§262o Negotiations Concerning Replenishment or Increase in Capital; Annual Reports on Implementation of Lending Policy Goals

Summary

When the United States negotiates adding or increasing money for any multilateral development bank, the Secretary of the Treasury must push for five main changes. Each bank must create one program to measure and increase how much loans help the least advantaged, especially women and the poor. Each bank must set up an office or procedures to work with local nongovernmental organizations, monitor how loans affect local people, and enforce loan conditions that protect the poor and the rights of aboriginal minorities. Regional banks must greatly increase staff trained in environmental or social impact analysis and natural science by hiring more permanent experts and training current staff. The International Bank for Reconstruction and Development must start a policy-based lending program to support sustainable use of renewable resources and protect the environment. Banks must also lengthen board review times so member governments can review and comment on staff recommendations before the board acts. The Secretary must instruct the U.S. Executive Director at each bank to ask management for an annual report. The report must describe the best lending practices from the past year for each major borrowing country or group on four goals: benefit to the poor; involvement of NGOs and local and indigenous people in loan design, planning, implementation, and monitoring; consideration of environmental quality and sustainable use of natural resources; and support for the economic and social development of women.