(a) The Secretary of the Treasury
shall instruct the United States Executive Director of the Fund to
promote regularly and vigorously in program discussions and quota
increase negotiations the following proposals:
(1) (A)
(i) Considerations
of poverty alleviation and the reduction of barriers to economic and
social progress should be incorporated into all Fund programs and
all consultations under article IV of the Articles of Agreement of
the Fund.
(ii) Preparation
of Policy Framework Papers should be extended to all nations which
have Fund programs and active Bank or International Development Association
lending programs, and existence of a Policy Framework Paper should
be a precondition for new lending to such nations by the Fund.
(iii) All Policy Framework
Papers should articulate the principal poverty, economic, and social
measures that the borrowing nation needs to address, and this portion
of the Policy Framework Paper (or a summary thereof that includes
specific measures and timing) should be made available when the Policy
Framework Paper is submitted to the Executive Directors of the Bank
and of the Fund for consideration.
(iv) In considering whether to allocate resources
of the Fund to a borrower, the Fund should take into consideration
the nature of the program and commitment of the borrower to address
the issues referred to in clause (iii).
(v) The Fund should establish procedures to
enable the Fund to cooperate with the Bank in evaluating the effectiveness
of the measures referred to in clause (iii), at the levels of policy,
project design, monitoring, and reporting, in the international financial
institutions and in the borrowing nations.
(B) (i) The
Fund should be encouraged to make further progress toward environmentally
sound policies and programs.
(ii) The Fund should incorporate environmental considerations into
all Fund programs, including consultations under article IV of the
Articles of Agreement of the Fund.
(iii) The Fund should be encouraged to support
the efforts of nations to implement systems of natural resource accounting
in their national income accounts.
(iv) The Fund should be encouraged to assist
and cooperate fully with the statistical research being undertaken
by the Organization for Economic Cooperation and Development and by
the United Nations in order to facilitate development and adoption
of a generally applicable system for taking account of the depletion
or degradation of natural resources in national income accounts.
(v) The Fund should be encouraged
to consider and implement, as appropriate, revisions in its national
income reporting systems consistent with such new systems as are of
general applicability.
(2) (A)
The Fund should conduct periodic audits to review systematically the
policy prescriptions recommended and required by the Fund in the areas
of poverty and the environment.
(B) The purposes of such audits would
be—
(i) to determine whether the Fund’s objectives
were met; and
(ii) to evaluate
the social and environmental impacts of the implementation of the
policy prescriptions.
(C) Such audits would have access to
all ongoing programs and activities of the Fund and the ability to
review the effects of Fund-supported programs, on a country-by-country
basis, with respect to poverty, economic development, and environment.
(D) Such audits should
be made public as appropriate with due respect to confidentiality.
(3) The Fund
should establish procedures that ensure the focus of future economic
reform programs approved by the Fund on policy options that increase
the productive participation of the poor in the economy.
(4) (A)
The Fund should establish procedures for public access to information.
(B) Such procedures
shall seek to ensure access of the public to information while paying
due regard to appropriate confidentiality.
(C) Policy Framework Papers and the
supporting documents prepared by the Fund’s mission to a country are
examples of documents that should be made public at an appropriate
time and in appropriate ways.
1-501.39
(b) Each annual report of the National Advisory Council on International
Monetary and Financial Policies shall describe the following:
(1) The actions that the United States
Executive Director and other officials have taken to convince the
Fund to adopt the proposals set forth in subsection (a) through formal
initiatives before the Board and management of the Fund, through bilateral
discussions with other member nations, and through any further quota
increase negotiations.
(2) The status of the progress being made by the Fund in implementing
the proposals set forth in subsection (a).
(c) The Secretary of the Treasury shall instruct the United States
Executive Director to the Fund to urge the Fund—
(1) to explore ways to increase the involvement
and participation of important ministries, national development experts,
environmental experts, free-market experts, and other legitimate experts
and representatives from the loan-recipient country in the development
of Fund programs; and
(2) to report on the status of Fund efforts in this regard.
[22 USC 286ll. As added by act of Oct. 24, 1992 (106 Stat.
3357).]
