§262o–1 Military Spending by Recipient Countries; Military Involvement in Economies of Recipient Countries

Summary

The Secretary of the Treasury must tell the U.S. representatives at international financial institutions to favor countries that show they will cut wasteful military costs and be open about military budgets when deciding whether to support or oppose loans. They should look for three things: full, correct yearly data on what the armed forces spend and receive; steps toward honest and public-led government, including reducing the military’s role in the economy; and real cuts in oversized military budgets and forces. The Secretary must also push each institution to watch and talk with borrowing governments about how they spend public money and steer it toward growth and development instead of unproductive items like excessive military spending. The institutions should back loans that help governments improve governance and lower military costs. When giving out money or credit, the institutions must consider how well a government is doing on public accountability, limiting the military’s economic role, and cutting excessive military spending.