
SEC. 1633.57
[22 U.S.C. 262p-17]

SUPPORT FOR INTERNATIONAL INITIATIVES TO PROVIDE DEBT RESTRUCTURING OR RELIEF TO DEVELOPING COUNTRIES WITH UNSUSTAINABLE LEVELS OF DEBT.
(a)

Debt Relief.—
The Secretary of the Treasury, in consultation with the Secretary of State, shall—
(1)
engage with international financial institutions, the G20, and official and commercial creditors to advance support for prompt and effective implementation and improvement of the Common Framework for Debt Treatments beyond the DSSI (in this section referred to as the “Common Framework”), or any successor framework or similar coordinated international debt treatment process in which the United States participates through the establishment and publication of clear and accountable—
(A)
debt treatment benchmarks designed to achieve debt sustainability for each participating debtor;
(B)
standards for appropriate burden-sharing among all creditors with material claims on each participating debtor, without regard for their official, private, or hybrid status;
^{57}
Section 5702(a) of division E of Public Law 117–263 amends title XVI by adding at the end a new section 1633. Subsection (b) of such section 5701 provides “[t]he amendment made by subsection (a) is repealed effective on the date that is 5 years after the effective date of this section.”.
(C)
robust debt disclosure by creditors, including the People’s Republic of China, and debtor countries, including inter-creditor data-sharing and, to the maximum extent practicable, public disclosure of material terms and conditions of claims on participating debtors;
(D)
expansion of Common Framework country eligibility to lower middle-income countries who otherwise meet the existing criteria;
(E)
improvements to the Common Framework process with the aim of ensuring access to debt relief in a timely manner for those countries eligible and who request treatment; and
(F)
consistent enforcement and improvement of the policies of multilateral institutions relating to asset-based and revenue-based borrowing by participating debtors, and coordinated standards on restructuring collateralized debt;
(2)
engage with international financial institutions and official and commercial creditors to advance support, as the Secretary finds appropriate, for debt restructuring or debt relief for each participating debtor, including, on a case-by- case basis, a debt standstill, if requested by the debtor country through the Common Framework process from the time of conclusion of a staff-level agreement with the International Monetary Fund, and until the conclusion of a memorandum of understanding with its creditor committee pursuant to the Common Framework, or any successor framework or similar coordinated international debt treatment process in which the United States participates; and
(3)
instruct the United States Executive Director at the International Monetary Fund and the United States Executive Director at the World Bank to use the voice and vote of the United States to advance the efforts described in paragraphs (1) and (2).
(b)

Reporting Requirement.—
Not later than 120 days after the date of the enactment of this section, and annually thereafter, the Secretary of the Treasury, in coordination with the Secretary of State, shall submit to the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate and the Committees on Financial Services and Foreign Affairs of the House of Representatives a report that describes—
(1)
any actions that have been taken, in coordination with international financial institutions, by official creditors, including the government of, and state-owned enterprises in, the People’s Republic of China, and relevant commercial creditor groups to advance debt restructuring or relief for countries with unsustainable debt that have sought restructuring or relief under the Common Framework, any successor framework or mechanism, or under any other coordinated international arrangement for sovereign debt restructuring in which the United States participates;
(2)
any implementation challenges that hinder the ability of the Common Framework to provide timely debt restructuring for any country with unsustainable debt that seeks debt restructuring or debt payment relief, including any refusal of a creditor to participate in appropriate burden-sharing, including failure to share (or publish, as appropriate) all material information needed to assess debt sustainability; and
(3)
recommendations on how to address any challenges identified in paragraph (2).
TITLE XVII—

CONSOLIDATED REPORTING REQUIREMENTS 58
SEC. 1701.59
[22 U.S.C. 262r]

ANNUAL REPORT BY CHAIRMAN OF THE NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND FINANCIAL POLICIES.
(a)

In General.—
The Chairman shall report annually to the Speaker of the House of Representatives, the President of the Senate, and to the President of the United States on the participation of the United States in the international financial institutions. The Chairman shall present such report to the Speaker of the House of Representatives and the President of the Senate not later than April 1 of each year following the close of the fiscal year covered by such report, except that the report for fiscal year 1989 shall be submitted not later than June 1, 1990.
^{58}
Sec. 541(a) of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2514 et seq.) added titles XVII, XVIII, and XIX.
^{59}
Added by Public Law 101–240, sec. 541(a).
(b)

Contents of Reports.—
Each annual report required by subsection (a) shall contain—
(1)
such data and explanations concerning the effectiveness, operations, and policies of the international financial institutions, such recommendations concerning the international financial institutions, and such other data and material as the Chairman may deem appropriate;
(2)
the reports on each specific issue and topic which is required by any other provision of law to be included in the report of the National Advisory Council on International Monetary and Financial Policies required by section 4(b)(5) of the Bretton Woods Agreements Act, as in effect immediately before the date of the enactment of this section;
(3)
a description of each loan or other form of financial assistance approved by any international financial institution during the fiscal year covered by such report, and a discussion of how such loan or financial assistance will benefit the people, particularly the poor people, of the recipient country;
(4)
a review of the success achieved through the multilateral development banks in reducing or eliminating import restrictions and unfair export subsidies which—
(A)
have been determined to be consistent with international agreements; and
(B)
have a serious adverse impact on the United States;
(5)
a description of the actions taken and the progress made in carrying out subsections (a) and (b) of section 45 of the Bretton Woods Agreements Act;
(6)
the report required by section 2018(c) of the International Narcotics Act of 1986 (title II of Public Law 99–570), discussing the actions taken and progress made in encouraging the multilateral development banks to finance drug eradication and crop substitution programs;
(7)
a description of the progress made by the United States Executive Director of the International Monetary Fund with respect to the goals of section 55 of the Bretton Woods Agreements Act;
(8)
a description of the status of procedures in the multilateral development banks specifically designed to increase the productive role of the poor in the economies of the nations which are borrowers from such banks;
(9)
in consultation with the Secretary of State, a report on the progress toward achieving the goals of title VII (other than section 704), including the information required to be reported pursuant to section 701(c), and, for the fiscal year 1990, the report described in section 1613;
(10)
in consultation with the Secretary of State and the Administrator of the Agency for International Development, an assessment of the progress being made to implement the objectives of title XIII; and
(11)
a report on—
(A)
the progress made in transforming government-owned enterprises into privately owned enterprises as described in section 1612(b);
(B)
the performance of the privately owned enterprises resulting from such transformation; and
(C)
the contributions of development finance companies toward strengthening the private sector in member borrowing countries.
(c)

Definitions.—
As used in this title, title XVIII, and title XIX:
(1)

Chairman.—
The term “Chairman” means the Chairman of the National Advisory Council on International Monetary and Financial Policies.
(2)

International financial institutions.—
The term “international financial institutions” means the International Monetary Fund, International Bank for Reconstruction and Development, European Bank for Reconstruction and Development,60 International Development Association, International Finance Corporation, Multilateral Investment Guarantee Agency, African Development Bank, African Development Fund, Asian Development Bank, Inter-American Development Bank, Bank for Economic Cooperation and Development in the Middle East and North Africa,61 and Inter-American Investment Corporation.
^{60}
Sec. 562(c)(10)(A) of Public Law 101–513 (104 Stat. 2036) inserted “European Bank for Reconstruction and Development”.
^{61}
Sec. 710(a) of sec. 101(c) of title I of Public Law 104–208 (110 Stat. 3009) inserted “Bank for Economic Cooperation and Development in the Middle East and North Africa,”. Technical mistake—there should not be two commas.
(3)

Multilateral development institutions.—
The term “multilateral development institutions” means the international financial institutions other than the International Monetary Fund.
(4)

Multilateral development banks.—
The term “multilateral development banks” means the multilateral development institutions other than the Multilateral Investment Guarantee Agency.
(d)

Testimony Required.—
Upon request of the Committee on Banking, Finance and Urban Affairs 62 of the House of Representatives, the Chairman shall testify before the Committee to support and explain each annual report required by subsection (a). If the President has delegated to a person or persons other than the Chairman the authority to manage United States participation in the international financial institutions which was vested in the President by section 1(b) of the Reorganization Plan No. 4 of 1965, such person or persons shall, upon request of the Committee, accompany the Chairman and testify before the Committee with regard to such report. The Chairman and such other person or persons shall assess, in their testimony, the effectiveness of the international financial institutions, the major issues affecting United States participation, the major developments in the past year, the prospects for the coming year, United States policy goals with respect to the international financial institutions, and any specific issues addressed to them by any member of the Committee.
^{62}
Section 1(a)(2) of Public Law 104-14 (109 Stat. 186) provided that references to the Committee on Banking, Finance, and Urban Affairs of the House of Representatives shall be treated as referring to the Committee on Banking and Financial Services of the House of Representatives.
(e)

Advisory Committee on IMF Policy.—
(1)

In general.—
The Secretary of the Treasury should establish an International Monetary Fund Advisory Committee (in this subsection referred to as the “Advisory Committee”).
(2)

Membership.—
The Advisory Committee should consist of members appointed by the Secretary of the Treasury, after appropriate consultations with the relevant organizations. Such members should include representatives from industry, representatives from agriculture, representatives from organized labor, representatives from banking and financial services, and representatives from nongovernmental environmental and human rights organizations.63
^{63}
Added by Public Law 105–277, 112 Stat. 2681–228.
SEC. 1702.
[22 U.S.C. 262r–1]

TRANSMISSION TO THE CONGRESS OF OPERATING SUMMARIES OF THE MULTILATERAL DEVELOPMENT BANKS.
The Secretary of the Treasury shall transmit to the Congress, on a monthly basis, current copies of the Monthly Operating Summary of the International Bank for Reconstruction and Development, showing the loan proposals or appraisal reports under consideration and the status of those loan proposals or appraisal reports within the Bank. The Secretary of the Treasury shall also transmit to the Congress, at such times as may be appropriate, comparable documents prepared by the other multilateral development banks which show the loans or credits under consideration in the other multilateral development banks.
SEC. 1703.
[22 U.S.C. 262r–2]

COMBINED REPORT ON EFFECT OF PENDING MULTILATERAL DEVELOPMENT BANK LOANS ON ENVIRONMENT, NATURAL RESOURCES, PUBLIC HEALTH, AND INDIGENOUS PEOPLES.
Not later than April 1 and October 1 of each year, the Administrator of the Agency for International Development, in consultation with the Secretary of the Treasury and the Secretary of State, shall submit to the Committee on Appropriations and the Committee on Banking, Finance and Urban Affairs 64 of the House of Representatives, and the Committee on Appropriations and the Committee on Foreign Relations of the Senate, as a combined report, the reports required by section 1303(c) of this Act and by section 537(h)(2) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (sec. 1(e) of Public Law 100–202).
^{64}
Section 1(a)(2) of Public Law 104-14 (109 Stat. 186) provided that references to the Committee on Banking, Finance, and Urban Affairs of the House of Representatives shall be treated as referring to the Committee on Banking and Financial Services of the House of Representatives.
SEC. 1704.
[22 U.S.C. 262r–3]

REPORTS ON FINANCIAL STABILIZATION PROGRAMS LED BY THE INTERNATIONAL MONETARY FUND IN CONNECTION WITH FINANCING FROM THE EXCHANGE STABILIZATION FUND.
(a)

In General.—
The Secretary of the Treasury, in consultation with the Secretary of Commerce and other appropriate Federal agencies, shall prepare reports on the implementation of financial stabilization programs (and any material terms and conditions thereof) led by the International Monetary Fund in countries in connection with which the United States has made a commitment to provide, or has provided financing from the stabilization fund established under section 5302 of title 31, United States Code. The reports shall include the following:
(1)
A description of the condition of the economies of countries requiring the financial stabilization programs, including the monetary, fiscal, and exchange rate policies of the countries.
(2)
A description of the degree to which the countries requiring the financial stabilization programs have fully implemented financial sector restructuring and reform measures required by the International Monetary Fund, including—
(A)
ensuring full respect for the commercial orientation of commercial bank lending;
(B)
ensuring that governments will not intervene in bank management and lending decisions (except in regard to prudential supervision);
(C)
the enactment and implementation of appropriate financial reform legislation;
(D)
strengthening the domestic financial system and improving transparency and supervision; and
(E)
the opening of domestic capital markets.
(3)
A description of the degree to which the countries requiring the financial stabilization programs have fully implemented reforms required by the International Monetary Fund that are directed at corporate governance and corporate structure, including—
(A)
making nontransparent conglomerate practices more transparent through the application of internationally accepted accounting practices, independent external audits, full disclosure, and provision of consolidated statements; and
(B)
ensuring that no government subsidized support or tax privileges will be provided to bail out individual corporations, particularly in the semiconductor, steel, and paper industries.
(4)
A description of the implementation of reform measures required by the International Monetary Fund to deregulate and privatize economic activity by ending domestic monopolies, undertaking trade liberalization, and opening up restricted areas of the economy to foreign investment and competition.
(5)
A detailed description of the trade policies of the countries, including any unfair trade practices or adverse effects of the trade policies on the United States.
(6)
A description of the extent to which the financial stabilization programs have resulted in appropriate burden sharing among private sector creditors, including rescheduling of outstanding loans by lengthening maturities, agreements on debt reduction, and the extension of new credit.
(7)
A description of the extent to which the economic adjustment policies of the International Monetary Fund and the policies of the government of the country adequately balance the need for financial stabilization, economic growth, environmental protection, social stability, and equity for all elements of the society.
(8)
Whether International Monetary Fund involvement in labor market flexibility measures has had a negative effect on core worker rights, particularly the rights of free association and collective bargaining.
(9)
A description of any pattern of abuses of core worker rights in recipient countries.
(10)
The amount, rate of interest, and disbursement and repayment schedules of any funds disbursed from the stabilization fund established under section 5302 of title 31, United States Code, in the form of loans, credits, guarantees, or swaps, in support of the financial stabilization programs.
(11)
The amount, rate of interest, and disbursement and repayment schedules of any funds disbursed by the International Monetary Fund to the countries in support of the financial stabilization programs.
(b)

Timing.—
Not later than March 15, 1999, and semiannually thereafter, the Secretary of the Treasury shall submit to the Committees on Banking and Financial Services, Ways and Means, and International Relations of the House of Representatives and the Committees on Finance, Foreign Relations, and Banking, Housing, and Urban Affairs of the Senate a report on the matters described in subsection (a).
SEC. 1705.
[22 U.S.C. 262r–4]

ANNUAL REPORT AND TESTIMONY ON THE STATE OF THE INTERNATIONAL FINANCIAL SYSTEM, IMF REFORM, AND COMPLIANCE WITH IMF AGREEMENTS.
(a)

Reports.—
Not later than October 1 of each year, the Secretary of the Treasury shall submit to the Committees on Banking and Financial Services and Ways and Means of the House of Representatives and the Committees on Finance and Foreign Relations of the Senate a written report on (1) the progress (if any) made by the United States Executive Director at the International Monetary Fund in influencing the International Monetary Fund to adopt the policies and reform its internal procedures in the manner described in section 1503, and (2) the progress made by the International Monetary Fund in adopting and implementing the policies described in section 801(c)(1)(B) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001.
(b)

Testimony.—
After submitting the report required by subsection (a) but not later than March 1 of each year, the Secretary of the Treasury shall appear before the Committee on Banking and Financial Services of the House Representatives and the Committee on Foreign Relations of the Senate and present testimony on—
(1)
any progress made in reforming the International Monetary Fund;
(2)
the status of efforts to reform the international financial system;
(3)
the compliance of countries which have received assistance from the International Monetary Fund with agreements made as a condition of receiving the assistance; and
(4)
the status of implementation of international anti-money laundering and counterterrorist financing standards by the International Monetary Fund, the multilateral development banks, and other multilateral financial policymaking bodies.
SEC. 1706.
[22 U.S.C. 262r–5]

Repealed by section 592 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001 (Public Law 106–429,114 Stat. 1900A–59).
TITLE XVIII—

EXPORT ENHANCEMENT
SEC. 1801.65
[22 U.S.C. 262s]

MULTILATERAL DEVELOPMENT BANK PROCUREMENT.
(a)

Executive Directors.—
The Secretary of the Treasury shall instruct the United States Executive Director of each multilateral development bank to attach a high priority to promoting opportunities for exports for goods and services from the United States and, in carrying out this function, to investigate thoroughly any complaints from United States bidders about the awarding of procurement contracts by the multilateral development banks to ensure that all contract procedures and rules of the banks are observed and that United States firms are treated fairly.
^{65}
Originally enacted as sec. 3202 of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100–418; 102 Stat. 1107), sec. 541(b)(1) of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2517) transferred text to this Act and redesignated such as sec. 1801.
(b)

Officer of Procurement.—
(1)

Establishment.—
The Secretary of the Treasury shall designate, within the Office of International Affairs in the Department of the Treasury, an officer of multilateral development bank procurement.
(2)

Function.—
The officer shall act as the liaison between the Department of the Treasury, the Department of Commerce, and the United States Executive Directors' offices in the multilateral development banks, in carrying out this section. The officer shall cooperate with the Department of Commerce in efforts to improve opportunities for multilateral development bank procurement by United States companies.
(b)

Multilateral Development Bank Defined.—
As used in this section, the term “multilateral development bank” includes the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the Inter-American Investment Corporation, the Asian Development Bank, the African Development Bank, and the African Development Fund.
SEC. 1802.
[22 U.S.C. 262s–1]

PROCUREMENT OPPORTUNITIES FOR UNITED STATES FIRMS.
The Secretary of the Treasury shall instruct the United States Executive Directors of the multilateral development institutions to take all possible steps to ensure that information relating to potential procurement opportunities for United States firms is expeditiously communicated to the Secretary of the Treasury, the Secretary of State, and the Secretary of Commerce, and is disseminated as widely as possible to large and small businesses.
SEC. 1803.66
[22 U.S.C. 262s–2]

COMMERCIAL SERVICE OFFICERS AND MULTILATERAL DEVELOPMENT BANK PROCUREMENT.
(a)

Appointment of Commercial Service Officers To Serve With Executive Directors.—
The Secretary of Commerce, in consultation with the Secretary of the Treasury, shall appoint a procurement officer, who is a representative of the International Trade Administration or a Commercial Service Officer of the United States and Foreign Commercial Service, to serve, on a full-time or part-time basis, with each of the Executive Directors of the multilateral development banks in which the United States participates.
^{66}
Originally enacted as sec. 2302 of the Omnibus Trade and Competitiveness Act of 1988 and codified at 15 U.S.C. 4722. Sec. 541(b)(2) of the International Development and Finance Act of 1989 (Public Law 101–240; 103 Stat. 2517) transferred sec. 2302 to this Act and redesignated it as sec. 1803. Sec. 541(b)(2) also struck out subsec. (c), which provided definitions for “multilateral development bank”; see sec. 1701(c) of this Act.
Sec. 501 of the Jobs Through Exports Act of 1992 (Public Law 102–549; 106 Stat. 3663; 22 U.S.C. 262s–2 note) provided the following:
``sec. 501. additional procurement officers.
``(a) Appointment.—The Secretary of Commerce, in consultation with the Secretary of the Treasury, shall appoint one or more full-time additional procurement officers, for each multilateral development bank, to promote exports of goods and services from the United States by doing the following:
``(1) Acting as the liaison between the business community and one or more multilateral development banks, whether or not the banks have offices in the United States. The Secretary of Commerce shall ensure that the procurement officer has access to, and disseminates to United States businesses, information relating to projects which are being proposed by the multilateral development bank involved, and bid specifications and deadlines for projects about to be developed by the bank. The procurement officer shall make special efforts to disseminate such information to small- and medium-sized businesses interested in participating in such projects. The procurement officer shall explore opportunities for disseminating such information through private sector, nonprofit organizations.
``(2) Taking actions to assure that United States businesses are fully informed of bidding opportunities for projects for which loans have been made by the multilateral development bank involved.
``(3) Taking actions to assure that United States businesses can focus on projects in which they have a particular interest or competitive advantage, and to permit them to compete and have an equal opportunity in submitting timely and conforming bidding documents.
``(b) Definition.—As used in this section, the term “multilateral development bank” has the meaning given that term in section 1701(c) of the International Financial Institutions Act (22 U.S.C. 262r(c)).
``(c) Authorization of Appropriations.—There are authorized to be appropriated to the Secretary of Commerce $1,000,000 for each of the fiscal years 1993 and 1994 to carry out this section. Amounts appropriated pursuant to this subsection shall be available only for the purpose of making the appointment of additional procurement officers required by subsection (a).''.
(b)

Functions of Officers.—
Each procurement officer appointed under subsection (a) shall assist the United States Executive Director with respect to whom such officer is appointed in promoting opportunities for exports of goods and services from the United States by doing the following:
(1)
Acting as the liaison between the business community and the multilateral development bank involved, whether or not the bank has offices in the United States. The Secretary of Commerce shall ensure that the procurement officer has access to, and disseminates to United States businesses, information relating to projects which are being proposed by the multilateral development bank, and bid specifications and deadlines for projects about to be developed by the bank. The procurement officer shall make special efforts to disseminate such information to small and medium-sized businesses interested in participating in such projects. The procurement officer shall explore opportunities for disseminating such information through private sector, nonprofit organizations.
(2)
Taking actions to assure that United States businesses are fully informed of bidding opportunities for projects for which loans have been made by the multilateral development bank involved.
(3)
Taking actions to assure that United States businesses can focus on projects in which they have a particular interest or competitive advantage, and to permit them to compete and have an equal opportunity in submitting timely and conforming bidding documents.
TITLE XIX—

PERSONNEL PRACTICES
SEC. 1901.
[22 U.S.C. 262t]

PERSONNEL PRACTICES.
(a)

Statement of Policy.—
It shall be the policy of the United States that no initiatives, discussions, or recommendations concerning the placement or removal of any personnel employed by the international financial institutions shall be based on the political philosophy or activity of the individual under consideration.
(b)

Consultation.—
The Secretary of the Treasury shall consult with the Chairman and the ranking minority member of the Committee on Banking, Finance and Urban Affairs 67 of the House of Representatives and the Committee on Foreign Relations of the Senate before any discussion or recommendations by any official of the United States Government concerning the placement or removal of any principal officer of any international financial institutions.
^{67}
Sec. 1(a)(2) of Public Law 104–14 (109 Stat. 186) provided that references to the Committee on Banking, Finance and Urban Affairs of the House of Representatives shall be treated as referring to the Committee on Banking and Financial Services of the House of Representatives.