Page 43 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 262p–2

§ 262p–1. Grassroots Collaboration Program

(a) Proposal for establishment; private involvement; projects or policies for alleviation of

poverty and promotion of environmental

protection

The Secretary of the Treasury shall instruct

the United States Executive Director of the

International Bank for Reconstruction and Development and the International Development

Association to initiate discussions with other

directors of such institutions and to propose the

establishment of a Grassroots Collaboration

Program to develop improved mechanisms for

involving, directly or indirectly, nongovernmental organizations in the design, implementation, and monitoring of development projects financed by, or development policies established

by, such bank or association in order to alleviate poverty and promote environmental protection, including—

(1) encouraging nongovernmental organizations in borrowing countries to participate in

all stages of project planning and country

strategy activities to—

(A) minimize any adverse impact of such

projects or activities on the poor people of

such country;

(B) minimize any adverse impact of such

projects or activities on the environment of

such country; and

(C) maximize the extent to which such

projects or activities will benefit the poor

people of such country;

(2) increasing the direct involvement of nongovernmental organizations in project design,

implementation, or monitoring whenever such

organizations have a distinct comparative advantage over other entities in providing such

services by virtue of their grassroots involvement with poor people, especially women, in a

borrowing country;

(3) providing microenterprise credit for

small scale economic activities through nongovernmental organizations;

(4) supporting the enhancement of the institutional capacity of nongovernmental organizations in borrowing countries as development

practitioners; and

(5) establishing or supporting jointly funded

intermediary mechanisms with nongovernmental organizations to facilitate increased

collaboration between such bank or association and nongovernmental organizations in

borrowing countries.

(b) Implementation and financing of program

It is the sense of the Congress that the Grassroots Collaboration Program described in subsection (a) of this section should be implemented and financed as part of the normal operations of the International Bank for Reconstruction and Development and the International Development Association.

(c) Flexible financing; initial grant

To the extent the activities under the Grassroots Collaboration Program described in subsection (a) of this section need more flexible financing, it is the sense of the Congress that—

(1) such activities could be funded through a

grant from the net income of the International Bank for Reconstruction and Development; and

(2) an initial grant of not less than $50,000,000

should be made for such activities with subsequent annual allocations of such additional

amounts as may be necessary to allow the

Grassroots Collaboration Program to maximize collaboration with nongovernmental organizations in the alleviation of poverty and

the protection of the environment.

(d) Repealed. Pub. L. 101–240, title V, § 541(d)(4),

Dec. 19, 1989, 103 Stat. 2518

(e) Annual reports to Congress

Each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies shall describe the

status of the establishment and operation of the

Grassroots Collaboration Program described in

subsection (a) of this section, the activities

under taken by the Program and the sum of the

amounts expended by the Program.

(Pub. L. 95–118, title XVI, §1602, as added Pub. L.

100–202, §101(e) [title I], Dec. 22, 1987, 101 Stat.

1329–131, 1329–134; amended Pub. L. 101–240, title

V, §541(d)(4), Dec. 19, 1989, 103 Stat. 2518.)

CODIFICATION

Section 1602 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.

AMENDMENTS

1989—Subsec. (d). Pub. L. 101–240 struck out subsec.

(d) which related to initial reporting requirements by

Secretary of the Treasury.

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 262p–4l of this

title.

§ 262p–2. Instructions to United States Executive

Directors for extension of credit

(a) International Bank for Reconstruction and

Development; International Development Association; access of poor to formal sources of

credit; identification and removal of barriers

to extension of credit generally and to provisions of credit to microenterprises

The Secretary of the Treasury shall instruct

the United States Executive Director of the

International Bank for Reconstruction and Development and the International Development

Association to initiate discussions with other

directors of such Bank or Association and to

propose that—

(1) in carrying on the activities of the Bank

or Association, the Bank or Association take

such steps as may be necessary to increase access for the poor people of a borrowing country

to formal sources of credit; and

(2) the Bank or Association include a requirement in all appropriate project and nonproject agreements, as a condition for assistance under such agreements, that the borrowing country identify and remove unreasonable

legal and regulatory barriers to—
§ 262p–3 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 44

1So in original. Probably should be ‘‘integration’’.

(A) the establishment or operation of organizations which extend credit; and

(B) the provision of credit to microenterprises for small scale economic activities.

(b) African Development Bank and Asian Development Bank; provision of credit to microenterprises

The Secretary of the Treasury shall instruct

the United States Executive Directors of the African Development Bank and the Asian Development Bank to initiate discussions with other directors of the respective banks and to propose

that each such bank—

(1) examine the Program for the Financing

of Small Projects of the Inter-American Development Bank and the steps taken by such

bank to link the Program to the mainstream

operation of the bank; and

(2) explore ways and means to establish

similar programs within the respective banks

to provide credit to microenterprises for small

scale economic activities.

(c) Annual reports to Congress; inclusion of

status of microenterprise credit promotion

activities

Each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies shall describe the

status of the microenterprise credit promotion

activities of each of the institutions referred to

in subsection (a) or (b) of this section.

(Pub. L. 95–118, title XVI, §1603, as added Pub. L.

100–202, §101(e) [title I], Dec. 22, 1987, 101 Stat.

1329–131, 1329–134.)

CODIFICATION

Section 1603 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.

DEFINITIONS

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

this section.

§ 262p–3. Participation of women in economic, social and policy development activities

(a) Congressional declaration of policy

Congress hereby declares that it is the policy

of the United States that multilateral development banks should—

(1) fully involve women in borrowing countries in the identification, planning, implementation, and evaluation of mainstream development activities financed by such banks;

(2) recognize and support women’s direct and

indirect roles in the economic development of

their countries and communities;

(3) recognize and support women’s direct and

indirect roles in the education and social development of, the maintenance of the health

of, and in the provision of adequate nutrition

for, family members and communities, especially children;

(4) work to remove legal and customary barriers which impede the full participation of

women in economic and social development,

such as lack of access to credit, property

rights, education, health care, and government services; and

(5) involve women’s groups in borrowing

countries in project identification and preparation in order to factor their assessments of

women’s economic and social needs into

project design.

(b) Instructions by Secretary of the Treasury to

United States Executive Directors

The Secretary of the Treasury shall instruct—

(1) the United States Executive Director of

the International Bank for Reconstruction and

Development and the International Development Association to support attempts to

strengthen the role of the Women in Development division in policy development, project

design and implementation, and evaluation;

and

(2) the United States Executive Directors of

the regional multilateral development banks

to support exploring the establishment of a

mechanism, or the strengthening of any existing mechanism, within each of the respective

banks, to advise, advocate, and promote the

full intergration1 of women in the planning,

design, implementation, and evaluation of

lending activities both in borrowing countries

and within the banks.

(c) Annual reports to Congress

Each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies shall describe the

actions taken by the multilateral development

banks to implement the policies established

under this section.

(Pub. L. 95–118, title XVI, §1604, as added Pub. L.

100–202, §101(e) [title I], Dec. 22, 1987, 101 Stat.

1329–131, 1329–134.)

CODIFICATION

Section 1604 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.

DEFINITIONS

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

this section.

§ 262p–4. Instructions to United States Executive

Directors; indigenous people in borrowing

country; determination of impact; protection

of rights; consultation

The Secretary of the Treasury shall instruct

the United States Executive Director of each

multilateral development bank to initiate discussions with other executive directors of the

respective bank and to propose that the bank

take such steps as may be necessary—

(1) to determine, at the time an initial feasibility study is conducted with respect to a

proposed project and to the fullest extent possible, the impact such project would have on

indigenous people in the borrowing country;

(2) to ensure compliance with loan

conditionalities relating to the protection of

the rights of indigenous people to lands and

resources; and

(3) to consult with indigenous people, and

nongovernmental organizations representing