FY 2009 FY 2010 FY 2011 

Enacted Enacted President’s Budget $ Change % Change 

$1,493,802 $2,043,670 $2,957,176 $913,506 44.7% 

International Development Association 1,115,000 1,262,500 1,285,000 22,500 2% 

Multilateral Food Security Fund 408,400 408,400 100% 

Climate Investment Funds 375,000 635,000 260,000 69% 

 Clean Technology Fund 300,000 400,000 100,000 33%

 Strategic Climate Funds 75,000 235,000 160,000 213%

 Pilot Program for Climate Resilience 55,000 90,000 

Forest Investment Program 20,000 95,000 

Scaling-Up Renewable Energy Program 50,000 

Global Environment Facility 80,000 86,500 175,000 88,500 102% 

African Development Fund 150,000 155,000 155,940 940 1% 

African Development Bank 802 

Asian Development Fund 105,000 105,000 115,250 10,250 10% 

Asian Development Bank 106,586 106,586 100% 

International Fund for Agricultural 

Development 18,000 30,000 30,000 0 0% 

Inter-American Development Bank: 29,670 46,000 16,330 55% 

 Multilateral Investment Fund 25,000 25,000 25,000 0 0%

 Inter-American Investment Corporation 4,670 21,000 16,330 350% 

Debt Restructuring $60,000 $60,000 $70,000 $10,000 16.7% 

Bilateral Debt Relief/HIPC Trust Fund 40,000 40,000 50,000 10,000 25% 

Tropical Forest Conservation Act 20,000 20,000 20,000 0 0% 

Treasury Technical Assistance $25,000 $25,000 $38,000 $13,000 52.0% 

Total Program Level $1,578,802 $2,128,670 $3,065,176 $936,506 44.0% 

Appropriations 

International Financial Institutions 

Treasury International Programs 

Program Summary by Appropriations Account 

(Dollars in Thousands) 

Explanation of Request 

President Obama has called for multilateral 

solutions to today’s global challenges, 

including economic governance, development, 

climate change, food security, and 

transnational threats. Treasury is leading efforts 

to support the President’s agenda through 

specific Department activities: 

•	 Economic governance: Treasury leads 

the Administration’s engagement with 

the International Financial Institutions 

(IFIs) to address critical issues 

regarding economic governance and 

multilateral support of broader 

economic priorities. 

•	 Development: Treasury also leads the 

Administration’s engagement with the 

Multilateral Development Banks 

(MDBs) to address development 

priorities. 

•	 Climate change: Treasury is 

supporting the President’s recent 

climate commitments in Copenhagen 

through funding of international efforts 

to combat global climate change and to 

help developing countries respond to 

its impacts. 

•	 Food security: As part of the 

President’s commitment to address 

global hunger and food security, 

Treasury has designed and launched a 

new multi-donor trust fund to provide 

Department of the Treasury - Budget in Brief FY 2011 Page 113
(Dollars in Thousands) 

International Financial Technical Debt 

Institutions Assistance Restructuring Total 

FY 2009 Enacted $1,493,802 $25,000 $60,000 $1,578,802 

FY 2010 Enacted $2,043,670 $25,000 $60,000 $2,128,670 

Increases/(Decreases) 

FY 2011 President's Budget Request $2,957,176 

913,506 13,000 10,000 936,506 

$38,000 $70,000 $3,065,176 

financial support for poor countries 

committed to addressing their internal 

food security needs. 

•	 Transnational threats: Treasury’s Office 

of Technical Assistance helps 

strengthen economic capacity of 

countries around the world, including 

many countries of vital national 

security interest to the United States. 

Total resources required to support Treasury 

International Assistance Programs for FY 2011 

are $3.065 billion, including contributions to 

the International Financial Institutions (IFIs) of 

$2.957 billion, $70.0 million for Debt 

Restructuring, and $38.0 million for Treasury's 

International Affairs Technical Assistance 

Programs. 

International Programs FY 2011 Budget Highlights 

Purpose of Program 

Treasury’s International Programs promote 

economic growth and poverty reduction in 

developing countries through U.S. 

participation in the multilateral development 

banks (MDBs), provide debt relief to poor and 

heavily indebted countries that have 

committed to economic reform and poverty 

reduction, and promote economic growth by 

working directly with governments around the 

world to help them strengthen capacity of their 

core institutions. 

FY 2011 Program Request 

International Financial Institutions (IFIs) 

($2,957,175,848) 

The FY 2011 Budget requests $2.957 billion for 

U.S. contributions to the multilateral 

development banks (MDBs), which 

include$1.838 billion for scheduled annual 

commitments to these institutions and $76 

million to pay a portion of outstanding U.S. 

arrears, which total just under $1 billion. The 

budget also includes $635 million towards 

international efforts to combat global climate 

change and to help developing countries 

respond to its impacts and $408.4 million 

towards a new multi-donor trust fund designed 

to help developing countries improve food 

security and reduce poverty, which will allow 

for an initial contribution of $475 million 

when combined with 2010 funds. 

International Development Association 

(IDA) ($1,285,000,000) 

The request of $1.285 billion includes the 

third installment of the U.S. three-year 

commitment to the IDA15 replenishment 

($1.235 billion) and $50 million to pay 

down a portion of arrears to IDA. Through 

IDA, the World Bank supports 78 of the 

world’s poorest countries by providing the 

largest source of interest-free loans, grants, 

and debt relief of any multilateral 

development institution. Major IDA15 

initiatives and policy reforms include: an 

expanded results measurement system; 

Department of the Treasury - Budget in Brief FY 2011 Page 114
improvements to World Bank engagement in 

fragile and post-conflict states; measures to 

further improve debt sustainability; and 

progress towards greater transparency and 

accountability at the institution. IDA funding is 

also necessary to meet the U.S. share of the 

costs of multilateral debt relief for the poorest 

indebted countries through the Multilateral 

Debt Relief Initiative (MDRI). 

Multilateral Food Security Fund 

($408,400,000) 

The request provides $408.4 million for the 

Multilateral Food Security Fund, also known as 

the Global Agriculture and Food Security 

Program (GAFSP), a new multi-donor trust 

fund designed to help developing countries 

improve food security and reduce poverty. An 

important component of the Administration’s 

Global Hunger and Food Security Initiative, the 

fund will be administered by the World Bank 

and was developed through the leadership of 

the United States, Canada and Spain. GAFSP 

will make medium to long-term investments 

though a variety of international financial 

institutions in five key areas critical to a 

comprehensive approach to food security: 

raising agricultural productivity; linking 

farmers to markets; reducing risk and 

vulnerability; improving non-farm rural 

livelihoods; and technical assistance, institution 

building, and capacity development. GAFSP 

will offer financing through a public sector and 

a private sector window; for both windows, 

priority will be given to proposals that leverage 

resources from other domestic and international 

partners, both public and private. GAFSP will 

leverage the resources and expertise of the 

World Bank, International Fund for 

Agricultural Development (IFAD) and other 

multilateral institutions that complement and 

reinforce the efforts of our bilateral food 

security programs. 

Climate Investment Funds (CIF) 

($635,000,000) 

The request provides $635 million for the 

Climate Investment Funds, two multilateral 

trust funds. $400 million is for the Clean 

Technology Fund (CTF), an effort to reduce 

the growth of greenhouse gas emissions in 

emerging economies by catalyzing largescale private sector investments through 

financing the additional costs of 

commercially available cleaner technologies 

over dirtier, cheaper alternatives. The 

remaining $235 million is for the Strategic 

Climate Fund (SCF) suite of three programs 

which pilot innovative approaches and 

scaled-up activities aimed at specific 

climate change-related challenges in 

developing countries. The SCF is 

comprised of the Pilot Program for Climate 

Resilience (PPCR), the Forest Investment 

Program (FIP), and the Program for 

Scaling-Up Renewable Energy in Low 

Income Countries (SREP). The PPCR will 

help very poor countries better prepare for 

the unavoidable effects of climate change 

through innovative development plans, 

strategies, and projects. The FIP will 

reduce deforestation in developing countries 

through improved governance and forest 

management, and by addressing the drivers 

of deforestation. The SREP will 

demonstrate the economic, social and 

environmental viability of low carbon 

development pathways in very poor 

countries. 

Global Environment Facility (GEF) 

($175,000,000) 

In 2010, donor governments will agree to 

the fifth replenishment of the GEF. The 

total amount for the fifth replenishment is 

expected by March 2010. The U.S. 

commitment will total $680 million, to be 

paid in four equal installments of $170 

million from FY 2011 through FY 2014. 

During the replenishment negotiations, the 

Department of the Treasury - Budget in Brief FY 2011 Page 115
United States has so far achieved important 

policy reforms to improve the GEF's overall 

effectiveness, particularly with regard to 

country owned business plans for GEF funding 

and resource allocation. The FY 2011 request 

includes $170 million for the first installment of 

GEF5 and $5 million for a portion of U.S. 

arrears to the GEF, for a total request of $175 

million. 

African Development Fund (AfDF) 

($155,940,000) 

The request of $155.9 million includes the third 

of three installments of the U.S. contribution to 

the AfDF11 replenishment. The African 

Development Fund (AfDF) is the African 

Development Bank’s concessional window and 

serves 40 of the poorest countries in Africa, by 

providing highly concessional loans, grants, and 

debt relief. Funding of the U.S. AfDF11 

commitment is critical to ensuring support for 

the poorest African countries to counter the 

impact of the global financial crisis. U.S. 

financing also supports the implementation of 

reforms championed by the United States 

during the replenishment process, such as the 

performance-based allocation system and the 

results-measuring system. AfDF11 also created 

a Fragile States Facility to provide additional 

assistance to post-conflict countries to 

accelerate the transition process from conflict 

and decline to stability and growth. In addition, 

AfDF funding is necessary to meet the U.S. 

share of the costs of multilateral debt relief for 

the poorest indebted countries through the 

MDRI. 

Asian Development Fund (AsDF) 

($115,250,000) 

The request of $115.3 million is for the second 

of four installments of the U.S. contribution to 

the ninth replenishment of the Asian 

Development Fund (AsDF10). The AsDF, the 

Asian Development Bank’s (AsDB) 

concessional window, provides development 

financing for investments in infrastructure, 

health, education, environment, and privatesector development, as well as policy advice 

to the poorest countries in the Asia-Pacific 

region. In the AsDF10 Agreement, the 

United States secured a number of 

important policy reforms, including: the 

completion of a grants framework through 

which grants will comprise 25 percent or 

more of assistance; a significant 

improvement in the results framework 

governing AsDF and AsDB operations; 

strengthened anti-corruption practices and 

safeguards; and increased transparency. 

Asian Development Bank (AsDB) 

($106,585,848) 

The request of $106.6 million is the first of 

five paid-in capital subscriptions of the U.S. 

subscription to the fifth General Capital 

Increase (GCI V) of the Asian Development 

Bank. The GCI increases the capitalization 

of the AsDB’s Ordinary Capital Resources 

(OCR) window, which provides marketlinked financing to developing member 

countries of the AsDB. The OCR, 

considered the hard-loan window, provides 

development financing for investments in 

infrastructure, energy, transport, 

environment, private-sector development, 

and public sector management. In the GCI 

V agreement, the United States secured a 

number of important policy reforms, 

including: improvements in the 

environmental safeguards, strengthening 

risk management and anti-corruption, and 

increasing resources to the poorest. 

International Fund for Agricultural 

Development (IFAD) ($30,000,000) 

The request of $30 million will cover the 

second of three payments of the U.S. 

contribution to the International Fund for 

Agricultural Development’s (IFAD’s) 

eighth replenishment, which the U.S. 

committed to in February 2009. IFAD is 

the only multilateral development 

Department of the Treasury - Budget in Brief FY 2011 Page 116
institution focused exclusively on reducing 

rural poverty and hunger through improving 

agricultural productivity. Because of its 

mission and expertise, IFAD plays a key role in 

supporting the renewed focus on agricultural 

development and food security. IFAD8 makes 

key commitments to a number of U.S. 

priorities: a strengthened results measurement 

framework; human resources reform; a renewed 

performance-based allocation system; and a 

commitment to developing a comprehensive 

environmental strategy that will help poor 

farmers adapt to the likely impacts of climate 

change. 

Multilateral Investment Fund (MIF) 

($25,000,000) 

The request of $25.0 million is for the fourth 

installment of the U.S. contribution to the first 

replenishment of the MIF, which the U.S. 

committed to in April 2005. The MIF works 

directly with private sector and public sector 

partners to strengthen the environment for 

business, build the capabilities and skills 

standards of the workforce, and broaden the 

economic participation of smaller enterprises. 

MIF projects incorporate a significant degree of 

counterpart financing, with a goal of having 

50% of project costs financed by local 

counterpart contributions. The MIF is 

providing highly-focused support for private 

sector development in Latin America and the 

Caribbean through the provision of technical 

assistance on regulatory and legal reforms, retraining of the workforce, and increasing 

productivity and competitiveness of small 

businesses and micro-enterprises. 

Inter-American Investment Corporation (IIC) 

($21,000,000) 

The request of $21.0 million will clear 50% of 

current U.S. arrears to the IIC. These arrears 

must be paid by 2010 in order for the United 

States to not lose capital shares at the IIC. Any 

shares lost by the United States likely would be 

purchased by other shareholder countries. The 

IIC promotes private small and mediumsize enterprises (SMEs) in Latin America 

and the Caribbean. Through a combination 

of direct loans to and equity investments in 

individual companies, lending through 

private local banks, and participation in 

regional equity funds, the IIC helps SMEs 

obtain affordable capital to start up, expand, 

or modernize their operations. 

Debt Restructuring ($70,000,000 from 

direct appropriations) 

The request of $70 million is for the cost of 

debt restructuring programs, including 

bilateral Heavily Indebted Poor Countries 

(HIPC) Initiative debt reduction, the HIPC 

Trust Fund, and the Tropical Forest 

Conservation Act (TFCA). The enhanced 

HIPC Initiative was launched to provide 

deeper, broader, and faster debt reduction 

for the poor, heavily-indebted countries that 

have made a real commitment to economic 

reform and poverty reduction. For the 

poorest and most heavily indebted 

countries, the United States will continue 

support for bilateral debt relief though the 

Paris Club of official creditors and the 

enhanced HIPC Initiative. The request 

includes a total of $50 million in funding 

for the cost of debt restructuring programs, 

including bilateral HIPC and poorest 

country debt reduction and the HIPC Trust 

Fund. Under the enhanced HIPC Initiative, 

funding is currently needed to help satisfy 

the $75.4 million outstanding U.S. pledge to 

the HIPC Trust Fund for debt relief from 

the regional development banks. Twenty 

million dollars is requested for the TFCA 

which authorizes debt relief for low and 

middle-income countries to support 

conservation of tropical forests. Under the 

program, treated debt is “redirected” to 

enable a forest fund in the beneficiary 

country to make grants to local NGOs and 

other entities engaged in forest 

conservation. The United States uses 

Department of the Treasury - Budget in Brief FY 2011 Page 117
appropriated funds to pay for the budget cost of 

this debt reduction/redirection. 

International Affairs Technical Assistance 

($38,000,000 from direct appropriations) 

The request for Treasury’s Office of Technical 

Assistance (OTA) is for the International 

Affairs Technical Assistance Program, which 

provides highly experienced financial advisors 

to reform-minded developing countries, 

transitional economies, and nations recovering 

from conflict. The program supports economic 

policy and financial management reforms, 

focusing on five core areas: revenue policy and 

administration; government debt issuance 

and management; budget and financial 

accountability; banking and financial 

institutions; and economic crimes. The FY 

2011 budget request will support approximately 

80 technical assistance projects worldwide. The 

proposed investment acknowledges OTA’s 

critical role in the Administration’s 

international development and security agenda 

and will allow OTA to pursue several important 

objectives in FY 2011. OTA will broaden and 

deepen its engagements in support of U.S. and 

Treasury priorities and continue building 

capacity to counter terrorist finance and 

financial crimes; encourage investment, growth 

and job creation through development of capital 

markets and infrastructure finance; and promote 

increased access to finance for small- and 

medium-sized enterprises. 

The proposed budget supports OTA’s work to 

strengthen financial infrastructure and combat 

terrorist financing in Iraq, and other countries 

of vital national security interest to the U.S. 

where long-term stability will depend on strong 

financial governance. By providing increased 

funding directly to Treasury, OTA will be wellpositioned to continue this important work and 

to respond to new and emerging national 

security challenges. 

Description of Performance 

International Financial Institutions: 

Responding to crisis and the complex 

challenges of the 21st century 

The IFIs have been “first responders” in the 

global response to the financial crisis. At 

the same time, these institutions are 

responding to increasing calls that they 

deliver public goods, such as intervention in 

fragile states and efforts to help developing 

countries mitigate or adapt to climate 

change. Full funding of the FY 2011 

request for the MDBs is necessary to help 

ensure that they can continue to serve these 

critical functions. 

In April 2009, President Obama and other 

G20 leaders called on the World Bank and 

the regional development banks to 

dramatically increase their financial support 

to the developing world. The multilateral 

development banks (MDBs) successfully 

responded with $100 billion in additional 

lending in a matter of months. This 

important financing has helped to both 

forestall further spread of the crisis and to 

mitigate the impact in hard-hit regions like 

Eastern Europe. 

In addition, the MDBs are well positioned 

to assist us in addressing complex, urgent 

challenges of the 21st century, including 

climate change, water and food scarcities 

and the risk of pandemics. For example, 

environmental lending - including climate 

change, clean energy, energy efficiency, 

natural resources management, and 

biodiversity - at the Asian Development 

Bank increased by more than 65% in each 

of the last two years, and the World Bank 

has pledged to scale up agriculture lending 

by as much as 100% over the next three 

years. 

Department of the Treasury - Budget in Brief FY 2011 Page 118
Reforms within International Financial 

Institutions 

Through U.S. leadership in the IFI 

replenishment negotiations, key policy reforms 

were initiated, reinforced and extended in the 

international financial institutions. In recent 

years, these reforms included: 

•	 Increased grant financing for the poorest 

countries at IDA, the AfDF, AsDF and 

other MDBs; 

•	 Greater commitment to transfers of IFI net 

income to support lending to the poorest 

countries; 

•	 Development of robust results-based 

management systems to incorporate 

measurable performance goals and 

demonstrate positive results on the ground; 

•	 Increased transparency and accountability; 

•	 Efforts to reduce corruption at institutional, 

project, country and regional levels. 

Results Measurement 

The MDBs have worked to develop a new 

culture dedicated to managing for development 

results. Treasury has been a strong proponent 

of this agenda, which will increase the 

accountability and effectiveness of MDB 

development efforts. We have seen substantial 

progress in recent years, with the MDBs laying 

out targets for their achievements at the project, 

country and institutional level, such that 

Treasury believes that over 90% of 2009 MDB 

projects include a framework that will be 

adequate to show the project’s development 

results. In the last year, the MDBs have taken a 

major step forward with their efforts to 

harmonize their sector-level results indicators, 

which will allow for comparison across MDBs 

of accomplishments in sectors as diverse public 

health, transportation and education. 

Transparency and Fighting Corruption 

Through U.S. leadership, the MDBs have 

continued strong efforts to improve 

transparency, including disclosure of MDB 

documents and processes, and to fight 

corruption at the project, country and 

institutional levels. For example, the World 

Bank recently revised its disclosure policy. 

This policy sets a new benchmark for 

transparency among the IFIs. In addition, 

we have strongly supported the World 

Bank’s implementation of the 

recommendations made in the 2007 Volcker 

Panel Report on the Bank’s Department of 

Institutional Integrity. 

Debt Restructuring 

The Enhanced Heavily Indebted Poor 

Country (HIPC) Initiative continues to 

make more resources available to poor, 

heavily indebted countries, while providing 

a framework for growth enhancing reforms. 

Under the HIPC Initiative, 35 countries had 

demonstrated sufficient progress on 

economic reform and commitment to 

poverty reduction to reach their Decision 

Points as of the end of FY 2009. These 

countries benefit from debt relief that, 

together with MDRI, will lower their stock 

of debt by over 80%, freeing resources to 

support poverty reduction and economic 

growth. In 2008, poverty-reducing 

expenditures for the Decision Point HIPCs 

(as of FY 2009) were estimated to be over 

eight times as large as debt service 

payments, compared to only two times as 

large in 2001. 

Under the Tropical Forest Conservation Act 

(TFCA), a total of 15 agreements have been 

signed with 13 countries, generating more 

than $218 million over time for tropical 

forest conservation and providing leadingedge experience in financing of forest 

protection, which will be needed at large 

scale to address climate change. The TFCA 

debt swap mechanism has also developed a 

unique public/private partnership in which 

environmental NGOs provide additional 

funds for debt reduction, increasing the size 

of individual agreements, and contributing 

Department of the Treasury - Budget in Brief FY 2011 Page 119
 

additional expertise in the management of 

resulting programs. Nine of the 15 TFCA 

agreements have utilized this public/private 

mechanism. 

Technical Assistance 

The Office of Technical Assistance (OTA) 

provides financial technical assistance 

worldwide to build the financial management 

capacity of developing and transition countries. 

OTA partners with finance ministries, central 

banks and law enforcement agencies to build 

the essential financial functions of well-run 

states: systems to collect revenues, implement 

national budgets, manage public debt, oversee 

financial institutions, and combat economic 

crime. OTA’s work complements assistance 

provided by the international financial 

institutions and US bilateral assistance. By 

strengthening the financial management 

capacity of countries receiving, for example, 

debt relief, OTA contributes to the broader goal 

of aid effectiveness. Finally, OTA assistance 

indirectly supports the private sector by 

strengthening the financial underpinnings of 

public services, such as power and 

infrastructure, upon which private companies 

depend. 

Examples of innovative programming by OTA 

in FY 2009: 

In Guatemala, OTA provides a broad range of 

financial technical assistance to strengthen the 

transparency of budget formulation and 

execution, to improve the management of 

government debt, and to increase revenue 

collection. Debt advisors work to create a new 

public debt law, to introduce standardized 

fungible dematerialized government securities, 

enhance auction calendars, eliminate tax 

distortions, develop strategies for retail 

distribution of government securities, and 

strengthen government and central bank 

communications with the market. 

In 2009, OTA created the Infrastructure 

Finance Experts Corps (IFEC), an initiative 

focused on strengthening the capacity of 

Latin American and Caribbean governments 

to implement Public-Private Partnerships 

and other means of financing infrastructure 

projects. Specialists from OTA, in 

collaboration with the Government of Chile, 

provide technical assistance to promote 

well-designed and fiscally sound 

infrastructure projects. The Government of 

Costa Rica is hosting the pilot project for 

the IFEC program, which is focused on 

helping the Ministry of Finance, along with 

the Ministry of Public Works and 

Transportation and the National 

Concessions Council, to finance a major 

international airport, a primary commercial 

seaport, and light rail and toll road projects 

in the capital San Jose. 

OTA’s Economic Crimes efforts in 

Afghanistan have included developing a 

financial intelligence unit (FIU) staffed and 

trained to develop, populate, and access a 

database that contains reports on large cash 

transactions and suspicious activities from 

financial service providers. FIU analysis of 

information in this database supports and is 

shared with law enforcement in Afghanistan 

and strengthens the regulatory regime to 

conform to international norms for 

preventing money laundering and terrorist 

financing. OTA efforts in Afghanistan have 

resulted in greater regional and international 

information exchange and cooperation 

including membership in key anti-money 

laundering groups, an observership by a 

main financial task force, and Memoranda 

of Understanding signed with over one 

dozen financial intelligence units around the 

world. 

Department of the Treasury - Budget in Brief FY 2011 Page 120