[Congressional Record Volume 146, Number 111 (Tuesday, September 19, 2000)]
[Senate]
[Pages S8769-S8770]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SENATE CONCURRENT RESOLUTION 136--EXPRESSING THE SENSE OF THE CONGRESS 
REGARDING THE IMPORTANCE OF BRINGING TRANSPARENCY, ACCOUNTABILITY, AND 
     EFFECTIVENESS TO THE WORLD BANK AND ITS PROGRAMS AND PROJECTS

  Mr. CRAPO (for himself and Mr. Enzi) submitted the following 
concurrent resolution; which was referred to the Committee on Foreign 
Relations:

                            S. Con. Res. 136

       Whereas the United States is the single largest shareholder 
     of the International Bank for Reconstruction and Development 
     and the International Development Association (in this 
     concurrent resolution referred to as the ``World Bank'');
       Whereas recent reports by the General Accounting Office and 
     others raise serious questions about management at the World 
     Bank, corruption involving World Bank programs and projects, 
     and the lack of effectiveness of World Bank programs and 
     projects;
       Whereas the estimated failure rate of World Bank programs 
     and projects based on the World Bank's data is greater than 
     50 percent, as determined at the time of the final loan 
     disbursement, and the estimated failure rate rises to 65 to 
     70 percent in the most impoverished nations;
       Whereas the United States has an obligation to the American 
     people to ensure that the hard-earned dollars they pay in 
     taxes to the Federal Government are, when made available to 
     the World Bank, being spent efficiently and as they were 
     intended to be spent;
       Whereas the United States has a duty to ensure that the 
     policies and practices of the World Bank are consistent with 
     the laws and objectives of the United States; and
       Whereas the World Bank will continue to seek financial 
     contributions from the United States to fund its programs and 
     projects: Now, therefore, be it
       Resolved by the Senate (the House of Representatives 
     concurring),

     SECTION 1. SENSE OF CONGRESS ON INDEPENDENT PERFORMANCE 
                   AUDITS AND EVALUATIONS OF WORLD BANK PROGRAMS 
                   AND PROJECTS.

       (a) In General.--It is the sense of Congress that--
       (1) the World Bank should publicly commit to execute within 
     one year performance audits and a complete performance 
     evaluation of the effectiveness of its programs and projects 
     by independent private sector firms;
       (2) the individual program and project audits and the 
     complete performance evaluation conducted by the World Bank 
     should be published and meet the requirements of subsection 
     (b);
       (3) the audits and complete performance evaluation of the 
     programs and projects, together with the General Accounting 
     Office

[[Page S8770]]

     review of these audits and evaluations, would help bring 
     necessary transparency, accountability, and effectiveness to 
     the World Bank and its programs and projects; and
       (4) the health and well-being of people around the world 
     would be aided by the World Bank's efforts to ensure that its 
     resources are properly and appropriately directed to those 
     truly in need.
       (b) Requirements.--The requirements referred to in 
     subsection (a)(2) are the following:
       (1) One-third of the number of the World Bank's programs 
     and projects should be audited at the location of the program 
     or project between four and six years after the final 
     disbursement of World Bank funds with respect to those 
     programs and projects.
       (2) Audited programs and projects should be representative, 
     by sector and recipient country, of the World Bank's programs 
     and projects.
       (3) Results of the individual program and project audits 
     should be compiled into a complete performance evaluation 
     that examines whether the funds loaned by the World Bank are 
     used in a manner that complies with the conditions of the 
     loans and analyzes the direct and indirect costs and benefits 
     of each program or project audited.
       (4) The individual program and project audits and the 
     complete performance evaluation of programs and projects 
     should be performed every 3 years and should examine those 
     programs and projects that have been completed since the 
     submission of the last evaluation.
       (5) Not later than six months after the date of completion 
     of the complete performance evaluation, the General 
     Accounting Office should have complete and unfettered access 
     to the auditors, the individual program and project audits, 
     and the complete performance evaluation and should review and 
     report to Congress on the results and methodologies of the 
     audits and the evaluation, the independence and competence of 
     the auditors, and the appropriateness, thoroughness, and 
     quality of the audit and evaluation procedures.

  Mr. CRAPO. Mr. President, I rise today to introduce a resolution that 
expresses Congress' views on the importance of bringing transparency, 
accountability, and effectiveness to the World Bank. A necessary step 
towards achieving these worthwhile objectives is getting the World Bank 
to carefully and properly examine current programs and projects. The 
resolution I am introducing today calls for the World Bank to commit to 
independent performance audits and evaluations of its programs and 
projects. It outlines some of the steps the World Bank must take to 
begin a much-needed overhaul.
  I share the objectives of the World Bank in reducing poverty in 
developing countries and bolstering their economies. The World Bank 
seeks a ``World Free of Poverty,'' and we can all recognize this as a 
good aim. We live in a global society and all have a role in improving 
the health and well-being of people living in all parts of the world.
  With this said, I fear that the U.S. is sending its taxpayers' hard-
earned dollars to the World Bank with little to show for it. 
Collectively, U.S. taxpayers represent the single largest contributor 
of financial resources to the World Bank. Recent reports by the General 
Accounting Office, the congressionally-mandated and bipartisan 
International Financial Institution Advisory Commission as well as the 
testimony of experts testifying before a hearing I held this summer in 
the Senate Banking Subcommittee on International Trade and Finance, all 
agree on one thing--we can't even tell with a reasonable level of 
certainty that funds the World Bank spends on its programs and projects 
are spent efficiently and as intended to be spent.
  Additionally, right now Congress is being asked to pony up money for 
bilateral debt relief to the Highly Indebted Poor Countries (HIPC) and 
as a contribution to the HIPC Initiative for mulilateral debt relief to 
these poor countries. This allows the multilateral financial 
institutions to forgive debts and make debt service payments that they 
are owed by the HIPCs. In part, HIPC Trust Fund monies are used to 
reimburse the World Bank for debt relief it provides to the HIPCs. We 
don't want to be sending good money after bad. We don't want to support 
failed lending and program practices of any international institutions 
because that would be money wasted. If Congress is to continue 
supporting the HIPC Initiative, we need to send a message that we want 
change.
  This is why it is essential that Congress take a stand for our 
taxpayers who contribute so much money and a stand for the people 
around the globe who the Bank's programs and projects are designed to 
benefit.
  Adopting this resolution makes this statement. It asks the World Bank 
to carefully examine its current activities and the way it conducts 
business. The resolution calls for the World Bank to publicly commit to 
having an independent third party with no vested interest in the 
outcome, conduct a thorough review of the Bank's programs and projects 
through performance audits and a complete performance evaluation that 
is made public.
  A complete and open examination of the Bank's practices, its 
successes and failures, is a win-win for everyone. It's a win for the 
Bank who will know whether its programs are best targeted to achieve 
its mission of `A World Free of Poverty,'' a win for member countries 
who will know whether their monies are being spent as intended, and 
most importantly, a win for people worldwide whose health and well-
being the Bank strives to improve.
  I hope my colleagues will join me in supporting this measure.

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