Inter-American Development Bank General Capital Increase Act of 2021
Bill: S.616 | Sponsor: Sen. Menendez, Robert (D-NJ)
Policy area: International Affairs

Summary:
Inter-American Development Bank General Capital Increase Act of 2021
This bill requires the President to support and coordinate diplomatic engagement to secure a 10th general capital increase for the Inter-American Development Bank (IDB) and to support the creation of an environmental fund and financing facility at the IDB. The bill also authorizes the U.S. Governor of the IDB to vote in favor an $80 billion increase in the capital stock of the IDB and to subscribe on behalf of the United States to additional shares of this capital stock.

To authorize the tenth general capital increase for the Inter-American 
 Development Bank and to strengthen recovery efforts in Latin America 
   and the Caribbean related to the COVID-19 pandemic, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Inter-American Development Bank 
General Capital Increase Act of 2021''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The region of Latin America and the Caribbean has 
        suffered severely from the coronavirus disease 2019 (commonly 
        referred to as ``COVID-19''), with more than 18,000,000 
        confirmed cases since February 2020, according to the Inter-
        American Development Bank.
            (2) In 2020, as a result of COVID-19, gross domestic 
        product per capita fell 8.5 percent across Latin America and 
        the Caribbean, entirely reversing steady advancements in 
        regional gross domestic product per capita since 2010, 
        according to the Economic Commission for Latin America and the 
        Caribbean.
            (3) Initial assessments by the Economic Commission for 
        Latin America and the Caribbean indicate that, throughout Latin 
        America and the Caribbean, the COVID-19 pandemic will have--
                    (A) pushed an additional 45,500,000 people into 
                poverty, increasing the total number of people living 
                in poverty from 185,500,000 to 230,900,000, or 
                approximately 37.3 percent of the Latin American and 
                Caribbean population, in 2020; and
                    (B) caused the total number of individuals living 
                in extreme poverty to increase by 28,500,000 from 
                67,700,000 to 96,200,000, or approximately 15.5 percent 
                of the Latin American and Caribbean population, in 
                2020.
            (4) The Inter-American Development Bank estimated in May 
        2020 that 17,000,000 formal jobs would be lost as a result of 
        the pandemic, increasing the share of jobs in informal sectors 
        of the region's economies to 62 percent. September 2020 
        findings from the International Labour Organization noted that 
        34,000,000 workers across 9 countries in the region lost their 
        jobs in the first half of 2020.
            (5) The pandemic also has complicated the humanitarian and 
        development challenges countries across Latin America and the 
        Caribbean face as hosts to more than 4,300,000 Venezuelan 
        refugees and migrants, prompting the Inter-American Development 
        Bank to launch a migration initiative that aims to provide 
        $85,000,000 in grants and leverage investments of 
        $1,100,000,000 in social protection, health, education, and 
        employment.
            (6) The pandemic has severely disrupted education systems 
        across Latin America and the Caribbean because of a lack of 
        equipment and pedagogical tools required for effective remote 
        schooling. According to data compiled by the United Nations 
        Educational, Scientific and Cultural Organization and the 
        Inter-American Development Bank, fewer than 30 percent of low-
        income families impacted by decisions to halt in-person classes 
        have access to a computer and only around 60 percent of 
        secondary school teachers have the skills needed for virtual 
        instruction.
            (7) Countries across Latin America and the Caribbean 
        continue to face enduring economic challenges, including 
        persistent inequality, high levels of tax evasion and 
        avoidance, and elevated debt levels.
            (8) The stability, sustainable development, and inclusive 
        growth of economies in Latin America and the Caribbean is in 
        the national interest of the United States, as the region 
        accounts for 21.7 percent of United States trade in goods in 
        2019, according to the Economic Commission for Latin America 
        and the Caribbean.
            (9) The Inter-American Development Bank is the world's 
        oldest and largest regional development bank, and has worked 
        continuously since 1959 to foster economic, social, and 
        institutional development in Latin America and the Caribbean.
            (10) The Inter-American Development Bank is uniquely 
        positioned to advance post-pandemic recovery efforts and to 
        mitigate the social and economic impacts of the pandemic. As 
        early as March 2020, the Inter-American Development Bank 
        announced the allotment of up to $12,000,000,000 toward 
        immediate public health responses, efforts to revitalize social 
        safety nets for vulnerable populations, and strategic economic 
        productivity and employment initiatives.
            (11) The 48 borrowing and non-borrowing member countries of 
        the Inter-American Development Bank last agreed to a ninth 
        general capital increase as part of the Bank's annual meeting 
        on March 20-22, 2010.
            (12) Under the Coronavirus Aid, Relief, and Economic 
        Security Act (Public Law 116-136; 134 Stat. 281) (commonly 
        referred to as the ``CARES Act''), enacted on March 27, 2020, 
        Congress approved capital stock increases for the International 
        Finance Corporation and the African Development Bank to 
        strengthen the ``ability of foreign countries to prevent, 
        prepare for, and respond to coronavirus and to the adverse 
        economic impacts of coronavirus''.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the spread of SARS-CoV-2, the virus that causes COVID-
        19, has had a significant impact on economic, social, and 
        humanitarian conditions throughout Latin America and the 
        Caribbean;
            (2) the Inter-American Development Bank is the preeminent 
        multilateral development bank dedicated to regional economic 
        and social development and the betterment of lives across Latin 
        America and the Caribbean;
            (3) the Bank has played an integral role in supporting 
        member countries with the coordination and implementation of 
        policies to mitigate the effects of the COVID-19 pandemic, the 
        Venezuelan refugee and migration crisis, and other crises in 
        the Western Hemisphere;
            (4) a capital increase for the Bank would greatly increase 
        its capacity to provide financing, institutional knowledge, and 
        technical support to foster recovery and inclusion initiatives 
        between regional governments, private sector entities, and 
        international organizations; and
            (5) the United States, as a founding member of the Bank, 
        should support a capital stock increase to ensure the Bank is 
        prepared to offer additional support to member countries 
        severely impacted by the COVID-19 pandemic and other crises.

SEC. 4. TENTH GENERAL CAPITAL INCREASE.

    (a) Support for a General Capital Increase.--The President shall 
take steps to support a tenth general capital increase for the Inter-
American Development Bank.
    (b) Diplomatic Engagement.--The President shall advance diplomatic 
engagement to build support among member countries of the Bank for a 
tenth general capital increase for the Bank in order to strengthen the 
capacity of the Bank--
            (1) to support Latin American and Caribbean countries in 
        their efforts to address the COVID-19 pandemic and the related 
        economic impact; and
            (2) to advance inclusive economic and social development in 
        the Americas.
    (c) Progress Report.--Not later than 45 days after the date of the 
enactment of this Act, the President shall submit to the Committee on 
Foreign Relations of the Senate and the Committee on Financial Services 
of the House of Representatives a report detailing efforts to carry out 
subsections (a) and (b).
    (d) Tenth Capital Increase.--The Inter-American Development Bank 
Act (22 U.S.C. 283 et seq.) is amended by adding at the end the 
following:

``SEC. 42. TENTH CAPITAL INCREASE.

    ``(a) Vote Authorized.--The United States Governor of the Bank is 
authorized to vote in favor of a resolution to increase the capital 
stock of the Bank by $80,000,000,000 over a period not to exceed 5 
years.
    ``(b) Subscription Authorized.--
            ``(1) In general.--The United States Governor of the Bank 
        may subscribe on behalf of the United States to 1,990,714 
        additional shares of the capital stock of the Bank.
            ``(2) Limitation.--Any subscription by the United States to 
        the capital stock of the Bank shall be effective only to such 
        extent and in such amounts as are provided in advance in 
        appropriations Acts.
    ``(c) Limitations on Authorization of Appropriations.--
            ``(1) In general.--In order to pay for the increase in the 
        United States subscription to the Bank under subsection (b), 
        there is authorized to be appropriated $24,014,857,191 for 
        payment by the Secretary of the Treasury.
            ``(2) Allocation of funds.--Of the amount authorized to be 
        appropriated under paragraph (1)--
                    ``(A) $600,371,430 shall be for paid in shares of 
                the Bank; and
                    ``(B) $23,414,485,761 shall be for callable shares 
                of the Bank.''.

SEC. 5. SUPPORT FOR ENVIRONMENTAL SUSTAINABILITY INITIATIVES OF INTER-
              AMERICAN DEVELOPMENT BANK.

    (a) Findings.--Congress makes the following findings:
            (1) The Inter-American Development Bank has served as an 
        executing agency for the Global Environment Facility, a grant-
        making and financing facility supported by 182 countries to 
        address global environmental issues and sustainable 
        development.
            (2) The Bank has never had its own environmental grant-
        making and financing facility despite the fact that the 
        Americas are home to the world's largest tropical rain forest 
        and include countries significantly affected by natural 
        disasters annually.
    (b) Sense of Congress.--It is the sense of Congress that the Bank 
should--
            (1) establish its own environmental grant-making and 
        financing facility in order to implement and expand 
        environmental policies, metrics, and standards, to strengthen 
        resilience and disaster preparedness, and to improve 
        sustainability and conservation; and
            (2) continue to strengthen environmental safeguards as an 
        element of economic development in the Western Hemisphere.
    (c) Diplomatic Engagement.--The President shall advance diplomatic 
engagement to build support among member countries of the Bank for the 
creation of an environmental fund and financing facility as part of the 
tenth general capital increase for the Bank.
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