JUSTIFICATION FOR APPROPRIATIONS

FY 2014 BUDGET REQUEST

U . S . D E PA R T M E N T O F T H E T R E A S U R Y 

INTERNATIONAL PROGRAMS
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Table of Contents

Treasury International Programs

Justification for Appropriations

FY 2014 Budget Request

Letter from the Secretary ...................................................................................................................................1

Executive Summary ..............................................................................................................................................3

Summary Tables ....................................................................................................................................................7

Multilateral Development Banks.....................................................................................................................9

World Bank Group............................................................................................................................................................. 9

International Development Association.............................................................................................................. 9

International Bank for Reconstruction and Development.........................................................................10

Inter-American Development Bank Group............................................................................................................14

Inter-American Development Bank ....................................................................................................................14

Multilateral Investment Fund................................................................................................................................16

African Development Bank Group.............................................................................................................................19

African Development Fund.....................................................................................................................................19

African Development Bank .....................................................................................................................................20

Asian Development Bank Group................................................................................................................................22

Asian Development Fund.........................................................................................................................................22

Asian Development Bank.........................................................................................................................................23

Food Security ....................................................................................................................................................... 27

Global Agriculture and Food Security Program .............................................................................................27

International Fund for Agricultural Development........................................................................................29

World Bank Environmental Trust Funds................................................................................................... 31

Clean Technology Fund ............................................................................................................................................31

Strategic Climate Fund..............................................................................................................................................33

Global Environment Facility...................................................................................................................................36

Debt Relief............................................................................................................................................................. 39

Multilateral Debt Relief Initiative.........................................................................................................................39

Technical Assistance ......................................................................................................................................... 41

Office of Technical Assistance................................................................................................................................41

Transition Fund .................................................................................................................................................. 43

International Monetary Programs ............................................................................................................... 45

International Monetary Fund......................................................................................................................................45
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DEPARTMENT OF THE TREASURY 

WASHINGTON, D.C. 

Dear Member: 

On behalf of President Obama, it is my pleasure to submit the Congressional Budget Justification 

for the Department of the Treasury’s Fiscal Year 2014 International Programs. 

Today, U.S. leadership in the multilateral development banks (MDBs) remains strong thanks to 

the bipartisan support from Congress for the recent general capital increases and replenishments. 

Investments in multilateral institutions remain a cost-effective way to promote our national 

security, support the next generation of export markets, and address key global challenges like 

environmental degradation and food insecurity, while fostering private sector development and 

entrepreneurship. 

Treasury’s FY 2014 Budget is primarily a continuation of previously negotiated and authorized 

multi-year MDB commitments for capital increases and replenishments based on the bipartisan 

actions taken by Congress in support of the MDBs in FY 2012. The Budget also includes arrears 

payments, which are an important element of Treasury’s multi-year approach to the MDBs. 

Our support for the MDBs has strengthened U.S. leadership of these institutions, enabling us to 

leverage critical reforms to improve accountability, transparency, and development effectiveness. 

United States investments in the MDBs account for roughly $3 billion of the Administration’s 

Function 150 Budget, yet they leverage nearly $100 billion in annual development commitments. 

As an historical example, the U.S. capital increase commitment of $420 million made to the 

World Bank under the Reagan Administration helped support $325 billion in lending over the 

subsequent two decades. 

As we seek to protect our recovery and increase exports, our support of the MDBs is critical. 

These institutions are helping to nurture the next generation of emerging markets as they become 

more vital trading partners for the United States. Emerging markets and developing countries 

accounted for nearly 60 percent of U.S. exports in 2012—up from 45 percent in 2000—and the 

MDBs are uniquely equipped to provide the scale of investment necessary to sustain further 

global growth and safeguard global public goods. 

Our request includes continued funding for food security to fund country-led, evidence-based 

agriculture development strategies and projects in the world’s poorest countries. For example, 

investments made by the Global Agriculture and Food Security Program at the World Bank 

continue to make major strides in improving agricultural development in countries seeking to 

reduce food insecurity. In 18 countries, smallholder farmers have seen significant increases in 

productivity with corresponding income gains. 

In addition, Treasury’s Budget requests funding for the environmental trust funds, which support 

United States economic, security, and environmental objectives to reduce instability and conflict 

caused by resource scarcity; reduce harmful, long-lived chemicals, such as mercury in our air 

and water; conserve global biodiversity; and develop markets for the export of U.S. 

environmental technologies. 
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Our request also seeks funding for Treasury’s Office of Technical Assistance, which makes 

critical, targeted investments in strategically important areas such as the Middle East and North 

Africa and Burma. 

Additionally, the request includes funding for the new Middle East and North Africa Transition 

Fund, a multi-donor fund administered by the World Bank. This fund is leveraging contributions 

from G-8 and Gulf countries to support policy reforms in Arab transition countries to strengthen 

democracy and create more open economies. 

Finally, the request seeks to implement the 2010 International Monetary Fund (IMF) agreement. 

In 2010, G-20 Leaders and the IMF membership decided on a set of quota and governance 

reforms designed to enhance IMF effectiveness. The United States successfully achieved its 

negotiating priorities in this process: (1) a United States quota increase with a simultaneous and 

equivalent roll back in our participation in the IMF’s New Arrangements to Borrow; and, (2) 

preservation of the unique U.S. veto in the IMF. Legislation is required to preserve United 

States leadership in the IMF. 

These investments continue to represent outstanding value for money. As we continue to seek 

the best returns for taxpayer resources, these commitments are sound investments that preserve 

U.S. leadership and advance U.S. economic growth and national security while furthering efforts 

to combat poverty and improve environmental and food security. 

I look forward to working with you on this important request. 

Sincerely, 

Jacob J. Lew 

Secretary of the Treasury 
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Executive Summary 

Multilateral Development Banks

The FY 2014 Request for the multilateral development banks (MDBs) is comprised almost 

entirely of annual commitments negotiated and authorized in previous years. These include a 

continuation of the capital increases at the International Bank for Reconstruction and 

Development (IBRD), the Inter-American Development Bank (IDB), the African Development 

Bank (AfDB), and the Asian Development Bank (AsDB). Investments in multilateral 

institutions remain a cost-effective way to promote U.S. national security, support broad-based

and sustainable economic growth, and address key global challenges like environmental 

degradation, while fostering private sector development and entrepreneurship. Continued 

support preserves U.S. leadership at the MDBs—leadership that has greatly benefited both the 

MDBs and U.S. taxpayers for more than 60 years. 

Treasury’s Request includes funding for the concessional windows at the MDBs that support the 

world’s poorest countries. MDB concessional facilities are an important source of financing for 

development needs in many of the world’s most fragile and post-conflict states. The projects 

they support help save lives by combatting extreme hunger and poverty while promoting global 

stability, prosperity, and private sector growth. The FY 2014 Request includes funding for the 

third and final installment of the sixteenth replenishment of the International Development 

Association (IDA) and the third and final installment of the twelfth replenishment of African 

Development Fund (AfDF). In addition, Treasury is requesting funding that will both meet the 

U.S. commitment to the first installment of the tenth replenishment of the Asian Development 

Fund (AsDF) and clear a portion of U.S. arrears at the AsDF, which currently total over $326 

million. Treasury’s Request also includes $6.3 million to clear a portion of the outstanding U.S. 

arrears to the Multilateral Investment Fund (MIF). 

Food Security

The FY 2014 Request includes $135 million for a contribution to the Global Agriculture and 

Food Security Program (GAFSP). Investments made by GAFSP continue to make major strides 

toward improving agricultural outcomes in countries seeking to reduce food insecurity. In 18 

countries, smallholder farmers have seen significant increases in productivity on a per hectare 

basis with corresponding income gains. GAFSP is responsive to country needs and is aligned 

with their own home grown strategies. It fosters cooperation among donors and allocates 

resources based on results.

The food security budget also includes $30 million for the second of three installments for the 

ninth replenishment of the International Fund for Agricultural Development (IFAD), the only 

global development finance institution solely dedicated to improving food security for the rural 

poor. This request is equivalent to our annual commitment under the previous replenishment, 

made in 2008.

Environment and Clean Energy

The FY 2014 Request includes $427.5 million for the Global Environment Facility (GEF), the 

Clean Technology Fund (CTF), and three programs supported by the Strategic Climate Fund 

(SCF): 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). FY 2014 

funding for Treasury’s multilateral environment and clean energy programs will spur direct 
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action and investment by other countries to reduce their own pollution sources and advance 

ongoing efforts. These global actions mitigate threats to our domestic environment that 

increasingly originate beyond our own borders, enhancing our national security and providing 

opportunities for U.S. businesses, especially in clean energy.

The U.S. contribution leverages significant funding from other donors, developing country 

governments, development institutions, and the private sector. Each U.S. dollar contributed to 

the GEF, CTF, and SCF leverages four to five additional dollars from other donors and six to ten 

times that from other funding sources—including the private sector.

Debt Relief

The FY 2014 Request includes $175.3 million to meet a portion of the U.S. commitment to the 

Multilateral Debt Relief Initiative (MDRI) at IDA and the AfDF under the current replenishment 

cycles. MDRI, together with associated debt relief efforts, reduced the debt burden for 

participating countries by about 90 percent as compared to the debt levels existing prior to 

entering the debt relief process. As a result, these countries have been able to increase povertyreducing expenditures by an average of more than three percentage points of GDP over the past 

ten years.

Middle East and North Africa Transition Fund

The FY 2014 Request includes $5 million for the Middle East and North Africa Transition Fund, 

a new multi-donor trust fund administered by the World Bank. This fund was created under the 

U.S. chairmanship of the Group of 8 to assist Arab countries that are members of the Deauville 

Partnership with Arab Countries in Transition (currently Egypt, Tunisia, Jordan, Morocco, 

Libya, and Yemen) as they address their diverse economic challenges during their political 

transitions. The fund provides quick dispensation for small grants to help countries put in place 

economic policies and government reforms that will allow them to attract greater flows of 

capital. A wide range of countries have already provided or committed to provide funding, 

including the United Kingdom, Saudi Arabia, Canada, France, Japan, Russia, Kuwait, and Qatar.

Treasury Technical Assistance

The FY 2014 Request includes $23.5 million for Treasury’s Office of Technical Assistance 

(OTA). This small program achieves big objectives as it fosters economic growth by enabling a 

government to provide better services for its citizens and reduce dependency on foreign aid. For 

over 20 years, OTA has helped developing countries build effective financial management 

systems—a core element of a well-functioning state. These financial management systems 

include: building efficient revenue collection, well-planned and executed budgets, judicious debt 

management, sound banking systems, and strong controls to combat corruption and other 

economic crimes. The program provides significant, cost-effective value for U.S. development, 

foreign policy, and national security objectives.

International Monetary Fund

Treasury is seeking legislation within its FY 2014 Budget Request for the International Monetary 

Fund (IMF). G-20 leaders and the IMF membership reached agreement at the 2010 Seoul 

Summit on a set of IMF quota and governance reforms designed to enhance IMF effectiveness. 

The U.S. successfully achieved its negotiating priorities: (1) a U.S. quota increase with a 

corresponding roll back in our participation in the IMF’s New Arrangements to Borrow (NAB); 
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and, (2) preservation of U.S. veto power in the IMF.

Legislation is needed to increase the U.S. quota in the IMF by approximately $63 billion and 

simultaneously reduce by an equal amount U.S. participation in the NAB. This action results in 

no overall change in U.S. financial participation in the IMF. The legislation is also necessary to 

allow the U.S. to accept an amendment to the IMF Articles of Agreement facilitating changes in 

the composition of the IMF Executive Board while preserving the U.S. board seat.

Since its inception, the IMF has been a critical tool for the U.S. in promoting global financial 

stability. The IMF supports U.S. jobs, exports, and financial markets. During crises abroad, the 

U.S. leverages the IMF to protect our domestic economy. 

As the world’s largest economy, the U.S. is the only country with a veto to shape major IMF 

governance and resource decisions. As emerging economies play a bigger role and seek greater 

influence, it is critical that the U.S. maintains its influence in the global economy in the coming 

years. This requires ensuring the IMF remains the leading first responder with adequate quota 

resources and that the U.S. continues to preserve its veto power. Unless the U.S. acts now to 

honor its IMF commitments, we risk jeopardizing our leadership position.

Finally, the IMF is a safe and smart investment, with a rock solid balance sheet including 

reserves and gold holdings that exceed total IMF credit outstanding (about $140 billion). The 

IMF has never defaulted on any U.S. reserve claims on the IMF since its inception nearly 70

years ago.

The required authorization requests, including for mandatory funding for the IMF quota increase 

and NAB rollback, will be submitted separately. The proposal has an assumed enactment date 

in FY 2013. The net cost of the proposed IMF legislation is zero, both in terms of budget 

authority and outlays.
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Summary of Appropriations and Requests

Treasury International Programs

FY2012 - FY2014 (in millions of $)

FY 2012 

Enacted

FY 2013 

CR Rate1

FY 2014 

Request

FY 2014 Request 

Full Numbers

Economic Growth, National Security and Poverty 

Reduction (MDBs)

International Development Association (IDA) 1,325.0 1,333.1 1,358.5 1,358,500,000 

Int'l Bank for Reconstruction and Development (IBRD) 117.4 118.1 187.0 186,956,866 

Inter-American Development Bank (IDB and FSO) 75.0 75.5 102.0 102,020,448 

Multilateral Investment Fund (MIF) 25.0 25.2 6.3 6,298,000 

Inter-American Investment Corporation (IIC) 4.7 4.7 - -

Asian Development Bank (AsDB) 106.6 107.2 106.6 106,585,848 

Asian Development Fund (AsDF) 100.0 100.6 115.3 115,250,000 

African Development Bank (AfDB) 32.4 32.6 32.4 32,417,720 

African Development Fund (AfDF) 172.5 173.6 195.0 195,000,000 

Subtotal 1,958.5 1,970.5 2,103.0 2,103,028,882 

Food Security

Global Agriculture and Food Security Program (GAFSP)2 135.0 135.8 135.0 135,000,000 

Int'l Fund for Agricultural Development (IFAD) 30.0 30.2 30.0 30,000,000 

Subtotal 165.0 166.0 165.0 165,000,000 

World Bank Environmental Trust Funds

Clean Technology Fund (CTF)3 184.6 185.8 215.7 215,700,000 

Strategic Climate Funds (SCF)4 49.9 50.2 68.0 68,000,000 

Global Environment Facility (GEF)5 89.8 90.4 143.8 143,750,000 

Subtotal 324.4 326.3 427.5 427,450,000 

Debt Relief

Bilateral Debt Reduction - - - -

Multilateral Debt Relief Initiative (MDRI) for IDA 167.0 168.0 145.3 145,300,000 

Multilateral Debt Relief Initiative (MDRI) for AfDF 7.5 7.5 30.0 30,000,000 

Tropical Forest Conservation Act (TFCA) 12.0 12.1 - -

Subtotal 186.5 187.6 175.3 175,300,000 

Treasury Office of Technical Assistance 27.0 27.2 23.5 23,500,000 

Transition Fund - - 5.0 5,000,000 

TOTAL TREASURY REQUEST 2,661.4 2,677.7 2,899.3 2,899,278,882 

1 The CR Rate reflects the annualized level provided by the Continuing Appropriations Resolution, 2013 (P.L. 112–175).

2 FY 2012 Enacted amount does not include the transfer of $25 million from the Development Assistance Account. FY 2013 CR Rate does 

not include the transfer of $14.6 million from the Development Assistance Account.

3 FY 2012 Enacted amount does not include the transfer of $45 million from the Economic Support Fund.

4 FY 2012 Enacted amount does not include the transfer of $25 million from the Economic Support Fund.

5 FY 2012 Enacted amount does not include the transfer of $30 million from the Economic Support Fund.
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Arrears Arrears Arrears Arrears Arrears Arrears Arrears Arrears Arrears Arrears Arrears

MDBs end-FY2002 end-FY2003 end-FY2004 end-FY2005 end-FY2006 end-FY2007 end-FY2008 end-FY2009 end-FY2010 end-FY2011 end-FY2012IDA 73,015,000 78,540,000 120,727,880 327,527,880 337,027,880 377,877,880 385,572,880 505,572,880 478,072,880 480,542,880 423,042,880 

MIGA 10,892,087 9,271,689 8,154,321 8,154,321 6,867,321 6,867,321 6,867,321 6,867,321 6,867,321 6,867,321 6,867,321 AfDF 220,000 10,849,144 16,789,221 29,637,221 30,994,221 32,351,221 33,366,261 39,421,261 40,476,261 86,636,261 109,136,261 AfDB 13,420 42,126 67,315 619,934 2,036,730 3,453,526 1,433,026 631,375 615,239 615,239 615,239 AsDF 133,158,400 138,908,527 98,339,611 102,139,611 118,389,611 134,639,611 175,345,350 185,595,350 195,845,350 311,095,350 326,345,350 AsDB - - - - - - - - - 213,020 212,868 IDB - - - - - - - - - - 27,022,861 MIF 88,772,000 64,341,172 39,488,672 28,576,672 26,852,572 50,128,472 50,330,972 50,330,972 50,330,972 50,380,972 50,380,972 IIC 16,055,000 22,822,619 47,822,619 47,822,619 46,098,519 46,098,519 46,098,519 46,098,519 41,428,519 20,470,519 15,800,519 IFAD 11,000 104,857 189,339 309,339 459,339 3,609,339 3,683,722 3,683,722 3,683,722 4,243,722 4,243,722 GEF 210,937,600 171,585,848 140,668,364 141,528,364 169,828,364 170,628,364 169,527,644 169,527,644 163,027,644 205,057,644 258,987,644 EBRD - 232,732 441,776 725,225 10,157 10,157 - - - - - TOTAL 533,074,507 496,698,714 472,689,118 687,041,186 738,564,714 825,664,410 872,225,695 1,007,729,044 980,347,908 1,166,122,928 1,222,655,637Notes: 1. The amount of AfDB arrears ($615,239) corresponds to the 51 capital shares from GCI-V forfeited by the United States2. The United States has not had arrears to the IFC, IDB FSO or NADBank during the FY2002-FY2012 Period 

Summary of Arrears

Multilateral Development Banks

FY2002 - FY2012

(Budget Authority; in $)
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Multilateral Development Banks

World Bank Group

The World Bank Group (WBG) is composed of the International Development Association 

(IDA), the International Bank for Reconstruction and Development (IBRD), the International 

Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the 

International Centre for Settlement of Investment Disputes (ICSID). Treasury is seeking funding 

for its commitments to IDA and IBRD. 

International Development Association

(dollars in thousands)

Treasury requests $1,358.5 million for the third and final installment to the Sixteenth 

Replenishment of the International Development Association (IDA-16). 

IDA: 

 Makes highly concessional loans and grants to the world’s 81 poorest countries – home 

to 2.5 billion people, 1.8 billion of whom survive on $2 a day or less; 

 Is the single largest source of development finance in the world’s poorest countries, and 

operates across a range of sectors, including primary education, basic health, clean water 

and sanitation, the environment, infrastructure, and agriculture; and 

 Was ranked “best performer” in aid transparency in an independent ranking of 58 donor 

organizations in 2011.

U.S. funding for IDA has helped save tens of millions of lives, combatting extreme hunger and 

poverty around the world while promoting global stability and prosperity. Projects funded 

through IDA help support U.S. national security objectives by addressing the root causes of 

extremism and conflict, and support U.S. economic objectives by fueling demand for exports in 

new markets.

The U.S. was the driving force behind the creation of IDA in 1960 and remains its largest 

shareholder. IDA’s strong leveraging of other donor contributions, coupled with internal World 

Bank resources, makes it an effective organization in which to invest U.S. development 

resources. Every $1 contribution from the U.S. leverages almost $12 in contributions from other 

donors and internal Bank resources. In FY 2012, IDA’s commitments reached $14.8 billion, 

funding 158 new operations. By region, Sub-Saharan Africa received almost half of total IDA 

commitments. 

IDA Project Examples: 

 Laos. With the help of a $10 million IDA grant, Laos is benefiting from significantly 

increased access to electricity. Before the project, only 65 percent of the population in 

targeted villages had access to electricity. During the project’s implementation from 2006 to 

2012, the number of people able to access electricity rose to 80 percent, a 15 percentage point 

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$1,325,000 $1,333,109 $1,358,500
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increase. A unique feature of this project was a targeted sub-program aimed exclusively at 

the poorest segments of the population. Called “Power to the Poor,” the sub-program used 

interest free credits to bring electricity to 30,000 households, mostly headed by women. 

 Regional. IDA grant funding has played a major role in supporting regional integration 

projects, especially in sub-Saharan Africa. In fiscal year 2012, a $35 million IDA grant was 

approved to the West African Power Pool (WAPP). WAPP is a cooperative power pooling 

mechanism for integrating national power system operations into a unified regional 

electricity market. WAPP will provide electricity to four of IDA’s poorest countries: Liberia, 

Sierra Leone, Cote d’Ivoire, and Guinea. Liberia and Sierra Leone are still recovering from 

the civil wars that have devastated large parts of both countries, and – in the case of Liberia –

led to the complete destruction of it public power system. In all four countries, electricity 

connection rates are among the lowest in the world and the cost of generating power in these 

countries remains high, primarily due to the small size of the power systems and the reliance 

on fossil fuel-based generation. By leveraging the costs of large-scale electricity production 

across several markets, projects such as this one will generate affordable electricity for the 

millions of firms and individuals who drive the region’s economic growth.

International Bank for Reconstruction and Development

(dollars in thousands)

Treasury requests $117.4 million for the third of five installments for the general capital increase 

(GCI) at the International Bank for Reconstruction and Development (IBRD). Treasury also 

requests $69.6 million for the second of four payments for the selective capital increase (SCI) at 

the IBRD. Participation in both the GCI and SCI is necessary to maintain U.S. shareholding 

above the 15 percent veto threshold at the World Bank. With 15.8 percent of voting power, the 

U.S. is the World Bank’s largest shareholder and the only country with a veto over changes to 

the World Bank’s Articles of Agreement.

IBRD: 

 Aims to reduce poverty in middle-income and creditworthy poorer countries – where 

one-third of the world’s people live on less than $2 per day – through loans, guarantees, 

risk management products, and analytical and advisory services; 

 Helps poor people gain access to jobs, markets, and social services; 

 Provides financing for essential infrastructure services, such as water, electricity, and 

roads; 

 Is uniquely positioned to address global challenges, such as food insecurity and 

environmental degradation; and 

 Yields healthy returns for U.S. economic, security, and humanitarian interests by 

strengthening new sources of global growth, working with governments to improve 

governance, accountability, and public financial management, and supporting postconflict relief efforts. 

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$117,364 $ 118,083 $186,957
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Through leadership as the IBRD’s largest shareholder, the U.S. has helped shape the global 

development agenda. It has advanced approaches that encompass core American values, such as 

helping to provide open environments for the private sector, good governance (e.g., transparency 

and accountability), a more prominent role for civil society, and universal access to healthcare

and education. U.S. investments in the IBRD have a significant leveraging effect, with every 

additional dollar of U.S. capital allowing increased lending of over $25 due to burden-sharing 

with other shareholders and the Bank’s ability to borrow in international capital markets.

IBRD General Capital Increase 

In 2010, IBRD shareholders committed to increase its capital to forestall a substantial decrease in 

lending capacity as a result of the financial crisis. Without the GCI, lending would have fallen 

from an average of $15 billion a year to less than $8 billion a year, significantly curtailing the 

IBRD’s ability to respond to regional and global challenges. 

A key outcome of the GCI negotiations was a commitment to transfer additional IBRD resources 

to finance IDA. As a result, each $1 contributed to capital will leverage nearly $8 in income 

transfers from IBRD to IDA, providing a total of $6.6 billion of internal transfers over the next 

nine years. Without this GCI, the dramatic decline in lending would mean that the income from 

loan reflows needed to support the internal transfers to IDA would be sharply diminished—

leaving donor nations to shoulder a greater burden for IDA contributions. 

U.S. support and its strong multiplier capacity will enable the IBRD to continue vital work to 

improve health and educational outcomes and to expand the access of poor people to basic 

services. Without fully financing the GCI, however, a permanent decrease in U.S. shareholding 

and voting share would result, as well as a loss of U.S. veto power.

IBRD Selective Capital Increase 

The selective capital increase (SCI) is a mechanism to adjust ownership shares of the IBRD, in 

this instance to enhance the voice and participation of developing and transition economies, 

while preserving that of the poorest members. The multi-year SCI negotiation aimed to better 

reflect major changes in the global economy, recognizing that a shift in participation was 

necessary to preserve the IBRD’s legitimacy and effective governance. Under the SCI, the U.S. 

preserves both its relative voting share and position as the largest IBRD shareholder, while 

“overrepresented” countries, principally in Western Europe, cede voting power to developing 

countries. 

A key outcome of the SCI was to preserve the current voting power of the U.S. above the 15 

percent threshold required for veto power over amendments to the IBRD’s Articles of 

Agreement. This objective is in line with the U.S. position as the world’s largest economy. As 

with the GCI, failure to fully finance the SCI would result in a permanent decrease in U.S. 

shareholding and voting share, as well as a loss of U.S. veto power.

IBRD Project Examples:

 The Philippines. In September 2010, the IBRD provided $60 million in additional 

financing to an existing project aimed at reducing rural poverty in the Philippines, where 

almost three-fourths of the country’s poor live in rural areas. The project’s approach is 

unique, as it empowers citizens to directly manage development resources, rather than being 

solely the beneficiaries. From its origins in 2002 through May 2011, the project has 

benefited 1.35 million households in over 4,500 villages. Women in particular have gained 
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from the program, both through their active project management role (as community 

facilitators and volunteers) as well in terms of employment opportunities and education 

attainment. A rigorous impact evaluation of the program has shown an average five percent 

increase in per capita consumption. The project’s success has made it a model for a national 

program covering all poor municipalities throughout the Philippines.

 Colombia. The IBRD has also supported innovative approaches to education. For example, 

the IBRD has funded a two-phase project to provide $40 million in financing to improve 

access to quality education in over 100 rural municipalities in Colombia. Previous education 

interventions in Colombia, and elsewhere, concentrated on increasing quantity (school 

attendance) without improving quality (learning outcomes). As a result, children often 

passed through school with low levels of math and reading comprehension. During the first 

phase of this program, Colombia realized gains in both coverage and learning achievement, 

accompanied by reductions in grade repetition rates, in the targeted municipalities. The

second phase of the program is also yielding positive attendance and learning outcomes. 

Looking ahead, the project aims to simultaneously decrease the lowest level of achievement 

in math and language, and increase the completion rate at the secondary school level.

World Bank Group: Monitoring Performance and Measuring Results

Strengthening the results orientation of the WBG has been a key priority to ensure that U.S. 

contributions are generating positive and lasting results on the ground. For example, the U.S. 

was a major driver of a special structure in IDA to assess results and is now working to ensure

that lessons from projects are incorporated into new projects. 

Results are measured and managed at several levels, including by tracking outcomes at the 

project level and linking disbursements to the achievement of specific targets. In addition, the 

WBG reports on results through the following three publicly available fora: 1) an annual report 

known as the “Corporate Scorecard”; 2) an annual report prepared by an Independent Evaluation 

Group (IEG) housed at the WBG; and 3) a management action record, which tracks the adoption 

of the IEG’s recommendations. These transparent assessments of performance ensure that 

taxpayer dollars are being invested wisely, and will lead to long-term improvements in 

development results.

Corporate Scorecard

The Corporate Scorecard establishes targets and monitors the WBG’s performance against those 

targets.1 It uses indicators to track development results and institutional performance. Project 

level data (e.g., the number of children immunized) is combined with corporate performance 

(e.g., average time from loan approval to disbursement), and broader development impacts are 

tied to the Millennium Development Goals (e.g., child mortality) to track results. 

The Corporate Scorecard is updated semi-annually and is made publicly available on the WBG’s 

web site. The fourth Corporate Scorecard was publicly released in October 2012. Reporting 

positive trends in areas such as ante-natal services, the Corporate Scorecard showed increases in 

the number of women receiving care and in the number of children being immunized.

 

1 The Corporate Scorecard can be found here: 

http://databank.worldbank.org/databank/download/World%20Bank%20Corporate%20Scorecard%202012.pdf
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Independent Evaluation Group

The IEG, an independent unit within the WBG, assesses the results of the WBG’s work and 

provides accountability in the achievement of those results. Drawing from its own evaluations 

and other information sources, the IEG produces an annual report: Results and Performance of 

the World Bank Group (RAP).2 

The RAP provides a rich set of data on country programs and projects, and usefully aggregates 

the data to point out strengths, weaknesses, and emerging trends. The 2012 RAP lauded the 

WBG for its significant progress in managing for results. The RAP also noted WBG’s shifting 

focus from increasing access to services to the improvement of the quality of services. 

Integrating key priority issues—environment, social development, and gender—is also a critical 

component of the WBG’s strategic directions and country programs. While most country 

programs met their objectives, IEG found that the high performance standard set in the Corporate 

Scorecard has yet to be attained. IEG pointed to opportunities for enhancing the effort in 

preparation and supervision as a way to improve project outcome ratings.

Management Action Record

The Management Action Record (MAR), which has tracked adoption of IEG recommendations, 

is an important tool for WBG learning. To strengthen the quality of evaluation recommendations 

and their implementation by WBG management, the MAR process is being revised. For 

example, IEG is prioritizing recommendations, considering their feasibility and cost 

effectiveness, and reducing their number and complexity. At the same time, Management will 

define actions and timelines to respond to IEG’s recommendations that will provide benchmarks 

against which to assess progress. The latest MAR, which covers 26 evaluations completed 

between FY 2008 and FY 2012, shows that adoption of IEG recommendations has increased 

over time.

 

2 The RAP Report can be found here: http://ieg.worldbank.org/content/dam/ieg/rap2011/rap2011_vol1.pdf
Treasury International Programs

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Inter-American Development Bank Group

The Inter-American Development Bank Group is composed of the Inter-American Development 

Bank (IDB), the Inter-American Investment Corporation (IIC), and the Multilateral Investment 

Fund (MIF). Treasury is seeking funding for its commitments to the IDB and the MIF. 

Inter-American Development Bank

(dollars in thousands)

Treasury requests $102.0 million for the third of five installments for the IDB’s Ninth General 

Capital Increase (GCI).

IDB:

 Is one of the largest sources of development financing for Latin American and the 

Caribbean, a region of significant commercial and strategic importance to the U.S.;

 Provides 26 borrowing member countries with close to half of their multilateral 

financing for major development priorities, including infrastructure, private sector 

growth, regional integration, and social safety nets; and 

 Supports U.S. strategic economic and security interests by working to strengthen citizen 

security in the region, as well as financing the construction of schools, bridges, health 

clinics and roads, thus providing opportunities for people to lift themselves out of 

poverty.

For over 50 years, the U.S. has been the leading shareholder of the IDB, ensuring that U.S. 

investments made in partnership with the other members of the Bank are financially sound and 

advance the economic and social development of Latin America and the Caribbean. As the 

largest shareholder of the IDB, the U.S. exercises strong influence over the Bank’s policies and 

programs, which further strengthens the role of the IDB as a partner in advancing U.S priorities 

in the Western Hemisphere.

U.S. investments in the IDB have a significant leveraging effect, with every additional dollar of 

U.S. capital allowing lending to increase by over $10 because of burden-sharing with other 

shareholders and the Bank’s ability to borrow in international capital markets.

IDB General Capital Increase

The U.S. supported the recapitalization of the IDB in 2010 in order to avert a sharp reduction in 

lending during the financial crisis. Without the GCI, lending would have fallen to approximately 

$7 billion a year, well below estimates of the $12 billion in borrowing needs of member 

countries. The GCI agreement also secured a total of $2 billion in grants for Haiti through 2020. 

U.S. influence was evident during the GCI negotiations, in which the U.S. consolidated key 

institutional reforms to improve the strategic direction of the IDB.

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$75,000 $ 75,459 $102,020
Treasury International Programs

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IDB Project Examples:

 El Salvador. The IDB is a key partner in critical U.S. priorities in the region, such as citizen 

security in Central America. A social youth violence prevention project in El Salvador 

combines work training, institutional strengthening, and jail rehabilitation programs. In a 

joint effort by the central government and the municipalities of the San Salvador 

metropolitan area, a $45 million loan from the IDB seeks to generate more opportunities for 

the nearly one in four Salvadoran youth between the ages of 15 and 24 who do not work or 

study. The project will support 30 municipalities that develop and implement prevention 

plans. Around 10,000 youth will benefit from these communal programs that include sports, 

art, and training in the prevention of intra-family violence. Projected reductions in crime and 

violence rates – even under conservative assumptions – would generate a benefit of $2.50 for 

every dollar invested.

 Mexico. Salud Digna Para Todos I.A.P., a Mexican non-profit organization, received a $10 

million loan from the IDB to expand access to high-quality, low-cost medical diagnostic 

services in several northwestern and central Mexican states. The loan will help finance the 

opening of 38 new diagnostic clinics in the next five years, tripling the organization's current 

network and providing affordable and timely health diagnostic studies for approximately 2.5 

million patients a year. The IDB financing is expected to be complemented by syndicated 

loans and co-financing of up to $7 million from social impact investors mobilized by the 

Bank. This project will help narrow an important gap in diagnostic and preventive 

healthcare, as over two thirds of beneficiaries come from the poorest segments of the 

population. The project will pave the way for the accurate, affordable, and timely detection 

and diagnosis of health risks and diseases, providing low-income Mexicans with early 

treatment, improving their chances of survival, and avoiding costly medical interventions that 

strain both personal finances and finances of the public health system. Over the 10-year life 

of the IDB loan, the project aims to benefit 26 million mainly low-income citizens.

Inter-American Development Bank: Monitoring Performance and Measuring Results

The IDB tracks two broad areas of performance for its projects. First, it measures whether its 

strategic focus is fully aligned with the programming and the delivery of specific operations in 

each country. Second, the IDB measures results at the project and country level to ensure that 

outputs, outcomes, and, in some cases, long-term impacts of each intervention are captured. 

In 2011, the IDB's country dialogue, which is aimed at producing results-based country strategies 

and program documents, marked its second year of implementation. The Bank expects to 

achieve full implementation of results-based country strategies in 2013. 

The IDB tracks project performance from project design to project completion. Internal 

performance indicators include: evaluation at entry, outputs, efficiency during project 

implementation, and the achievement of results at the end of the project. 

In addition, the IDB produces an annual Development Effectiveness Overview (DEO).

3

 Through 

this review, the IDB tracks progress on regional development goals (e.g., reductions in the 

extreme poverty rate) and assesses the IDB’s outputs against those goals (e.g., individuals 

 

3 The DEO can be found here: http://iadb.org/en/topics/development-effectiveness/development-effectiveness,1222.html
Treasury International Programs

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benefitting from a targeted anti-poverty program). The DEO also assesses progress on lending 

program targets as well as operational effectiveness and efficiency. 

In 2011, the DEO found that most outputs contributing to the regional goals were satisfactory. 

However, there were challenges in the areas of infrastructure and social welfare. The IDB

generally met its targets in operational effectiveness, except in certain measures of efficiency,

where the time to produce a country strategy or to meet criteria for loan disbursements lagged. 

As a result, the IDB has focused its efforts on the timely execution of projects and strategies to 

improve results. 

The IDB also has a strong independent evaluation office (OVE) that works with the Bank’s

Board of Directors to identify improvements needed in corporate operations and the 

effectiveness of project interventions. OVE conducted a comprehensive review of the reforms 

agreed to as part of the GCI and presented its findings at the IDB’s Annual Meeting in March 

2013. OVE's report commended the IDB for its strong implementation of the agreed reforms, 

while pointing to a few areas where more work is needed to strengthen effectiveness (e.g., the 

Bank's inspection panel and its programming in Haiti). Management has responded 

constructively to this evaluation and is working with the Board of Directors to address the 

shortcomings identified.

Multilateral Investment Fund

(dollars in thousands)

Treasury requests $6.3 million to clear a portion of U.S. arrears (approximately $50 million) to 

the Multilateral Investment Fund (MIF). The need for new financing for the MIF is urgent since 

U.S. arrears account for more than half the MIF's annual operating budget. Without additional 

financing, the institution will be forced to cease operations in 2014 or 2015. This payment will 

help to support the valuable contributions that the institution is making to development in Latin 

America.

MIF:

 Is a special facility within IDB that promotes micro- and small-enterprise growth in 

Latin America, and provides both grant and equity financing to stimulate private sector

development;

 Works directly with private and public sector partners to strengthen the environment for 

business, build the capabilities and skills of the workforce, and broaden the economic 

participation of smaller enterprises; and

 Reinforces U.S. regional economic objectives by supporting economic growth and 

poverty reduction through increased private investment and private sector development 

in Latin America and the Caribbean.

The U.S. was the primary force behind the creation of the MIF. Since its establishment in 1993, 

its focus has been on areas prioritized by the U.S. For example, in April 2009, the MIF agreed to 

participate in a new partnership announced by the White House to provide up to $250 million to 

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$25,000 $25,153 $6,298
Treasury International Programs

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microfinance institutions to weather the global financial crisis and allow them to continue to help 

small businesses in the Western Hemisphere. 

For every dollar of donor contribution, the MIF leverages over $3.75 from the private sector or 

counterpart organizations.

MIF Project Examples:

 Regional. In April 2012, Caterpillar, CEMEX, Microsoft, Arcos Dorados, and Wal-Mart 

joined the MIF in supporting a region-wide initiative in all 26 borrowing member countries 

to provide high-impact, market-relevant training and job placement services to at least one

million youth over ten years old. The initiative will bring together government agencies, 

multinational companies, local firms, and non-governmental organizations (NGOs) to scale 

up the successful employment training models that the MIF and its partners have developed 

in nearly two decades of work.

 Guatemala. Through a $350,000 grant, the MIF helped Salcajá – a rural financial 

cooperative primarily serving indigenous women in Quetzaltenango and Totonicapán –

expand financial services based on remittances. Specifically, the MIF funded a market study 

and technical assistance needed to design and market new financial products, increase clients,

and update databases and information systems. Financial products and services introduced 

for the first time included savings accounts, debit cards, credit card services, online account 

consultations, repatriation insurance, hospitalization insurance, funeral insurance, and 

payment of utility bills. Salcajá also created a customer service program in local languages 

(Quiche, Mam) and developed an orientation program for new members of the cooperative. 

Over the course of the project, the cooperative increased its membership from 18,000 to over 

27,000 members. Remittance transfer has also increased as services have become more 

efficient and less costly.

 Dominican Republic. Through a $370,000 grant, approved in September 2012, the MIF 

will support the development of a recycling business to improve health and environmental 

conditions in 11 disadvantaged communities in Santo Domingo. The project will create the 

Association of Community-based Environmental Sanitation Foundations for Recycling 

(AFCSA), which will promote linkages with the private sector, including both suppliers and 

purchasers of recyclable materials. Other partners, such as PepsiCo, have already committed

to finance the infrastructure and basic equipment needed for a collection center.

Multilateral Investment Fund: Monitoring Performance and Measuring Results

Results-based management is a central MIF priority. The MIF has adopted an integrated project 

management system to tie disbursements to specific well-defined milestones, measure results at 

the beneficiary level, collect data on results and beneficiaries from every project, and aggregate 

that data across projects and topics. 

The MIF also publishes the annual Development Effectiveness Report, which analyzes the 

performance, effectiveness, and impact of its projects and activities.

4

 

4 The 2012 Development Effectiveness Report can be found here: 

http://www5.iadb.org/mif/HOME/Knowledge/tabid/426/idPublication/65155/language/en-US/Default.aspx
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To ensure that the MIF’s project management system functions optimally, the MIF introduced a 

number of tools in 2011 to strengthen project design and implementation. These included a tool 

to assess the development effectiveness of proposed projects (Quality for Effectiveness in 

Development); an improved logical framework model; a new template for project abstracts; the 

Diagnostic of Executing Agency Needs, an improved institutional assessment of executing 

agencies; a system for disbursements by results; and tools for assessing poverty levels of regions 

and target beneficiaries. 

The MIF is now engaged in or actively planning about 20 prospective evaluations, which will 

take several years to conduct. Lessons learned in implementing an evaluation program

emphasize the importance of: i) involving evaluators in project design and ensuring executing 

agency buy-in; ii) fitting impact evaluation methodologies to project specifics; iii) ensuring that 

project budgets cover evaluation needs; and iv) involving local staff.
Treasury International Programs

19

African Development Bank Group 

The African Development Bank Group is comprised of the African Development Fund (AfDF) 

and African Development Bank (AfDB). Treasury is seeking funding for its commitments to 

both the AfDF and AfDB.

African Development Fund 

(dollars in thousands)

Treasury requests $195.0 million for the third and final installment of the twelfth replenishment 

of the African Development Fund (AfDF-12). 

AfDF:

 Is the concessional arm of the AfDB Group and provides grants and highly concessional 

loans to the poorest countries in Africa, nearly half of which are fragile or conflictaffected states; and 

 Focuses its investments on its areas of demonstrated comparative advantage: addressing 

Africa’s infrastructure deficit, supporting regional integration by scaling investments in 

infrastructure, and assisting fragile states to restore stability and rebuild their institutional 

capacity. 

U.S. contributions to the AfDF provide significant returns on U.S. economic, national security,

and humanitarian objectives in Africa, with every dollar contributed by the U.S. leveraging close 

to $9 from other donors. 

AfDF Project Examples:

 Botswana – Zambia. The AfDF is investing $75 million to support the construction of the 

Kazungula Bridge, which will link Botswana and Zambia. This multi-national project

supports regional integration, a key AfDB priority. The project includes a new road and rail 

bridge to replace the existing ferry used to cross the Zambezi River and is expected to have a 

dramatic impact on economic activity. Currently drivers wait an average of 30 hours to cross 

the river—an estimated loss in productivity of $17.5 million annually. Decreased congestion 

will reduce delays by about 80 percent when the bridge is completed. Improved links on this 

vital corridor between the two countries will also improve trade and provide benefits to both 

the agriculture and services sectors in Botswana and Zambia.

 Liberia. The AfDF is investing nearly $40 million in the rehabilitation of the water treatment 

system in four urban settlements. The project will focus on restoring pre-war capacity and 

providing increased access to a safe water supply. When completed, the project will provide 

safe and reliable water to nearly 700,000 residents. As a part of the project, the AfDF is also 

supporting capacity building programs for the Liberian Water and Sewer Corporation and 

implementing a sanitation awareness campaign.

 Côte d’Ivoire. The AfDF is supporting women who have been victims of gender-based 

violence (GBV). With a lack of national services focused on GBV victims, the AfDF stepped 

in to establish an integrated system that provides victims with health treatment, legal 

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$172,500 $173,556 $195,000
Treasury International Programs

20

assistance, and support for economic reintegration. The project provided training for 

hundreds of social and health workers, police officers, and judicial agents. It is also

rehabilitating and equipping health facilities and social protection centers. Beyond simply 

providing services and improving conditions for victims, the program also supports education 

and awareness campaigns to help prevent future incidents.

African Development Bank

(dollars in thousands)

Treasury requests $32.4 million for the third of eight installments for the African Development 

Bank’s Sixth General Capital Increase (AfDB GCI-VI).

AfDB:

 Serves all 54 African member countries, including the Arab Spring countries in North 

Africa, through non-concessional lending to public and private sector entities in middleincome countries, as well as private sector lending to low income countries; and 

 Yields healthy returns for U.S. economic, national security and humanitarian interests by 

strengthening new sources of global growth, supporting nascent democracies in North 

Africa, and lifting people from poverty. 

Through its support for growth in Africa’s middle-income countries, the AfDB is helping 

solidify new democracies and create stable societies that can govern effectively and meet the 

needs of their people. In addition, the AfDB is helping create new markets for U.S. businesses 

and workers, and enhancing the capacity of African countries to move beyond development aid. 

U.S. investment in the AfDB has a significant leveraging effect, with each additional dollar of 

U.S. capital supporting additional lending of $20 through burden-sharing with other shareholders 

and an increase in the Bank’s ability to borrow from the international capital markets.

AfDB GCI

The U.S. is the largest non-regional shareholder in the AfDB, and U.S. contributions to GCI-VI 

helped the Bank to nearly triple its lending from an average of $1.8 billion before GCI-VI to over 

$5 billion annually by 2011. In order to avoid any dilution of U.S. shareholding and retain a

single seat on the Executive Board, the U.S. must fulfill its financial obligations under the GCI. 

During the GCI negotiations, the U.S. championed a number of key institutional reforms. These 

included adoption of a comprehensive income model to ensure financial sustainability, budget 

discipline, and steady transfers to the AfDF, increased transparency and disclosure, stronger risk 

management, and a heightened focus on results. Such reforms are aimed at solidifying the major 

strides that the AfDB has taken over the past five years. These reforms improve the AfDB’s 

institutional effectiveness by narrowing its strategic focus and strengthening controls on project 

quality.

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$32,418 $32,616 $32,418
Treasury International Programs

21

AfDB Project Examples:

 Regional. The AfDB financed a Rural Water Supply and Sanitation Initiative in 23 countries 

in Africa, providing equitable access to water supply and sanitation to the rural poor across

Africa. In eight years of implementation, the AfDB has provided $1.3 billion for 31 

programs and leveraged $4.2 billion from other donors. These programs have brought water 

supply to 45.5 million people and sanitation services to 30 million people.

 Cape Verde. The AfDB provided financing for the Cabeolica Wind Power Project in Cape 

Verde, Africa’s first public-private partnership in the wind energy sector. The project

leveraged six times the financing provided by the AfDB ($20 million) and started feeding 

power to the grid within nine months of the start of construction. The project now supports 

25 percent of Cape Verde’s annual electricity demand and is helping lower carbon emissions 

by 65,000 metric tons a year. 

 Namibia. In May 2012, the AfDB approved a nearly $8 million loan to Trustco, a private 

sector student loan company. The loan will allow Trustco to provide more than 10,000 

micro-loans to facilitate distance learning for Namibian students. The loans will benefit both 

current students and teachers who want to improve their own qualifications. 

African Development Bank Group: Monitoring Performance and Measuring Results

In 2012, as part of the AfDB Group’s effort to deepen its focus on results, it launched the Annual 

Development Effectiveness Review (ADER),

5

a corporate management tool that assesses the 

AfDB Group’s overall performance. Using the AfDB Group’s Results Measurement Framework

– a set of measurable objectives– the ADER presents scorecards tracking the AfDB Group’s 

progress against its performance targets in terms of development results on the ground and 

operational effectiveness, and the efficiency of the AfDB Group’s institutional management. 

The ADER reports on how the AfDB Group: meets its key sector outputs and intermediate 

outcomes, which represent the AfDB Group’s tangible contributions to development in Africa 

(e.g. miles of roads constructed or rehabilitated); links operational effectiveness to the quality of 

its outputs (e.g. problem projects in the portfolio); and captures institutional effectiveness to 

determine how well the AfDB Group is implementing internal reforms and meeting its own 

corporate governance targets (e.g. share of women in professional staff). The AfDB Group’s 

independent Operations Evaluation Department, contributes to the ADER process through its 

assessments of completed projects, sector policy reviews, and country assistance evaluations. 

The 2012 ADER found that the AfDB Group was meeting targets in most areas, including 

energy, water, and sanitation and health but lagging in other areas such as transport and 

education. As a result, the AfDB will emphasize rural transport network programs that create 

economic opportunities for isolated communities and youth employment programs that promote

education and skills. Areas flagged for operational improvement included program delivery 

efficiency (e.g., the pace of disbursement) and staff turnover in human resources. 

 

5The ADER can be found here: http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-andOperations/ADER%202012%20(En).pdf
Treasury International Programs

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Asian Development Bank Group

The Asian Development Bank Group is comprised of the Asian Development Fund (AsDF) and 

Asian Development Bank (AsDB). Treasury is seeking funding for its commitments to both the 

AsDF and AsDB.

Asian Development Fund 

(dollars in thousands)

Treasury requests $115.25 million, with $89.9 million to serve as the first of four contributions to 

the Asian Development Fund’s Tenth Replenishment (AsDF-11). The remaining $25.35 million 

is for partial clearance of U.S. arrears to the AsDF, which currently exceed $326 million. The 

early 2012 AsDF negotiations concluded with the U.S. pledging $359.6 million over four years 

(FY 2014-2017) or $89.9 million per year—a 22 percent reduction from the $461 million 

($115.25 million per year) pledged during the previous replenishment period (FY 2010-2013). 

This reduced pledge amount, combined with the planned arrears payment, is part of a multi-year 

plan to clear U.S. arrears at the AsDF.

AsDF:

 Is a key source of concessional financing for development in the 20 poorest countries in 

the Asia-Pacific region, focusing on the construction of critical infrastructure such as 

roads, water and sanitation, electricity grids, and schools;

 Provides financing for development in an additional 11 fragile and vulnerable smallisland states;

 Rewards performance by allocating resources based on results; and

 Has been recognized by the U.S. national security community as critical to the success of

U.S. security and political objectives in Afghanistan.

The AsDF is a major partner in U.S. efforts in Afghanistan, and has committed more than $2.8 

billion to support Afghanistan’s stability and reconstruction since 2002. AsDF investments in 

Afghanistan are significant in both scope and scale. The AsDF is rebuilding over 1,100 

kilometers of roads, enabling security forces to access remote regions and farmers to bring their 

products to market, as well as facilitating transport of the country’s significant mineral wealth for 

export. AsDF projects are also: improving irrigation and water infrastructure, so staple crops 

like wheat, maize, and barley can compete against the lure of opium; repairing power 

transmission lines, and; expanding the rail transport network. Governance reform programs are 

strengthening provincial administrations and improving transparency and accountability of 

public finances, including extractive industry revenues. 

U.S. contributions to the AsDF provide significant returns on U.S. priorities in the region. Every 

dollar contributed by the U.S. leverages close to $13 from other donors. 

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$100,000 $100,612 $115,250
Treasury International Programs

23

AsDF Project Examples:

 Afghanistan. In building a railway line from the major northern city of Mazar-e-Sharif to 

Hairatan, the AsDF helped to open a transport artery crucial to Afghanistan’s reconstruction 

and at the same time met the fundamental needs of many of the country’s poorest people. 

When border bottlenecks at Afghanistan’s main northern port of entry and security concerns 

on the southern and eastern frontiers were limiting international trade and impeding the 

delivery of needed materials and humanitarian aid from abroad, this railway project provided 

a rapid response for a better flow of goods into Afghanistan. This rail line is part of a larger 

rail network planned across the north and other parts of the country, as well as to neighboring 

Tajikistan and Pakistan. The line will help Afghanistan fulfill its potential as a key transit 

link in South and Central Asia.

 Bhutan. Environmental sustainability is one of the AsDB group’s three strategic priorities. 

The Green Power Development Project in Bhutan is an effort to both harness the country’s 

vast hydropower potential and bring electricity to rural households through the development 

of the Dagachhu hydropower facility. This facility will export clean energy to a private 

distributor in India through the existing grid, replacing electricity now produced by fossil fuel 

generators in the country and reducing carbon emissions. The project will use the proceeds to 

subsidize the development and operation of the country’s rural electrification network, 

extending hydroelectricity to nearly 9,000 rural households and facilities. This innovative 

approach is an example for other projects throughout the country. 

 Bangladesh. AsDF is working with food producers in northwest Bangladesh. Through 

training, credit, and marketing support, the AsDF is assisting poor small-landholding farmers 

to improve their livelihoods, generate rural employment, and reduce poverty by switching 

from cultivation of the traditional rice crop to high-yield and high-value crops (e.g., varieties 

of vegetables, fruits, and spices). The project has improved food security for about 240,000 

people (half of whom are women) and ensured a nutritious diet for households that subsisted 

mainly on rice.

Asian Development Bank

(dollars in thousands)

Treasury requests $106.6 million for the fourth of five installments of the Asian Development 

Bank’s (AsDB) fifth GCI.

AsDB:

 Meets important needs in 24 creditworthy developing economies in Asia through the 

provision of loans, technical assistance, and policy advice;

 Extends private sector loans and guarantees and makes equity investments in low- and 

middle-income countries at market-oriented rates; and

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$106,586 $107,238 $106,586
Treasury International Programs

24

 Supports U.S. economic, security and humanitarian interests by strengthening new 

sources of global growth through the construction of schools, bridges, health clinics, and 

roads, providing opportunities for people to lift themselves out of poverty.

The AsDB’s comparative advantage is infrastructure finance in core sectors such as energy, 

transport, and water, which typically comprise close to 80 percent of AsDB operations. The 

AsDB is an indispensable U.S. partner in driving growth and reform in a region where 1.7 billion 

people – nearly a quarter of the world’s population – still live on less than $2 per day. U.S. 

investments in the AsDB have a significant leveraging effect, with each additional dollar of 

capital supporting additional Bank lending of over $20. This effect is due to burden-sharing with 

other shareholders and the Bank’s ability to borrow from international capital markets.

AsDB GCI

In 2009, the Asian Development Bank sought support for a 200 percent capital increase – its first 

in 15 years – to forestall a dramatic drop in lending from $10 billion to $4 billion annually. 

Shareholders agreed that new capital was necessary to ensure an adequate level of development 

assistance to the region with the world’s largest number of people living in absolute poverty.

In addition to facilitating a strong response to the global financial crisis, the capital increase has 

allowed the AsDB to increase its efforts to foster inclusive and environmentally sustainable 

growth and regional integration throughout the Asia-Pacific region. As these efforts contribute 

to economic growth and poverty reduction, they also increase opportunities for U.S. suppliers of 

goods and services. From January to October 2012, U.S. goods exports to AsDB borrowers 

grew by 6.0 percent on an annualized basis compared to 2.8 percent in the rest of the world.

AsDB Project Examples:

 Afghanistan. While the Bank’s primary focus is on sovereign lending for infrastructure 

activities, the capital increase also made possible the expansion of its private sector 

operations, which act as a catalyst for investments that the private sector might not otherwise 

be willing to make. A strong example is the AsDB private sector loan issued to the Afghan 

Telecom Development Company to re-establish critical connectivity in a fragile, conflictwracked environment, while serving the poor, employing women, and facilitating social 

services. Based on the strong positive results achieved by this project, in June 2012 the U.S. 

Treasury awarded the AsDB the first ever Department Development Impact Honor award.

 Armenia. The AsDB works to mainstream gender in its operations by undertaking projects 

classified as either having a gender equity theme or delivering a tangible benefit to women, 

and contributing to gender equality and female empowerment. In Armenia, the AsDBfunded Women’s Entrepreneurship Support Sector Development Program is strengthening 

the business environment and enabling women entrepreneurs and micro, small, and mediumsized enterprises (MSMEs) to play a greater role in economic development. This loan allows

participating financial institutions to provide local currency loans to MSMEs, of which at 

least 50 percent must be owned by women. The program is complemented by AsDB 

technical assistance to improve the entrepreneurial capacity of women and increase 

government and private financial institution capacity to support female entrepreneurship.

 Uzbekistan. The AsDB-funded Small and Microfinance Development Project facilitated the 

establishment of 116 savings and credit unions (SCUs), which have provided credit to over 

212,000 women. Through its close work with the Uzbekistan Business Women’s 

Association, this project achieved over 40 percent female representation at the SCUs, with 
Treasury International Programs

25

women holding the positions of Chair, managing director, or both at 38 percent of them. In 

addition, Uzbekistan passed several pieces of legislation as part of the project to regulate the 

microfinance sector, providing legal protection to female entrepreneurs.

Asian Development Bank Group: Monitoring Performance and Measuring Results

The primary vehicle used by the AsDB Group to evaluate and manage results is the annual 

Development Effectiveness Review.6 Through this review, the AsDB Group assesses its 

performance in terms of outputs, outcomes, and operational and organizational effectiveness. It 

then uses those assessments to address any problems identified and as input in crafting strategic 

priorities. The AsDB Group is straightforward in this review and readily identifies areas where 

its performance has been below target. Further, the AsDB Group’s Independent Evaluations 

Department reviews select projects and results for accuracy and effectiveness. 

The latest review found that, while the AsDB Group’s delivery of outputs (e.g., number of 

classrooms built and rehabilitated) was generally good, achievement of desired outcomes was 

below target even as it had improved from previous years. In terms of operational effectiveness, 

the AsDB Group generally met its targets, except two of the six categories: “Quality of 

Completed Operations” and “Finance Transfer and Mobilization”. In the former category, the 

number of operations and strategies rated successful at completion was below target, but 

improved in a majority of the indicators from the previous year. In the latter category, the 

disbursement ratio fell below target, and AsDB management has developed initiatives to 

improve project readiness. The AsDB Group generally met its targets for organizational 

effectiveness. 

To address shortcomings, the AsDB Group is currently implementing group-wide action plans to 

improve project outcomes and the quality of completed operations. Based on this and past 

reviews, the group is also working to: improve timeliness of project processing through 

streamlined business processes; improve the gender balance among staff (i.e., more female staff 

members); increase budget efficiency to continue to deliver quality operations within the current 

budget; and further mainstream management for development results at the AsDB and AsDF 

(e.g., by reviewing the results framework and improving use of results-based work plans). 

 

6 The DER can be found here: http://www.adb.org/documents/series/development-effectiveness-review
Treasury International Programs

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Food Security 

Global Agriculture and Food Security Program 

(dollars in thousands)

Treasury requests $135 million for the U.S. contribution to the Global Agriculture and Food 

Security Program (GAFSP). Launched in April 2010, GAFSP is the multilateral component of 

the President’s “Feed the Future” initiative. The World Bank not only administers this 

multilateral trust fund, it is also an implementing agency along with the International Fund for 

Agricultural Development (IFAD) and the regional development banks.

GAFSP:

 Provides additional financing for low-income countries that demonstrate a 

comprehensive approach to strengthening food security;

 Aligns the resources of other donors with U.S. global food security priorities;

 Promotes best practices in governance and transparency of its operations, and in the 

measurement of results; and

 Promotes both economic, national security, and humanitarian interests of the U.S., with 

projects supporting increases in smallholder farmer income through more productive 

agricultural sectors and improved nutritional outcomes for the most vulnerable.

The U.S. has been a driving force behind GAFSP since its inception and has successfully worked 

to incorporate design features that 1) require high levels of transparency; 2) include the voice of 

civil society; and 3) implement state of the art monitoring and evaluation systems that track the 

results of GAFSP’s investments. In 2012, then Secretary Geithner announced the 

Administration’s intention to commit $1 to GAFSP for every $2 in new pledges by other donors, 

up to a total U.S. contribution of $475 million. This challenge, along with previous U.S.

financial contributions to the fund, has underscored the U.S. commitment and helped to mobilize 

additional contributions from Canada, Japan, the Netherlands, South Korea, the Gates 

Foundation, and the United Kingdom totaling $375 million. 

After two and a half years of operations, GAFSP has made progress in its efforts to provide 

financing for country-led, evidence-based agricultural development strategies and projects in the 

world’s poorest countries. GAFSP has awarded $658 million in grants to 18 countries in Africa, 

Asia, and Latin America. Once they are fully implemented, these grants are expected to increase 

the income of at least 8.2 million smallholder farmers and their families.

GAFSP Project Examples:

 Togo. GAFSP has financed the rehabilitation of 250 kilometers of rural roads to better 

connect farmers to local markets. It has also worked with civil society organizations to 

provide 18,000 farmers with better access to improved seed varieties and fertilizer. Where 

 

7

FY 2012 Enacted amount does not include the transfer of $25 million from the Development Assistance Account.

8

FY 2013 CR Rate does not include the transfer of $14.6 million from the Development Assistance Account.

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$135,0007 $135,8268 $135,000
Treasury International Programs

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most Togolese farmers subsist on crops grown on unfertilized, unirrigated plots, farmers 

supported by GAFSP are now producing commercial volumes of rice seed on large, irrigated 

paddies. GAFSP funds are also spurring broader reforms that will increase productivity in 

the agricultural sector such as introducing a results-based management and accountability 

system at the Ministry of Agriculture, strengthening its fiduciary management capabilities, 

and modernizing its infrastructure and equipment. GAFSP funds have been catalytic in 

attracting other donors back to Togo’s agriculture sector, such as France and Germany, 

which have begun to invest in rural infrastructure and value chain development.

 Sierra Leone. GAFSP financing has underwritten the delivery of improved extension 

services to farmer-based organizations to help farmers boost yields in key staple crops. 

Rehabilitation for irrigation has begun on 500 hectares of inland valley swamps in an effort 

to increase national rice production.

 Haiti. Farmers are gaining access to improved agriculture inputs and technologies through 

the development of a private agriculture service and input provider network. Access to 

improved seeds and fertilizers, as well as training on animal and plant health, are expected to 

improve yields and incomes for approximately 100,000 small farmers. 

 Bangladesh. Through 375 new livelihood field schools, farmers are being introduced to 

new production technologies for rice, fisheries, and livestock, and the second year of field 

demonstrations of these new technologies has recently begun. The use of improved seed 

varieties as well as better fish and livestock management are expected to sustainably increase 

the income of 345,000 smallholder farmers and their families. GAFSP is also providing 

training to the Bangladeshi government that will improve its capacity to manage and monitor 

and evaluate its projects.

GAFSP: Monitoring Performance and Measuring Results

GAFSP’s governance is highly inclusive and transparent. Key decisions concerning grant 

allocations and governance are made by GAFSP’s Steering Committee, comprised of recipient

country representatives and donor partners. Accredited observers from civil society and the 

private sector actively participate in all trust fund committee discussions. GAFSP strives for full 

transparency in its operations by posting online all project proposals, Steering Committee 

meeting minutes, and other relevant governance documents. GAFSP also makes its annual 

reports available online and has begun to post initial project results.

GAFSP has in place several mechanisms to track results. These include common results 

indicators for all GAFSP projects that will allow aggregation of results across the GAFSP 

portfolio, an annual GAFSP report, and the use of rigorous impact evaluations on at least 30 

percent of all GAFSP-financed projects to help donors better track impacts to the household level 

This is noteworthy, since most development institutions conduct impact evaluations on less than 

10 percent of all projects. All results will be made publicly available on the GAFSP website.9

World Bank staff are currently collecting baseline data for impact evaluations in six GAFSP 

countries: Bangladesh, Haiti, Mongolia, Nepal, Niger, and Rwanda. 

 

9 www.gafspfund.org
Treasury International Programs

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International Fund for Agricultural Development 

(dollars in thousands)

Treasury requests $30.0 million for the second of three installments for the Ninth Replenishment 

of the International Fund for Agricultural Development (IFAD). 

IFAD: 

 Serves 138 countries globally, with almost 50 percent of resources dedicated to SubSaharan Africa; 

 Is a small, highly focused development finance institution that provides loans and grants 

to support smallholder agriculture and rural development, with the aim of improving food 

security in the poorest regions around the globe; and

 Works with developing country governments, civil society organizations, international 

non-governmental organizations, and the private sector to design innovative programs 

and projects that fit within national priorities for agriculture and rural development. 

IFAD’s projects have a strong track record of improving rural livelihoods by taking a holistic 

approach to rural development. With the ultimate objective of improving rural livelihoods and 

food security, IFAD strives to help farmers increase agricultural productivity by adopting new 

agricultural techniques, developing new rural financing mechanisms (such as rural lending 

cooperatives), and gaining access to new markets. In addition, IFAD works closely with host 

governments to influence the national policies that govern agriculture and rural life. 

IFAD Project Examples:

 Chad. In rural Chad, IFAD provided literacy training, combined with capacity building and 

awareness training in improved nutrition and management skills, to enable communities to 

run cereal banks and village credit and savings systems. The cereal bank system allowed 

farmers to store their grain more safely so that families not only have enough to eat 

throughout the year but also have a surplus to generate income. Women have used village 

credit systems to grow tomatoes and other vegetables and to open small markets in their 

villages. 

 Bangladesh. IFAD is helping rural communities adapt to environmental degradation in 

high-risk areas. For instance, Bangladesh’s Ganges Delta is increasingly vulnerable to rising 

sea levels and extreme weather conditions. IFAD is working with poor farmers to protect 

their land and their families from more frequent cyclones and storms. The project is building 

flood protection embankments and drains and establishing cyclone shelters, livestock 

shelters, and protective tree belts. 

IFAD: Monitoring Performance and Measuring Results

IFAD issues an Annual Report of Results and Impact (ARRI)

10 of key evaluations completed 

each year by IFAD’s Independent Office of Evaluation, with an emphasis on areas of 

 

10 The ARRI can be found here: http://www.ifad.org/evaluation/arri/index.htm

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$30,000 $30,184 $30,000
Treasury International Programs

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improvement or deterioration since the ARRI baseline was completed in 2003. The ARRI 

provides management and IFAD member states with an independent perspective on performance 

and identifies lessons and systemic issues that need attention. 

In addition to the ARRI, IFAD produces an annual Report on IFAD’s Development 

Effectiveness (RIDE)11 to track IFAD’s performance against its Results Measurement 

Framework (RMF).

12 The RIDE includes indicators to measure outputs of ongoing projects, 

outcomes of recently closed projects, and indicators of institutional management efficiency and 

resource effectiveness. Key output indicators include: number of people receiving services from 

IFAD-supported projects; area of constructed/rehabilitated irrigation projects; number of people 

trained in crop/livestock production practices/technologies; number of marketing groups 

formed/strengthened; and number of people trained in business and entrepreneurship. At the 

outcome level, IFAD’s RMF assesses performance against internationally accepted criteria of 

project performance: relevance, effectiveness and efficiency; rural poverty impact; and other 

performance criteria such as sustainability; innovation, replication and scaling up; and gender

equality and women‘s empowerment. 

 

11 The RIDE can be found here: http://www.ifad.org/deveffect/ride/index.htm

12The Results Measurement Framework can be found here: http://www.ifad.org/deveffect/mfdr.htm
Treasury International Programs

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World Bank Environmental Trust Funds 

Clean Technology Fund 

(dollars in thousands)

The U.S. has pledged a total of $2 billion to the Climate Investment Funds, which include the 

Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF). As of December 2012, the 

U.S. had paid $714 million into the CTF and $200 million to the SCF for a total of $914 million.

Treasury requests $215.7 million for the CTF. The FY 2014 request is critical to keep funds 

moving through the CTF pipeline for ongoing projects. Currently, the U.S. is the only country 

that has not yet contributed its full pledge amount.

CTF:

 Targets 18 emerging market countries with rapidly growing energy demand, including 

Mexico, Turkey, India and South Africa;

 Has a robust pipeline with 62 projects totaling over $2.4 billion expected to be approved 

in 2013 and 2014;

 Supports U.S. economic, national security, and environmental objectives by incentivizing 

countries to deploy renewable energy and clean transport and to increase energy 

efficiency throughout the economy by reducing greenhouse gas emissions, enhancing 

energy security, and opening up new markets for green technologies; and

 Keeps overhead costs low by delivering programs through the multilateral development 

banks (MDBs).

The CTF provides a single channel to promote green solutions to growing energy demand in some 

of the largest emerging market countries. The CTF taps into the capital, human, technical, 

environmental, and fiduciary resources and safeguards of the MDBs. This increases the leverage 

of U.S. financial resources while minimizing administrative costs. For every dollar the U.S. has 

contributed to the CTF, other donors have contributed $4.70. Most importantly, the CTF is 

helping to jump-start large-scale green infrastructure investments and expand markets for green 

technologies in key trading partner countries. 

As of December 2012, the CTF had approved 41 projects using $2.3 billion in funding, which 

attracted co-financing of $18.8 billion from recipient governments, the private sector, and the 

MDBs. Out of that total, MDB co-financing accounts for $5.8 billion, while co-financing from 

non-MDB sources amounts to $13 billion, much from the private sector. Every CTF dollar 

leverages an additional $5.5 dollars from non-MDB resources.

CTF Project Examples:

 Philippines. In the Philippines, the CTF is combining $105 million of its funds with a $300 

million investment from the Asian Development Bank (AsDB) to catalyze the market for 

 

13 FY 2012 Enacted amount does not include the transfer of $45 million from the Economic Support Fund.

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$184,63013 $185,760 $215,700
Treasury International Programs

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electric tricycles, or e-trikes. The program will improve road safety, increase take-home pay 

for 100,000 taxi drivers by reducing fuel costs, and improve health in selected cities by 

reducing pollution by 20 percent. Currently, unsafe motorcycle taxis that run on imported oil 

are a primary form of transportation in many cities in the Philippines. Since most electric 

vehicle manufacturers are focused on bringing family-sized cars to mature markets, 

technology for smaller electric vehicles has not been developed. The CTF project will 

provide 100,000 e-trikes to drivers in selected cities on a rent-to-own basis, jumpstarting a 

domestic e-trike industry and constructing vehicle charging stations.

 Turkey. The European Bank for Reconstruction and Development has used $50 million 

from the CTF to create a $500 million renewable energy and energy efficiency lending 

facility with five of Turkey’s leading banks. Overall, the program will help Turkey save 

$150 million in energy imports every year while reducing annual greenhouse gas emissions 

by an amount equal to taking 144,000 cars off the road. As of August 2012, the program had 

made 216 sub-loans, which are saving Turkish businesses money by reducing energy use.

CTF: Monitoring Performance and Measuring Results

The CTF trust fund committee is composed of an equal number of donor and developing countries. 

Accredited observers from civil society and the private sector participate actively in all trust fund 

committee discussions. All CTF investment plans, financial information and policies are made 

available to the public. 

The CTF takes results measurement and evaluation seriously. CTF projects are subject to all MDB 

monitoring and evaluation requirements and integrated into MDB results measurement systems. 

There is also a CTF specific monitoring and evaluation system using the CTF results framework 

that tracks: 

 Tons of greenhouse gas emissions reduced or avoided;

 Volume of direct finance leveraged through CTF funding;

 Installed capacity of renewable energy as a result of CTF interventions;

 Number of additional passengers using low-carbon public transport as a result of CIF 

interventions; and

 Annual energy savings as a result of CTF interventions.

An independent evaluation of the effectiveness of the CTF and SCF will be completed in 2013. Its 

principal objectives are to assess the development and organizational effectiveness of these funds

and to document experiences and lessons for the benefit of future programs.
Treasury International Programs

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Strategic Climate Fund 

(dollars in thousands)

The U.S. has pledged a total of $2 billion to the Climate Investment Funds, which include the 

Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF). As of December 2012, 

the U.S. had paid $714 million into the CTF and $200 million to the three SCF sub-funds for a 

total of $914 million.

Treasury requests $68 million for the SCF funds in FY2014. This amount is critical to keep 

funds moving through the SCF pipeline for ongoing projects. Currently, the U.S. is the only 

donor that has not yet contributed its full pledge amount to the fund. Other donors have 

contributed $1.7 billion in resources. 

SCF: 

 Is funded by donor pledges of $2.4 billion and is comprised of three programs;

 The Pilot Program for Climate Resilience (PPCR) works with 19 countries to increase 

their resilience to the environmental drivers of instability;

 The Program for Scaling-up Renewable Energy in Low-Income Countries (SREP) 

helps eight countries use renewable energy to expand energy access, stimulate 

economic growth, and reduce vulnerability to energy shocks;

 The Forest Investment Program (FIP) works with national governments, the private 

sector, indigenous people, and local communities in eight countries to reduce 

deforestation and forest degradation; and

 Has a robust project pipeline with 77 projects expected to come up for approval in 2013 

and 2014.

SCF funds benefit the U.S. by providing a single channel to promote diverse solutions to the 

myriad challenges faced by 33 countries that struggle to balance economic growth and 

environmental pressures. SCF beneficiaries range from Mexico and Caribbean countries to

countries in the Middle East, East Africa, South Asia, and the South Pacific. The SCF taps into the 

capital, personnel, technical and environmental resources, and safeguards of the MDBs, allowing

greater leverage of U.S. financial resources and keeping administrative costs low. For every dollar 

the U.S. has contributed to the SCF other donors have contributed $8.35. 

As of December 2012, the SCF had approved $409 million in projects, which has attracted over 

$1.64 billion in co-financing from recipient governments, the private sector, and the MDBs. Out 

of that total, MDB co-financing accounts for $718 million, while co-financing from non-MDB 

sources amounts to $922 million. Every SCF dollar leverages an additional $2.2 dollars from 

non-MDB resources.

 

14 FY 2012 Enacted amount does not include the transfer of $25 million from the Economic Support Fund.

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$49,90014 $50,205 $68,000
Treasury International Programs

34

SCF Project Examples: 

 Caribbean. PPCR is providing $104 million to help six countries (Dominica, Grenada, 

Haiti, Jamaica, St. Lucia, and St. Vincent and the Grenadines) improve disaster management 

in response to devastating hurricanes, storms, and flooding. According to an assessment by 

the UN’s Economic Commission for Latin America and the Caribbean, the region 

experienced $135 billion in losses from 165 disasters between 1990 and 2008, with a sharp 

rise in the frequency and severity of natural disasters in recent years. As a result of PPCR 

funding, thousands of lives can be saved and billions in economic losses avoided through 

improved planning, weather forecasting, and disaster preparedness.

 Maldives. In 2011, the Maldives spent approximately $261 million or 20 percent of its GDP 

on diesel imports. SREP investments will increase renewable energy production from 1 

percent of power generated to 16 percent. These installations will save between 10-20 

percent in the cost of electricity generation over costly diesel generators and reduce 

greenhouse gas emissions. The SREP projects will supply the people with cheaper, cleaner 

power and help the government save at least $7 million in fuel subsidies per year.

 Mexico. The FIP will use $15 million to help local communities and indigenous groups save 

forests while generating income. These communities control approximately 70 percent of 

forest areas in Mexico, but have limited access to credit to support sustainable land use 

practices that increase local incomes. FIP funding will provide a dedicated line of credit to 

help communities better manage lands through activities such as combining tree-growing 

with farming or grazing and improving native forest management. FIP funding will also 

provide communities with the technical, financial, and management skills to ensure the 

success of these projects. The program aims to create a model that can be continued on a 

commercial basis after the project is finished.

SCF: Monitoring Performance and Measuring Results

The PPCR, SREP, and FIP each have their own trust fund committees composed of an equal 

number of donor and developing countries that meet twice a year. Accredited observers from 

civil society and the private sector actively participate in all trust fund committee discussions. 

The U.S. has been a strong advocate for robust and inclusive consultation processes that involve 

all stakeholders when designing investment plans and projects. All investment plans, financial 

information and policies, are made available to the public. 

Each SCF sub-fund takes results measurement and evaluation seriously, and participating countries 

have been actively engaged in designing a system suited to their needs and the objectives of the 

fund. The PPCR framework measures whether countries have been able to strengthen the 

resilience of vulnerable communities or regions to climate impacts such as drought, floods or 

extreme weather. It also measures progress in integrating climate information into decisionmaking across government programs. The SREP framework measures increased access to clean 

energy and increased supply of renewable energy. The FIP framework measures progress toward 

sustainable management of forests and forest landscapes; institutional and legal regulatory 

frameworks that manage forests and protect the rights of local communities and indigenous 

peoples; and strengthened capacity of local communities and indigenous peoples to access 

information and participate in decision making.
Treasury International Programs

35

In addition, because SCF projects are implemented by the MDBs, they are subject to all MDB 

monitoring and evaluation requirements and are integrated into MDB results measurement 

systems. 

An independent evaluation of the effectiveness of the CTF and SCF will be completed in 2013. Its 

principal objectives are to assess the development and organizational effectiveness of these funds 

and to document experiences and lessons for the benefit of future programs.
Treasury International Programs

36

Global Environment Facility

(dollars in thousands)

Treasury requests $143.75 million for the final year of the Fifth Replenishment of the Global 

Environment Facility (GEF). The U.S. pledged $575 million over four years, yet our 

cumulative unpaid commitments to the GEF totaled $229 million at the end of FY 2012, the 

largest of any donor. 

GEF:

 Is the largest funder of projects to benefit the global environment, providing grants to 

address issues of biodiversity, clean energy, sustainable landscapes, oceans, land 

degradation, and chemicals;

 Supports innovative, cost-effective investments that can be replicated and scaled up by 

the public and private sectors; and

 Directly benefits the U.S. by: reducing instability and conflict caused by resource 

scarcities, protecting international marine resources including fish stocks; reducing 

harmful, long-lived chemicals such as mercury in U.S. air and water; conserving global 

biodiversity such as tropical rainforests and other natural areas; and developing markets 

for the export of U.S. environmental technologies.

Since 1991, the GEF has allocated $10.5 billion, supplemented by more than $51 billion in cofinancing, to fund more than 2,900 projects in 168 developing countries. Through its Small 

Grants Program, the GEF has also made more than 14,000 small grants, totaling $707 million, 

directly to civil society and community-based organizations.

Each dollar of U.S. funding is matched by over $5 in contributions from other donors. In 2012, 

for every dollar of donor funding, the GEF leveraged over $2 from implementing agencies and 

over $4.50 from the private sector, recipient governments, and other organizations.

GEF Project Examples:

 Brazil. A $15.8 million GEF contribution to the Amazon Region Protected Areas (ARPA), 

implemented by the World Bank and supported by $70 million in co-financing from the 

Brazilian government and bilateral aid agencies, will preserve an area 50 percent larger than 

the U.S. National Park System. The results are already benefitting indigenous populations 

who suffered from the loss of biodiversity and natural resources. In addition, increases in 

eco-tourism and environmental benefits such as improved water quality and reduced 

pollution will positively impact the broader community. In 2012, the Treasury Department 

awarded ARPA the inaugural Development Impact Honors Award for achieving a four-year 

decline in Brazilian deforestation while helping local populations.

 Regional/Pacific. The GEF is working in six Pacific nations to preserve the Coral Triangle

region. This region is home to more than half of the world’s coral reefs, provides the 

spawning ground for five species of commercially valuable tuna, and acts as a vital habitat 

 

15 FY 2012 Enacted amount does not include the transfer of $30 million from the Economic Support Fund

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$89,82015 $90,370 $143,750
Treasury International Programs

37

that supports the livelihoods of more than 120 million people. The GEF pledge of $72.5 

million, supported by an additional $398.9 million from the Asian Development Bank and 

other sources, will safeguard biodiversity and important fish stocks while benefiting coastal 

communities. 

 Sub-Saharan Africa. Artisanal and small-scale gold mining is among the largest 

contributors to global mercury pollution, a dangerous neurotoxin. A GEF grant of $990,000, 

supported by $2.4 million in co-financing from other aid agencies and local governments, is 

helping Mali, Senegal, and Burkina Faso – three major gold producing nations – promote 

cleaner gold production. These cleaner processes are expected to halve mercury emissions 

from gold mining, protecting the health of miners and their families. Further, because 70 

percent of mercury pollution in the U.S. is estimated to originate abroad, reduced emissions 

globally have significant health benefits for Americans.

GEF: Monitoring Performance and Measuring Results

GEF projects are designed and implemented by ten multilateral agencies, including the MDBs 

and several specialized UN agencies, including the UN Development Program, UN Environment 

Program, and the Food and Agriculture Organization. By working through other agencies, the 

GEF is able to keep its administrative costs low by avoiding duplication of staff and management 

systems and processes, and leverage expertise and financial resources. The cost-effectiveness of 

the GEF translates to more resources being devoted to programming and results, achieving a higher 

return on U.S. investment. 

To focus and track results, all GEF projects are designed to feed into the GEF’s results framework 

that aggregates results across the GEF portfolio. The GEF Secretariat reports regularly to the 

GEF Council – the oversight body in which the U.S. participates – on progress against the GEF’s 

key performance indicators and in implementing institutional reforms. For the current 

replenishment period (FY 2011-2014), the GEF is successfully implementing agreed upon

reforms, including streamlining efforts that have decreased project cycle length by 50 percent in 

the past five years and reduced agency implementation costs without sacrificing due diligence. 

The U.S., as one of the largest contributors to the GEF, has used its position to advocate 

successfully for strong fiduciary, environmental, and social safeguards while improving 

efficiency in the GEF’s operations. A U.S. representative has also served on several important 

GEF committees, including the Chief Executive Officer (CEO) selection committee that in 2012 

helped elect a new GEF CEO to a four-year term. 
Treasury International Programs

39

Debt Relief

Multilateral Debt Relief Initiative

(dollars in thousands)

Treasury requests $175.3 million to help cover the cost of the U.S. commitment to the 

Multilateral Debt Relief Initiative (MDRI) under the current replenishment cycles at the World 

Bank Group’s International Development Association (IDA) and the African Development Fund 

(AfDF).

MDRI:

 Provides 100 percent cancellation of IDA and AfDF eligible debt for countries that reach 

completion point under the Heavily Indebted Poor Countries (HIPC) initiative; and

 Allows beneficiary countries to increase poverty reduction expenditures in areas such as 

basic health, education, and rural development.

The U.S. was a leading advocate for MDRI and faced considerable opposition from other donors 

who expressed concern that, without compensation, the additional debt forgiveness would create 

a financing hole for IDA and AfDF over time. As a compromise, donors agreed to compensate 

IDA and the AfDF for lost reflows on a dollar for dollar basis. Insufficient funding for MDRI 

has the same effect as a direct cut to IDA or AfDF, meaning that the amount committed by these 

two institutions for current programs would be reduced on a dollar for dollar basis.

Total debt relief committed under the HIPC Initiative and the MDRI amounts to around $127 

billion in nominal terms, of which about $51 billion is associated with the MDRI. These 

initiatives, together with associated debt relief efforts, reduces the debt burden for participating 

countries by over 90 percent as compared to the debt levels existing prior to entering the HIPC 

process. As a result, these countries have been able to increase poverty-reducing expenditures by 

an average of more than three percentage points of GDP over the past ten years.

IDA and the AfDF calculate each donor’s commitment at the start of each three-year 

replenishment cycle according to an agreed burden-sharing percentage. The U.S. share for IDA 

is 20.12 percent and for AfDF is 11.77 percent. Each donor’s commitment to MDRI must be 

met within the three-year replenishment period in order to avoid a negative impact on the 

institution’s commitment authority. 

The U.S. MDRI commitment is $475 million to IDA-16 and $61.5 million to AfDF-12. A 

significant portion of the U.S. MDRI commitment to IDA-16 and AfDF-12 will be met using 

“early encashment credits”, which IDA and AfDF award when a donor makes replenishment 

contributions faster than the agreed upon schedule, which is usually nine years. These credits

cannot, however, cover the total U.S. MDRI commitment, and their value is dependent upon 

Treasury’s ability to secure funds for regular IDA and AfDF replenishments.

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

International Development Association $167,000 $168,022 $145,300

African Development Fund $7,500 $7,546 $30,000

TOTAL $174,500 $175,568 $175,300
Treasury International Programs

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Of the total request for MDRI, Treasury requests $145.3 million for payment to IDA, which will 

be used to satisfy MDRI commitments made by the United States, including through generation 

of early encashment credits. Of the $145.3 million, up to $59.3 million will be paid to IDA to be 

applied directly to the U.S. share of the MDRI commitment for IDA-16. The remainder, at least 

$86 million, will be applied towards IDA arrears. Executing the payment in this manner will 

have the benefit of fully satisfying our remaining commitment to the IDA-16 replenishment 

while generating at least $91 million in encashment credits that will be applied toward the U.S. 

IDA-16 MDRI commitment. This approach is consistent with the use of resources appropriated 

for IDA-16 MDRI in FY 2012.

Treasury proposes to apply $30 million directly to AfDF MDRI, thereby fully satisfying our 

remaining commitment to MDRI for AfDF-12. Unlike IDA, these funds will not be applied 

toward the AfDF-12 replenishment, as doing so will not generate additional encashment credits. 

The FY 2014 Budget includes revised MDRI appropriations language to clarify the manner in 

which these payments will be executed without expanding existing authorities.

Country Examples:

 Liberia. Prior to entering into the HIPC/MDRI debt relief process, Liberia had the highest 

debt-to-GDP ratio in the world. Having reached the HIPC completion point in 2010, it now 

has among the lowest. The International Monetary Fund (IMF) estimates real GDP growth 

of almost nine percent in 2012 and expects similar results in 2013. The share of education 

spending in relation to GDP has increased by more than 50 percent, though it is still low in 

comparison to other sub-Saharan countries. The budgetary allocation to the health sector has 

roughly doubled since 2007, though delivering the services remains a challenge.

 Afghanistan. To reach its January 2010 HIPC completion point, Afghanistan had to carry 

out several difficult reforms including adoption of mining regulations that deter corruption, 

reform of the public pension system, and implementation of an external audit of the 

government’s budget. The $1.6 billion in debt relief provided by creditors will help the 

government finance critical poverty-related spending for primary education, basic health 

services, and rural development. 

 Tanzania. Tanzania was one of the first countries to complete the debt relief process. Since 

reaching the HIPC completion point in November 2001, the primary school completion rate 

has jumped from 55 percent to 100 percent, the under-five mortality rate has declined by 

almost 40 percent, and per capita income has nearly doubled. Tanzania is on track to meet 

the Millennium Development Goals (MDGs) related to combating HIV/AIDS and reducing 

infant and under-five mortality.

 Ghana. Ghana reached the HIPC completion point in July 2004. Since completing the debt 

relief process, expenditures on poverty reduction have increased five-fold and have produced 

significant results. The under-five mortality rate has dropped by a third and maternal 

mortality rates have seen similar declines. The GDP growth has remained strong, even 

during the economic crisis.

 Honduras. Honduras reached the HIPC completion point in April 2005. Per capita income 

has increased 40 percent since then, and the Center for Global Development rates the country 

as the best performer on the MDGs among low-income countries. Honduras is expected to 

reach or surpass every MDG with the exception of reducing maternal mortality by 75 

percent.
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Technical Assistance

Office of Technical Assistance

(dollars in thousands)

Treasury’s Office of Technical Assistance (OTA) is a small program that supports the 

achievement of big objectives. Effective financial management is a core element of a wellfunctioning state. It fosters economic growth, enables a government to provide better services 

for its citizens, and reduces dependency on foreign aid. For over 20 years, OTA has helped 

developing countries build efficient revenue collection, well-planned and executed budgets, 

judicious debt management, sound banking systems, and strong controls to combat corruption 

and other economic crimes. OTA advisors are recognized as experts in these disciplines. They 

work side-by-side with colleagues in central banks and finance ministries in Asia, the Middle 

East, Africa, and Latin America and the Caribbean. Projects are centered on providing countries 

with the knowledge and skills required to move towards financial self-sufficiency—including the 

capability to generate and better manage their own government finances—thereby reducing 

dependence on international aid. OTA supports host-country designed and mutually agreed upon 

objectives that help to safeguard scarce public resources, finance critical services, and achieve 

sustainable and tangible outcomes. The program provides significant, cost-effective value for 

U.S. development, foreign policy, and national security objectives.

The President’s FY 2014 budget request for OTA provides $23.5 million to strengthen economic 

and financial governance in fragile and developing countries where assistance is needed and 

where counterparts use such assistance effectively. The request will support OTA’s work in 

priority areas, including infrastructure finance and increasing access to financial services. It 

continues the program’s investment in key Administration priorities, such as the Partnership for 

Growth countries of Philippines, El Salvador, Ghana, and Tanzania.

OTA Project Examples: 

 Regional/Africa. OTA is providing assistance to East African Community (EAC) member 

countries in a range of activities, including development of government securities markets, 

banking supervision, infrastructure finance, and revenue mobilization. OTA is committed 

both to providing additional assistance to further develop the national payments systems, and 

to expanding bank supervision and financial inclusion, which are integral parts of the EAC 

convergence strategy.

 Liberia. OTA supported the Department of Revenue’s effort to crack down on corruption 

and repair its public image. With OTA’s help, the tax administration developed a code of 

conduct and provided ethics training for all employees. Tax enforcement officials founded an 

internal investigation unit that developed operating procedures, expanded staff, identified 

$513,000 in revenue losses, and provided evidence that led to 16 employees being 

disciplined.

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

$27,000 $27,156 $23,500
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42

 Costa Rica. Decaying and substandard infrastructure is a key roadblock for developing 

countries. OTA is building capacity in concession ministries to handle complex tasks such as 

developing the legal framework for concessions, designing tenders, assessing the debt and 

budget implications of concessions, and managing long-term contracts for construction 

projects. In January 2012, a public-private partnership facilitated by OTA opened a $35 

million airport terminal in the tourist gateway of Liberia City in northwestern Costa Rica.

 Bosnia. Bosnia issued government securities on a competitive basis for the first time, the 

culmination of several years of OTA work. OTA worked with Bosnia to craft laws and 

regulations, develop the skills of local staff to analyze governmental cash needs, and create a 

predictable and orderly issuance calendar. In Bosnia, the funds will be used to pay 

obligations to citizens relating to frozen currency accounts from the Yugoslav era, resulting 

in no net increase in the debt burden of the country. Approximately 90 percent of the 

issuance was purchased by the banking sector, insurance companies, and investment funds.

OTA: Monitoring Performance and Measuring Results

OTA maintains a robust system to monitor and evaluate program performance – from project 

initiation, through execution, to post-project evaluation. Each project begins with a signed 

bilateral terms of reference agreement between OTA and the relevant foreign ministry or central 

bank that lays out the high-level aims of the engagement. This is followed by a detailed work 

plan specifying the activities to support those aims. Advisors provide monthly reports and 

occasional trip reports to Treasury leadership and other stakeholders on the execution of the 

work plan, including progress against project objectives. These reports are validated through 

regular, on-site project reviews conducted by OTA management. Post-project reports provide 

evaluations of results and accomplishments of completed technical assistance and are used as a 

basis to improve the planning and execution of future projects.

In addition, each year OTA evaluates the level of “traction” (the degree to which changes in 

behavior occur—e.g., foreign officials are taking an active and participative role in pursuing 

change, interim deliverables are on or ahead of schedule) and “impact” (the extent to which the 

objectives are actually achieved) for each technical assistance project. The level of traction and 

impact is measured by OTA advisors and headquarters staff according to specific indicators that 

are relevant to each of the five OTA financial disciplines (revenue policy and administration, 

budget and financial accountability, debt issuance and management, banking and financial 

services, and economic crimes). The program also utilizes a customer survey instrument to 

collect information directly from country counterparts who have first-hand knowledge of OTA 

engagements. 

OTA seeks continual improvement in operational effectiveness and efficiency. The program is 

currently in the second year of a multi-year effort to modernize its internal business processes, 

including critical administrative functions such as contracting and procurement, logistical 

support, and financial management. As part of this effort, OTA is upgrading its financial 

management infrastructure and related processes to ensure that program resources are 

maximized. These efforts will ensure that OTA continues to provide, timely, accurate, and 

reliable program information to its stakeholders, including information as part of the President’s 

Open Government Initiative and the newly-created Foreign Assistance Dashboard.
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Transition Fund 

Deauville Partnership Transition Fund 

(dollars in thousands)

Treasury requests $5 million for the Deauville Partnership Transition Fund, a multi-donor trust 

fund administered by the World Bank. This is a new request to assist members of the Deauville 

Partnership with Arab Countries in Transition (currently Egypt, Tunisia, Jordan, Morocco, 

Libya, and Yemen). 

The Transition Fund represents a key component of broader efforts to advance the Deauville 

Partnership. This initiative brings together G-8 countries, Gulf and regional partners, and 

international and regional financial institutions to work in partnership with the countries 

undergoing historic political and social transitions in the Middle East and North Africa. 

As these countries go through transformations and address their diverse economic challenges, the 

Transition Fund will help promote a broad reform agenda and support inclusive development. 

The Transition Fund provides small grants to countries for diagnostic analyses, technical advice, 

and initial implementation of targeted policy initiatives and reforms that demonstrate strong 

results. 

As Chair of the Deauville Partnership in 2012, the U.S. worked closely with the World Bank to 

design and negotiate the structure of the Transition Fund. The U.S. was also instrumental in 

mobilizing financial support from G-8 and Gulf donors. A wide range of countries has already 

provided or committed to provide funding, including the United Kingdom, Saudi Arabia, 

Canada, France, Japan, Russia, Kuwait, and Qatar. 

The agreed contribution from the U.S. is 20 percent of total donor contributions to the Transition 

Fund, or up to $50 million of an anticipated $250 million, over several years. The 

Administration plans to meet this commitment with a combination of funding from Treasury and 

Department of State/USAID assistance accounts.

Transition Fund Projects

The Transition Fund aims to improve the lives of citizens in Arab transition countries by 

providing small grants for technical assistance and early implementation of projects in the areas 

of (1) economic governance; (2) trade, investment, and integration; and (3) inclusive 

development and job creation. Partnership country governments can propose individual projects 

to the Transition Fund Steering Committee in conjunction with an international or regional 

financial institution (IFI). The Steering Committee, consisting of all contributing and transition 

countries, reviews and approves projects with input from participating IFIs. Funds are 

transferred to the IFI, which oversees and monitors execution of the project. 

The Deauville Partnership officially launched the Transition Fund on October 12, 2012. Several 

donors – including the United Kingdom, France, and Canada – immediately provided 

contributions. To date, the Transition Fund has approved 12 projects worth about $47 million 

for Jordan, Egypt, Morocco, Tunisia, and Yemen. These projects address U.S. development and 

FY 2012

Enacted

FY 2013

CR Rate

FY 2014

Request

— — $5,000
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44

national security priorities in the region, including support for job creation, strengthening civil 

society, targeting of social safety nets, and regional trade facilitation. Examples of specific 

projects include: 

 Jordan. Establish a new national database of low-income families and launch an outreach 

program necessary to implement a new social safety net, in support of energy subsidy 

reforms under Jordan’s International Monetary Fund program; support technical capacity 

building for Jordan’s water sector to help advance the Jordanian Water Authority’s 

regulatory framework to lay the foundation for involvement of the private sector in the 

management of waste and wastewater services.

 Tunisia. Establish an Investment Authority to increase investments in the country, creating 

much needed jobs and boosting economic growth.

 Morocco. Develop a new governance framework based on public consultation, transparent 

budgets, and fiscal decentralization.

 Yemen. Enhance the government’s partnership with civil society organizations in 

development projects, which will support Yemen’s national reconciliation process and 

development objectives.

In many cases, the projects would unlock larger amounts of multilateral and bilateral assistance 

by addressing a key bottleneck or constraint on the part of the government. 

Transition Fund: Monitoring Performance and Measuring Results

The Transition Fund was established in line with the best practices and lessons learned from past 

experience with multi-donor trust funds administered by the World Bank. The Transition Fund 

will be governed on a non-objection basis by the Steering Committee, which comprises all donor 

and transition countries. The World Bank, which has extensive experience with trust funds, will 

serve as trustee and the administrator of the Transition Fund. In both roles, the World Bank 

operates under World Bank management policies and procedures.

The reporting system established for the Transition Fund will provide information on Fund 

results, the outcomes of individual projects, and overall portfolio performance including:

 A robust results framework for every project, which is required for Steering Committee 

approval of the project;

 Monitoring and evaluating reports, submitted by the IFIs, at the project level every six 

months during implementation; 

 An annual report detailing the financial and technical performance of each project

approved by the Transition Fund;

 Semi-annual reports and an annual audit report to the Steering Committee on the 

financial status of the Transition Fund;

 A mid-term review of the Transition Fund after 18 months of operation and an

independent evaluation at completion to assess the quality of implementation and results.

All project proposals and biannual progress reports will be posted on the Transition Fund’s 

website (www.menatransitionfund.org).
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International Monetary Programs

International Monetary Fund

The International Monetary Fund (IMF) is responsible for promoting the stability of the 

international monetary and financial system. Its job is to promote economic growth and stability, 

reduce poverty, and help prevent and resolve financial crises when they occur. Since 2008, the 

IMF has been at the center of the global crisis response efforts, helping mitigate the impact of the 

crisis in its member countries and prevent contagion, while advancing U.S. strategic interests 

abroad.

U.S. transactions with the IMF are exchanges of equivalent monetary assets, which do not result 

in net budgetary outlays. When the United States provides resources to the IMF, the United 

States simultaneously receives an equal, offsetting claim in the form of an increase in the U.S. 

reserve position in the IMF. The U.S. reserve position in the IMF is an interest-bearing and 

liquid asset, held as part of U.S. international reserves and available to the United States on 

demand. As the largest economy and shareholder in the IMF, the United States not only shapes 

IMF policy direction, but also leverages resources from other countries; for every dollar the 

United States contributes to the IMF, other countries provide four dollars more.

In 2010, G-20 Leaders and the IMF membership decided on a set of quota and governance 

reforms designed to enhance IMF effectiveness. The United States successfully achieved its 

negotiating priorities in this process: (1) a U.S. quota increase with a simultaneous and 

equivalent corresponding roll back in the U.S. participation in the IMF’s New Arrangements to 

Borrow (NAB); and, (2) the preservation of U.S. veto power in the IMF.

The Administration now seeks legislation to reduce U.S. participation in the New Arrangements 

to Borrow (NAB) by SDR 40,871,800,000 (approximately $63 billion as of December 28, 2012)

and increase the size of the U.S. quota in the IMF by an equal amount, for no change in the 

overall U.S. financial commitment to the IMF. Legislation is also necessary to authorize the 

United States to accept an amendment to the IMF Articles of Agreement that will facilitate

changes in the composition of the IMF Executive Board while preserving the U.S. seat on the 

Board. 

The required authorization requests, including for mandatory funding for the IMF quota increase 

and NAB rollback, will be submitted separately. The proposal has an assumed enactment date in 

fiscal year 2013. The net cost of the proposed IMF legislation is zero, both in terms of budget 

authority and outlays.

The legislation is essential to preserve the U.S. leadership and veto position in the IMF. Overall 

U.S. participation and exposure to the IMF will not change. 

Implementation of the IMF quota and governance reforms is necessary to prevent a loss of U.S. 

influence in the IMF. The reforms restore the primacy of the IMF’s quota-based capital structure 

in which the United States has the largest share. As the IMF’s quota resources have been drawn 

down in response to financial crises, the IMF has relied disproportionately on bilateral resources 

borrowed from other countries, which increases these countries’ influence and potentially

undermines U.S. interests around the world. U.S. support for these reforms reinforces the central 

position of the IMF in the international monetary system at a time when emerging economies 

explore establishing new and parallel financial institutions. The IMF legislation will prevent a 

loss of U.S. influence in international financial arrangements. 
Treasury International Programs

46

A well-resourced and effective IMF is a good deal for America, for the near term health of the 

U.S. economy, for the prosperity of American workers, and for our strategic interests. 

As the world’s first responder to financial crises, the IMF helps protect the U.S. recovery and 

promotes increased global growth and stability, which supports U.S. jobs and exports, foreign 

direct investment (FDI) in the U.S., our financial markets and our economic health. Continued 

U.S. support to help ensure the IMF has the tools and resources it needs to do its job is critical 

for U.S. economic health and prosperity. Without IMF support, countries may experience 

financial failures that reduce demand for U.S. exports and lower FDI in the United States, 

threatening millions of jobs. U.S. exports accounted for 14 percent of U.S. GDP in 2011 – even 

more in Louisiana, Texas, Utah, Vermont, and Washington – and American export industries 

provide 9.7 million jobs to American workers. FDI supports 2 million manufacturing jobs, and 

over the last ten years, majority-owned U.S. affiliates of foreign companies have employed 

between 5-6 million workers, who receive 30 percent higher pay than non-FDI supported jobs. 

The IMF works to prevent financial instability abroad (e.g., in Europe), which causes U.S. stock 

market declines, hurting American household and 401K retirement savings. 

The IMF is a force multiplier for U.S. strategic interests and makes the U.S. more secure. U.S. 

influence leveraged through the IMF was critical in encouraging Europe to build a firewall and 

provide the lion’s share of the financing to stabilize the euro area crisis. The IMF is now 

working to anchor economic stability in the Middle East – in Egypt, Jordan, Morocco, and 

Yemen – providing policy advice and financial support to secure the political gains of the Arab 

Spring. Economic stagnation and poverty can become a seedbed for instability and terrorism. 

The IMF helps countries implement sound economic policies to boost growth, create jobs, raise 

living standards, and lift people out of poverty.

The IMF plays a critical role in assisting low-income countries (LICs) in achieving 

macroeconomic stability, a necessary part of the agenda for poverty reduction and higher longterm growth. 

With strong U.S. support, the IMF has overhauled its concessional lending instruments, made 

available substantially more resources to support LICs, and extended interest rate relief (zero 

interest) on all concessional loans through the end of 2014. The IMF’s concessional financing 

arrangements have helped to support low-income countries through the severe impact of the 

global financial crisis. For example, from the end of 2008 through March 2013, the IMF has 

provided more than $9 billion in concessional financing to LICs through the Poverty Reduction 

and Growth Trust (PRGT), the IMF’s concessional lending vehicle, which is funded separately 

from the IMF’s General Resources Account (i.e., quotas and NAB).

In difficult environments, the IMF is helping governments to protect and even increase social 

spending in ways that are both fiscally sustainable and cost-effective. As part of its IMF 

program, Kenya has expanded targeted programs to aid orphans, the elderly, and other 

vulnerable people. The IMF is helping Djibouti achieve needed fiscal consolidation while 

promoting measures to safeguard and better target increased social spending of up to 6 percent of 

GDP. On average, countries with IMF programs increase spending for education by about 0.8 

percentage points of GDP and for health by about 1 percentage point of GDP over a five-year 

period. The IMF has enhanced its ability to respond to countries hit by natural disasters. In 

2010, the IMF established the Post-Catastrophe Debt Relief Trust (PCDR) from the IMF’s own 

internal resources for LICs, which allowed the IMF to eliminate Haiti’s entire outstanding debt 

to the IMF to help Haiti rebuild its economy and infrastructure after the devastating earthquake.
Treasury International Programs

47

G-20 Leaders and the IMF membership committed to implement the quota and governance 

reforms by October 2012. The vast majority of the IMF membership has now acted, and only 

U.S. acceptance is necessary for these important reforms to enter into effect. Honoring our 

commitments will preserve the U.S. leadership position, our veto power, and promote the 

continuity of U.S. interests around the world.

The IMF is a safe and smart investment, with a rock solid balance sheet including reserves and 

gold holdings that exceed total IMF credit outstanding (about $140 billion). In addition, the IMF 

is recognized by its entire membership as the preferred creditor, with the unique ability to set 

conditions to assure repayment. The IMF has never defaulted on any U.S. reserve claims on the 

IMF since its inception nearly 70 years ago.