22 U.S.C. § 286ll — Fund policy changes

Page 195 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 286ll value of all loans made by such bank to such government during such 3-year period; (2) instruct the United States Executive Di- rector of such bank to propose and actively seek the adoption by the board of Executive Directors of such bank of a resolution estab- lishing as official bank operating policy for fiscal years 1990 through 1995 of such bank the limits specified in paragraph (1); and (3) until the resolution described in para- graph (2) is adopted, undertake, in consulta- tion with the Secretary of State, discussions with other member country governments to secure the consent and cooperation of such governments with respect to the adoption of the limits specified in paragraph (1). (Pub. L. 100–461, title V, § 555, Oct. 1, 1988, 102 Stat. 2268–36.) Editorial Notes CODIFICATION Section is based on section 4 of H.R. 4645, One Hun- dredth Congress, as reported Sept. 28, 1988, and enacted into law by Pub. L. 100–461. Section was not enacted as part of act July 31, 1945, ch. 339, 59 Stat. 512, known as the Bretton Woods Agree- ments Act, which comprises this subchapter. § 286jj. Partial guarantees in connection with debt reduction for borrower countries The Secretary of the Treasury shall instruct the United States Executive Director of the International Bank for Reconstruction and De- velopment to initiate discussions with other di- rectors of such bank and to propose that such bank establish criteria under which such bank would provide partial guarantees on debt service payments by borrower countries to private creditors when such guarantees would serve a catalytic role in facilitating final agreement on financing packages which involve significant debt reduction. (Pub. L. 100–461, title V, § 555, Oct. 1, 1988, 102 Stat. 2268–36.) Editorial Notes CODIFICATION Section is based on section 5 of H.R. 4645, One Hun- dredth Congress, as reported Sept. 28, 1988, and enacted into law by Pub. L. 100–461. Section was not enacted as part of act July 31, 1945, ch. 339, 59 Stat. 512, known as the Bretton Woods Agree- ments Act, which comprises this subchapter. § 286kk. Discussions to enhance capacity of Fund to alleviate potentially adverse impacts of Fund programs on poor and environment The Secretary of the Treasury shall instruct the United States Executive Director of the Fund to seek policy changes by the Fund, through formal initiatives and through bilateral discussions, which will result in— (1) the initiation of a systematic review of policy prescriptions implemented by the Fund, for the purpose of determining whether the Fund’s objectives were met and the social and environmental impacts of such policy pre- scriptions; and (2) the establishment of procedures which ensure the inclusion, in future economic re- form programs approved by the Fund, of pol- icy options which eliminate or reduce the po- tential adverse impact on the well-being of the poor or the environment resulting from such programs. (July 31, 1945, ch. 339, § 55, as added Pub. L. 101–240, title III, § 302, Dec. 19, 1989, 103 Stat. 2500.) § 286ll. Fund policy changes (a) Policy changes within IMF The Secretary of the Treasury shall instruct the United States Executive Director of the Fund to promote regularly and vigorously in program discussions and quota increase negotia- tions the following proposals: (1) Poverty alleviation, reduction of barriers to economic and social progress, and progress toward environmentally sound policies and programs (A)(i) Considerations of poverty alleviation and the reduction of barriers to economic and social progress should be incorporated into all Fund programs and all consultations under ar- ticle IV of the Articles of Agreement of the Fund. (ii) Preparation of Policy Framework Papers should be extended to all nations which have Fund programs and active Bank or Inter- national Development Association lending programs, and existence of a Policy Frame- work Paper should be a precondition for new lending to such nations by the Fund. (iii) All Policy Framework Papers should ar- ticulate the principal poverty, economic, and social measures that the borrowing nation needs to address, and this portion of the Pol- icy Framework Paper (or a summary thereof that includes specific measures and timing) should be made available when the Policy Framework Paper is submitted to the Execu- tive Directors of the Bank and of the Fund for consideration. (iv) In considering whether to allocate re- sources of the Fund to a borrower, the Fund should take into consideration the nature of the program and commitment of the borrower to address the issues referred to in clause (iii). (v) The Fund should establish procedures to enable the Fund to cooperate with the Bank in evaluating the effectiveness of the measures referred to in clause (iii), at the levels of pol- icy, project design, monitoring, and reporting, in the international financial institutions and in the borrowing nations. (B)(i) The Fund should be encouraged to make further progress toward environ- mentally sound policies and programs. (ii) The Fund should incorporate environ- mental considerations into all Fund programs, including consultations under article IV of the Articles of Agreement of the Fund. (iii) The Fund should be encouraged to sup- port the efforts of nations to implement sys- tems of natural resource accounting in their national income accounts. (iv) The Fund should be encouraged to assist and cooperate fully with the statistical re- Page 196 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 286mm search being undertaken by the Organization for Economic Cooperation and Development and by the United Nations in order to facili- tate development and adoption of a generally applicable system for taking account of the depletion or degradation of natural resources in national income accounts. (v) The Fund should be encouraged to con- sider and implement, as appropriate, revisions in its national income reporting systems con- sistent with such new systems as are of gen- eral applicability. (2) Policy audits (A) The Fund should conduct periodic audits to review systematically the policy prescrip- tions recommended and required by the Fund in the areas of poverty and the environment. (B) The purposes of such audits would be— (i) to determine whether the Fund’s objec- tives were met; and (ii) to evaluate the social and environ- mental impacts of the implementation of the policy prescriptions. (C) Such audits would have access to all on- going programs and activities of the Fund and the ability to review the effects of Fund-sup- ported programs, on a country-by-country basis, with respect to poverty, economic devel- opment, and environment. (D) Such audits should be made public as ap- propriate with due respect to confidentiality. (3) Ensuring policy options that increase the productive participation of the poor The Fund should establish procedures that ensure the focus of future economic reform programs approved by the Fund on policy op- tions that increase the productive participa- tion of the poor in the economy. (4) Public access to information (A) The Fund should establish procedures for public access to information. (B) Such procedures shall seek to ensure ac- cess of the public to information while paying due regard to appropriate confidentiality. (C) Policy Framework Papers and the sup- porting documents prepared by the Fund’s mission to a country are examples of docu- ments that should be made public at an appro- priate time and in appropriate ways. (b) Progress report Each annual report of the National Advisory Council on International Monetary and Finan- cial Policies shall describe the following: (1) The actions that the United States Exec- utive Director and other officials have taken to convince the Fund to adopt the proposals set forth in subsection (a) through formal ini- tiatives before the Board and management of the Fund, through bilateral discussions with other member nations, and through any fur- ther quota increase negotiations. (2) The status of the progress being made by the Fund in implementing the proposals set forth in subsection (a). (c) Study The Secretary of the Treasury shall instruct the United States Executive Director to the Fund to urge the Fund— (1) to explore ways to increase the involve- ment and participation of important min- istries, national development experts, environ- mental experts, free-market experts, and other legitimate experts and representatives from the loan-recipient country in the development of Fund programs; and (2) to report on the status of Fund efforts in this regard. (July 31, 1945, ch. 339, § 59, as added Pub. L. 102–511, title X, § 1002, Oct. 24, 1992, 106 Stat. 3357.) § 286mm. Measures to reduce military spending by developing nations (a) Development by Fund of means to measure military spending (1) Position of the United States The United States Executive Director of the Fund shall use the voice and vote of the United States to urge the Fund, in consulta- tion with the Bank, to continue to develop an economic methodology to measure the level of military spending by each developing country. (2) Progress report to the Congress No later than 1 year after October 24, 1992, the Secretary of the Treasury shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate a report on the status of the development by the Fund of a workable economic methodology to measure military spending by developing countries. (b) Annual reports by Fund on levels of military spending The United States Executive Director of the Fund shall use the voice and vote of the United States to urge the Fund, beginning with 1994, to provide the Executive Board of the Fund with annual reports stating the estimate by the Fund of the level of military spending by each devel- oping country in the immediately preceding cal- endar year (or, with respect to developing coun- tries whose fiscal years are not calendar years, in the most recently completed fiscal year of the developing country), not later than the date of the annual fall Interim and Development Com- mittee meetings. (c) Analysis and assessment of military spending to be included in article IV consultations by Fund The United States Executive Director of the Fund shall use the voice and vote of the United States to urge the Fund, beginning no later than the date of the first report provided as described in subsection (b), to include in every article IV consultation with a developing country an anal- ysis of the level of military spending by the de- veloping country in the immediately preceding calendar year (or, with respect to developing countries whose fiscal years are not calendar years, in the most recently completed fiscal year of the developing country). (July 31, 1945, ch. 339, § 60, as added Pub. L. 102–511, title X, § 1003, Oct. 24, 1992, 106 Stat. 3359.)