to promote a sound and open world economy and a
stable international financial system;
(2) while the international financial system has
evolved significantly since the IMF was founded fifty
years ago, its core mission remains focused on pro-
viding advice on macroeconomic and exchange rate
policy and highly conditional financial assistance, in-
cluding appropriate economic and governance re-
forms, to countries facing balance of payments or li-
quidity problems;
(3) the United States, as the leading power of
the post-cold-war world, has a greater interest than
any other country in a strengthened IMF that
multilateralizes the financial support for ongoing
economic reforms in countries important to United
States interests and that can respond to threats to
the international financial system so that the United
States does not end up serving as the world’s lender
of last resort;
(4) the United States is the only country with
veto power over major IMF decisions;
(5) to sustain its capabilities, the IMF needs to
sustain its strength relative to a rapidly expanding
global economy characterized by exponential growth
of global capital markets;
(6) the United States financial commitment to
the IMF leverages several times as much from other
countries, and its general resource financing is not
scored as a budgetary outlay; and
(7) the ongoing currency and banking crisis in
the Far East has affected United States financial
markets and may result in a decline in United
States economic growth by as much as one and one-
half percent, and the United States has a vested eco-
nomic and national security interest in utilizing the
IMF and other multilateral mechanisms to help sta-
bilize certain Asian economies.
TITLE I—INTERNATIONAL
MONETARY FUND
SEC. 101. PARTICIPATION IN QUOTA INCREASE.
The Bretton Woods Agreements Act (22 U.S.C. 286–
286mm) is amended by adding at the end the following:
‘‘SEC. 61. QUOTA INCREASE.
‘‘(a) IN GENERAL.—The United States Governor of
the Fund may consent to an increase in the quota of the
United States in the Fund equivalent to 10,622,500,000
Special Drawing Rights.
‘‘(b) SUBJECT TO APPROPRIATIONS.—The authority
provided by subsection (a) shall be effective only to such
extent or in such amounts as are provided in advance in
appropriations Acts.’’.
TITLE II—NEW ARRANGEMENTS
TO BORROW
SEC. 201. NEW ARRANGEMENTS TO BORROW.
Section 17 of the Bretton Woods Agreements Act (22
U.S.C. 286e–2 et seq.) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and February 24, 1983’’
and inserting ‘‘February 24, 1983, and Janu-
ary 27, 1997’’; and
(B) by striking ‘‘4,250,000,000’’ and in-
serting ‘‘6,712,000,000’’;
(2) 
in 
subsection 
(b), 
by 
striking
‘‘4,250,000,000’’ and inserting ‘‘6,712,000,000’’;
and
(3) in subsection (d)—
(A) by inserting ‘‘or the Decision of Janu-
ary 27, 1997,’’ after ‘‘February 24, 1983,’’;
and
(B) by inserting ‘‘or the New Arrange-
ments to Borrow, as applicable’’ before the pe-
riod at the end.
TITLE III—POLICY PROVISIONS
SEC. 301. ADVOCACY OF CERTAIN POLICIES.
(a) IN GENERAL.—Title XVI of the International Fi-
nancial Institutions Act (22 U.S.C. 262p–262p–5) is
amended—
(1) by redesignating section 1622 as section
1624;
(2) by redesignating section 1621 (as added by
section 327 of the Antiterrorism and Effective
Death Penalty Act of 1996; 22 U.S.C. 262p–4q) as
section 1622, and by relocating such section so that
it appears after section 1621 (as added by section
526(e) of Foreign Operations, Export Financing,
and Related Programs Supplemental Appropriations
Act, 1994; 22 U.S.C. 262p–4p): and
(3) by inserting after section 1622 (as so redes-
ignated by paragraph (2) of this subsection) the fol-
lowing:
‘‘SEC. 1623. ADVOCACY OF CERTAIN POLICIES.
‘‘The Secretary of the Treasury shall instruct the
United States Executive Director of the International
Monetary Fund to use the voice and vote of the Executive
Director to do the following:
‘‘(1) Make the International Monetary Fund a
more effective mechanism for promoting market-ori-
ented reform, trade liberalization, and economic
growth through—
‘‘(A) liberalizing the pricing, trade, invest-
ments, and exchange rate regimes of countries
to open countries to the competitive forces of
the global economy;
‘‘(B) privatizing industry to eliminate gov-
ernment monopolies, close loss-making enter-
prises, and reduce government control over the
factors of production; and
‘‘(C) economic deregulation by eliminating
red tape and establishing a foundation to sup-
port private contract rights.
‘‘(2) Make the International Monetary Fund a
more effective mechanism, in concert with appro-
priate international authorities and the International
Bank for Reconstruction and Development, to
strengthen financial systems in developing countries
and encourage the adoption of sound banking prin-
ciples and practices.
‘‘(3) Ensure that the International Monetary
Fund does not become a lender of last resort for pri-
vate investors, including commercial banks, and ac-
cordingly should advocate policies which include—
‘‘(A) strengthening crisis prevention and
early warning signals through improved and
more effective surveillance of the national eco-
nomic policies and financial market develop-
ments of countries, and fuller disclosure of such
information to market participants;
‘‘(B) accelerating work on strengthening fi-
nancial systems in emerging market economies
so as to reduce the risk of financial crises;
‘‘(C) consideration of provisions in debt
contracts that would foster dialogue and con-
sultation between a sovereign debtor and its
private creditors, and among those creditors;
‘‘(D) consideration by the Executive Board
of the International Monetary Fund of extend-
ing the scope of its policy on lending to mem-
bers in arrears so as to encourage and expedite
such a dialogue and consultation;
‘‘(E) intensified consideration of mecha-
nisms to facilitate orderly workout mechanisms
for countries experiencing debt or liquidity cri-
ses; and
‘‘(F) consideration of establishing ad hoc
or formal linkages between the provision of offi-
cial financing to countries experiencing a finan-
cial crisis and the willingness of market partici-
pants to meaningfully participate in any sta-
bilization effort led by the International Mone-
tary Fund.
‘‘(4) Make the International Monetary Fund a
more effective mechanism for promoting good gov-
ernance principles within recipient countries by fos-
tering structural reforms that reduce opportunities
for corruption and bribery.
‘‘(5) Ensure that International Monetary Fund
programs and assistance are structured so that gov-
ernments which draw on the International Monetary
Fund channel public funds away from unproductive
purposes, including excessive military spending, and
toward investment in human and physical capital as
well as social programs to protect the neediest and
promote social equity.
‘‘(6) Ensure that International Monetary Fund
policies and procedures endeavor to support inter-
nationally recognized worker rights such as freedom
to join an independent trade union and bargain col-
lectively, including by—
‘‘(A) considering labor market policy in the
context of achieving macroeconomic stability
and providing the foundation for sustainable
growth;
‘‘(B) further enhancing collaboration be-
tween the International Monetary Fund and the
International Labor Organization; and
‘‘(C) encouraging recipient governments
not to discriminate against guest workers.
‘‘(7) Ensure that International Monetary Fund
programs and assistance are structured so as not to
exacerbate or precipitate ethnic strife within a recip-
ient country.
‘‘(8) Ensure that the International Monetary
Fund recognizes that macroeconomic developments
and policies can affect and be affected by environ-
mental conditions and policies, including by working
independently and with the multilateral development
banks to encourage countries to correct market fail-
ures and to adopt appropriate environmental policies
in support of macroeconomic stability and sustain-
able development.
‘‘(9) Facilitate greater International Monetary
Fund transparency, including by enhancing acces-
sibility of the International Monetary Fund and its
staff, fostering a more open release policy toward
working papers, past evaluations, and other Inter-
national Monetary Fund documents; seeking to pub-
lish all letters of intent to the International Mone-
tary Fund, and establishing a more open release pol-
icy regarding Article IV consultations.
‘‘(10) Facilitate greater International Monetary
Fund accountability and enhance International Mon-
etary Fund self-evaluation by establishing an oper-
ations evaluation department modeled on the experi-
ence of the International Bank for Reconstruction
and Development, guided by such key principles as
usefulness, credibility, transparency, and independ-
ence.
‘‘(11) Coordinate with the International Bank
for Reconstruction and Development and other
international financial institutions (as defined in sec-
tion 1701(c)(2)) in advancing credit to small busi-
nesses, including microenterprise lending.’’.
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