III

106TH CONGRESS

2D SESSION S. CON. RES. 136

Expressing the sense of Congress regarding the importance of bringing transparency, accountability, and effectiveness to the World Bank and its

programs and projects.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 19, 2000

Mr. CRAPO (for himself and Mr. ENZI) submitted the following concurrent

resolution; which was referred to the Committee on Foreign Relations

CONCURRENT RESOLUTION

Expressing the sense of Congress regarding the importance

of bringing transparency, accountability, and effectiveness to the World Bank and its programs and projects.

Whereas the United States is the single largest shareholder

of the International Bank for Reconstruction and Development and the International Development Association

(in this concurrent resolution referred to as the ‘‘World

Bank’’);

Whereas recent reports by the General Accounting Office and

others raise serious questions about management at the

World Bank, corruption involving World Bank programs

and projects, and the lack of effectiveness of World Bank

programs and projects;
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•SCON 136 IS

Whereas the estimated failure rate of World Bank programs

and projects based on the World Bank’s data is greater

than 50 percent, as determined at the time of the final

loan disbursement, and the estimated failure rate rises to

65 to 70 percent in the most impoverished nations;

Whereas the United States has an obligation to the American

people to ensure that the hard-earned dollars they pay in

taxes to the Federal Government are, when made available to the World Bank, being spent efficiently and as

they were intended to be spent;

Whereas the United States has a duty to ensure that the

policies and practices of the World Bank are consistent

with the laws and objectives of the United States; and

Whereas the World Bank will continue to seek financial contributions from the United States to fund its programs

and projects: Now, therefore, be it

1 Resolved by the Senate (the House of Representatives

2 concurring),

3 SECTION 1. SENSE OF CONGRESS ON INDEPENDENT PER4 FORMANCE AUDITS AND EVALUATIONS OF

5 WORLD BANK PROGRAMS AND PROJECTS.

6 (a) IN GENERAL.—It is the sense of Congress that—

7 (1) the World Bank should publicly commit to

8 execute within one year performance audits and a

9 complete performance evaluation of the effectiveness

10 of its programs and projects by independent private

11 sector firms;
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1 (2) the individual program and project audits

2 and the complete performance evaluation conducted

3 by the World Bank should be published and meet

4 the requirements of subsection (b);

5 (3) the audits and complete performance eval6 uation of the programs and projects, together with

7 the General Accounting Office review of these audits

8 and evaluations, would help bring necessary trans9 parency, accountability, and effectiveness to the

10 World Bank and its programs and projects; and

11 (4) the health and well-being of people around

12 the world would be aided by the World Bank’s ef13 forts to ensure that its resources are properly and

14 appropriately directed to those truly in need.

15 (b) REQUIREMENTS.—The requirements referred to

16 in subsection (a)(2) are the following:

17 (1) One-third of the number of the World

18 Bank’s programs and projects should be audited at

19 the location of the program or project between four

20 and six years after the final disbursement of World

21 Bank funds with respect to those programs and

22 projects.

23 (2) Audited programs and projects should be

24 representative, by sector and recipient country, of

25 the World Bank’s programs and projects.
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1 (3) Results of the individual program and

2 project audits should be compiled into a complete

3 performance evaluation that examines whether the

4 funds loaned by the World Bank are used in a man5 ner that complies with the conditions of the loans

6 and analyzes the direct and indirect costs and bene7 fits of each program or project audited.

8 (4) The individual program and project audits

9 and the complete performance evaluation of pro10 grams and projects should be performed every 3

11 years and should examine those programs and

12 projects that have been completed since the submis13 sion of the last evaluation.

14 (5) Not later than six months after the date of

15 completion of the complete performance evaluation,

16 the General Accounting Office should have complete

17 and unfettered access to the auditors, the individual

18 program and project audits, and the complete per19 formance evaluation and should review and report to

20 Congress on the results and methodologies of the au21 dits and the evaluation, the independence and com22 petence of the auditors, and the appropriateness,

23 thoroughness, and quality of the audit and evalua24 tion procedures.

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