§262o — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

When asking multilateral development banks for more money, the Secretary of the Treasury must push for changes inside those banks. The changes include a single program to check whether loans help the poorest people (especially women and the poor) and to make future loans help them more; an office or rules to work with community groups, watch how loans affect local people, and make sure loan conditions protect the poor and aboriginal minorities; many more staff trained in environmental and social impact work (hiring and training); a policy-lending program at the International Bank for Reconstruction and Development to support renewable resources and environmental protection; and longer board review time so member governments can read and comment. The Secretary must also tell the U.S. Executive Director at each bank to ask bank managers for an annual report. The report must list the best lending practices from the past year for each major borrowing country or group, covering benefit to the poor; NGO and local or indigenous participation; environmental quality and sustainable resource use; and support for women’s economic and social development.

Title 22, §262o

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(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.

Notes & Related Subsidiaries

Editorial Notes

Codification section 1501 of Pub. L. 95–118 is based on section 701 of title VII of H.R. 3750, One Hundredth Congress, as introduced Dec. 11, 1987, and enacted into law by Pub. L. 100–202.

Statutory Notes and Related Subsidiaries

Definitions The definitions in section 262p–5 of this title apply to this section.

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

Summary

Title 22, §262o

Notes & Related Subsidiaries

Editorial Notes

Statutory Notes and Related Subsidiaries

Citations & Metadata