Page 49 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 262p–4i

the bank’s country implementation review

documents and in the country strategy documents for each borrowing country. Such country strategy documents should describe the

national strategy for productive economic participation of the poor and the steps the bank

plans to take to assist the borrowing country

during the period covered by the country

strategy document.

(5) Such bank should assist countries in assessing and monitoring progress in achieving

poverty alleviation goals and targets through

measurement by appropriate social indicators.

(6) Such bank should adopt procedures and

budgetary allocations for administrative purposes, and establish appropriate staffing levels, to ensure that adequate resources are

available to implement the bank’s program for

enhancing the productive economic participation of the poor, in consultation with non-governmental groups.

(7) Such bank should adopt, as a separate

and major criterion in the allocation of

concessional financing resources, a preferential allocation to each country which undertakes significant efforts to enhance the

productive economic participation of the poor.

(8) Such bank should require each country

which receives structural adjustment assistance to have in place, after a reasonable

phase-in period, a strategy to enhance the productive economic participation of the poor.

(b) Progress report

Before the end of the 1-year period beginning

on December 19, 1989, the Secretary of the Treasury shall submit to the Committee on Banking,

Finance and Urban Affairs and the Committee

on Appropriations of the House of Representatives, and the Committee on Foreign Relations

and the Committee on Appropriations of the

Senate, a report on the following:

(1) The status of advocacy and progress

being made to implement the objectives of

subsection (a) of this section, describing the

success to date, the obstacles encountered,

and future expectations of progress.

(2) A description of the progress to date in

achieving the purposes of section 262p–4f of

this title, including the institutional capacity

and effort devoted to assisting in the development of statistical measures to assess the

well-being of the poor.

(3) A description and evaluation of the

progress to date in developing effective mechanisms for involving non-governmental organizations, directly or indirectly, in the design,

implementation, and monitoring of development projects, programs, and policies of the

multilateral development banks.

(Pub. L. 95–118, title XVI, §1613, as added Pub. L.

101–240, title V, §501, Dec. 19, 1989, 103 Stat. 2505.)

PRIOR PROVISIONS

A prior section 1613 of Pub. L. 95–118 was renumbered

section 1622 and is classified to section 262p–5 of this

title.

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of

House of Representatives treated as referring to Committee on Banking and Financial Services of House of

Representatives by section 1(a) of Pub. L. 104–14, set

out as a note preceding section 21 of Title 2, The Congress.

DEFINITIONS

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

this section.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 262r of this title.

§ 262p–4i. Multilateral development banks and

debt-for-nature exchanges

(a) Directions to United States Executive Directors

The Secretary of the Treasury shall direct the

United States Executive Directors of the multilateral development banks to—

(1) negotiate for the creation in each respective multilateral development bank, except

where the Secretary of the Treasury determines that the provisions of this subsection

have previously been met, of a department

that will—

(A) be responsible for environmental protection and resource conservation, including

support for restoration, protection, and sustainable use policies;

(B) develop and monitor strict environmental guidelines and policies to govern

lending activities; and

(C) actively promote, coordinate and facilitate debt-for-nature exchanges and the

restoration, protection, and sustainable use

of tropical forests, renewable natural resources, endangered ecosystems and species

in debtor countries;

(2) support and encourage the approval of

multilateral development bank loans which

include provisions that foster and facilitate

the implementation of a sound and effective

environmental policy in the borrowing country;

(3) encourage the banks to assist such countries in reducing and restructuring private

debt through the use of a portion of a project

or policy based environmental loan in ways

which will enable such countries to buy back

private debt at a rate of discount available for

such debt, at auction in the secondary market

or through negotiations with creditors holding

such debt;

(4) seek to ensure that staff of each bank facilitate debtor countries’ collaboration with

local and international non-governmental or

private organizations in implementing debtfor-nature exchanges; and

(5) seek to ensure that each bank adopts policy guidelines which to the maximum extent

possible provide for—

(A) the inclusion of sustainable use policies in loan agreements negotiated with borrower members;

(B) the adoption of economic programs to

foster sound environmental policies; and

(C) the provision of debtor countries’ policy changes or significant increases in financial resources for use in at least 1 of the following—

(i) restoration, protection, or sustainable

use of the world’s oceans and atmosphere;
§ 262p–4j TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 50

(ii) restoration, protection, or sustainable use of diverse animal and plant species;

(iii) establishment, restoration, protection, and maintenance of parks and reserves;

(iv) development and implementation of

sound systems of natural resource management;

(v) development and support of local conservation programs;

(vi) training programs to strengthen conservation institutions and increase scientific, technical, and managerial capabilities of individuals and organizations involved in conservation efforts;

(vii) efforts to generate knowledge, increase understanding, and enhance public

commitment to conservation;

(viii) design and implementation of

sound programs of land and ecosystem

management; and

(ix) promotion of regenerative approaches in farming, forestry, and watershed management.

(b) Negotiation of guidelines for restoration, protection, or sustainable use policies

The United States Executive Directors of the

multilateral development banks shall seek to

negotiate with the other executive directors to

provide guidelines for restoration, protection, or

sustainable use policies. Pending the outcome of

such negotiations, the United States Executive

Directors shall consider restoration, protection,

or sustainable use policies to be those which—

(1) support development that maintains and

restores the renewable natural resource base

so that present and future needs of debtor

countries’ populations can be met, while not

impairing critical ecosystems and not exacerbating global environmental problems;

(2) are environmentally sustainable in that

resources are conserved and managed in an effort to remove pressure on the natural resource base and to make judicious use of the

land so as to sustain growth and the availability of all natural resources;

(3) support development that does not exceed

the limits imposed by local hydrological cycles, soil, climate, vegetation, and human cultural practices;

(4) promote the maintenance and restoration

of soils, vegetation, hydrological cycles, wildlife, critical ecosystems (tropical forests, wetlands, and coastal marine resources), biological diversity and other natural resources essential to economic growth and human wellbeing and shall, when using natural resources,

be implemented to minimize the depletion of

such natural resources; and

(5) take steps, wherever feasible, to prevent

pollution that threatens human health and

important biotic systems and to achieve patterns of energy consumption that meet human

needs and rely on renewable resources.

(c) Inclusion of certain items in guidelines

The United States Executive Directors shall

endeavor to include the provisions of paragraphs

(1) through (5) of subsection (b) of this section in

the guidelines developed through the negotiations specified in this section.

(Pub. L. 95–118, title XVI, §1614, as added Pub. L.

101–240, title V, §512, Dec. 19, 1989, 103 Stat. 2508.)

PRIOR PROVISIONS

A prior section 1614 of Pub. L. 95–118 was renumbered

section 1622 and is classified to section 262p–5 of this

title.

DEFINITIONS

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

this section.

§ 262p–4j. Promotion of lending for environment

The Secretary of the Treasury shall instruct

the United States Executive Director of the

International Bank for Reconstruction and Development to initiate discussions with the other

executive directors of such bank and the management of such bank and propose that, in order

to reduce the future need for bank lending for

reforestation and restoration of environmentally degraded areas, the bank establish a

project and policy based environmental lending

program (including a loan a portion of which

could be used to reduce and restructure private

debt), to be made available to interested countries with a demonstrated commitment to natural resource conservation, which would be based

on—

(1) the estimated long-term economic return

which could be expected from the sustainable

use and protection of tropical forests, including the value of tropical forests for indigenous

people and for science;

(2) the value derived from such services as—

(A) watershed management;

(B) soil erosion control;

(C) the maintenance and improvement of—

(i) fisheries;

(ii) water supply regulation for industrial development;

(iii) food;

(iv) fuel;

(v) fodder; and

(vi) building materials for local communities;

(D) the extraction of naturally occurring

products from locally controlled protected

areas; and

(E) indigenous knowledge of the management and use of natural resources; and

(3) the long-term benefits expected to be derived from maintaining biological diversity

and climate stabilization.

(Pub. L. 95–118, title XVI, §1615, as added Pub. L.

101–240, title V, §512, Dec. 19, 1989, 103 Stat. 2510.)

DEFINITIONS

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

this section.

§ 262p–4k. Promotion of institution-building for

nongovernmental organizations concerned

with environment

The Secretary of the Treasury shall instruct

the United States Executive Directors of the

multilateral development banks to vigorously

promote the adoption of policies and procedures

which seek to—

(1) increase collaboration with, and, where

necessary, strengthen, nongovernmental orga-