Page 41 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 262o–1

1So in original. No par. (2) has been enacted.

tion of Articles VI, XVI, and XXIII of the

General Agreement on Tariffs and Trade;

and

(B) support from financial sources other

than multilateral development banks does

not accompany such financing; and

(2) to oppose financing by the respective

bank for production of a commodity, product,

or mineral for export which—

(A) is likely to be in surplus on world markets at the time such production begins; and

(B) when exported, is likely to cause injury to United States producers within the

meaning of Article 6 of the Agreement on Interpretation and Application of Articles VI,

XVI, and XXIII of the General Agreement on

Tariffs and Trade.

(Pub. L. 95–118, title XIV, §1403, as added Pub. L.

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

1329–131, 1329–134.)

CODIFICATION

Section 1403 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.

§ 262o. Negotiations concerning replenishment or

increase in capital; annual reports on implementation of lending policy goals

(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.

(Pub. L. 95–118, title XV, §1501, as added Pub. L.

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

1329–131, 1329–134.)

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.

DEFINITIONS

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

this section.

§ 262o–1. Military spending by recipient countries; military involvement in economies of

recipient countries

(a) Consideration of commitment to achieving

certain goals

(1) 1 In general

The Secretary of the Treasury shall instruct

the United States Executive Directors of the

international financial institutions (as defined

in section 262r(c)(2) of this title) to promote

growth in the international economy by taking into account, when considering whether to

support or oppose loan proposals at these institutions, the extent to which the recipient

government has demonstrated a commitment

to achieving the following goals:

(A) to provide accurate and complete data

on the annual expenditures and receipts of

the armed forces;
§ 262p TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 42

(B) to establish good and publicly accountable governance, including an end to excessive military involvement in the economy;

and

(C) to make substantial reductions in excessive military spending and forces.

(b) Steps to achieve goals required

The Secretary of the Treasury shall instruct

the United States Executive Directors of the

international financial institutions (as so defined) to promote a policy at each institution

under which—

(1) the respective institution monitors closely and, through regular policy consultations

with recipient governments, seeks to influence

the composition of public expenditure in favor

of funding growth and development priorities

and away from unproductive expenditure, including excessive military expenditures;

(2) the respective institution supports lending operations which assist efforts of recipient

governments to promote good governance, including public participation, and reduce military expenditures; and

(3) the allocation of resources and the extension of credit by the respective institution

takes into account the performance of recipient governments in the areas of good governance, ending excessive military involvement

in the economy and reducing excessive military expenditures.

(Pub. L. 95–118, title XV, §1502, as added Pub. L.

103–306, title V, §526(d), Aug. 23, 1994, 108 Stat.

1633.)

DEFINITIONS

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

this section.

§ 262p. Impact adjustment lending programs

(a) Establishment of guidelines; impact statements

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 the respective institutions and to

propose that—

(1) guidelines be established which reflect

clear and tangible concern for the impact adjustment lending programs, and the activities

in support of which such lending is made, have

and will have on human welfare; and

(2) impact statements be required which assess the effect an adjustment lending program,

and the activities in support of which such

lending is made, will have on the poor of the

country to which such lending is made.

(b) Proposed contents of impact statements

In the discussions referred to in subsection (a)

of this section with respect to the impact statement described in paragraph (2) of such subsection, the United States Executive Director

should propose that such impact statements—

(1) specify what the projected effects of the

adjustment loan will be on the poor;

(2) explain what procedures have been or will

be taken to strengthen the in-country capacity of the borrower to—

(A) monitor nutrition levels in a timely

manner; and

(B) measure the impact an adjustment

loan, and the policies and activities in support of which such loan is made, has on the

living standards of the country’s population,

especially the poorest; and

(3) indicate specifically what steps the borrower will take to—

(A) mitigate any adverse effect the policies

and activities in support of which an adjustment loan is made are expected to have on

the living standards of the poor (including

the use of the proceeds of any adjustment

loan, project aid, or other compensatory

measure to mitigate such effect); and

(B) maximize the extent of the participation of the poor in the economic benefits resulting from an adjustment loan.

(c) Report to member governments by United

States Executive Director of International

Bank for Reconstruction and Development

and by International Development Association

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 request the management of the

respective institutions to prepare a report for

distribution to member governments no later

than June 30, 1988, that—

(1) assesses the impact on the poor of structural adjustment in countries to which structural adjustment lending has been made; and

(2) specifies the steps that have been or will

be taken by the respective institution to—

(A) mitigate any adverse effect of adjustment lending, and the activities in support

of which such lending is made, on the living

standards of the poor in the countries to

which such loans are made; and

(B) ensure the participation of the poor in

the economic benefits resulting from adjustment lending and the activities in support of

which such lending is made.

(d) ‘‘Adjustment lending’’ defined

For purposes of this section and section 262m–1

of this title, the term ‘‘adjustment lending’’

means nonproject lending in support of structural macroeconomic reforms or sectoral economic reform.

(Pub. L. 95–118, title XVI, §1601, as added Pub. L.

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

1329–131, 1329–134.)

CODIFICATION

Section 1601 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.