(a) The President shall instruct
the Secretary of the Treasury, the Secretary of State, and other appropriate
Federal officials to use all appropriate means to encourage countries,
in formulating economic adjustment programs to deal with their balance
of payments difficulties, to design those programs so as to safeguard,
to the maximum feasible extent, jobs, investment, real per capita
income, policies to reduce the gap in wealth between rich and poor,
and social programs such as health, housing, and education.
1-500.3
(b) To ensure the effectiveness of economic adjustment programs supported
by Fund resources and the reinforcement of those programs by longer
term efforts to promote sustained growth and improved living conditions—
(1) United States representatives
to the Fund shall recommend and shall work for changes in Fund guidelines,
policies, and decisions that would—
(A) permit stand-by arrangements
to be extended beyond three years, as necessary to enable Fund members
to implement their
economic adjustment programs successfully;
(B) provide that in approving any economic
adjustment program the Fund shall take into account the effect such
program will have on jobs, investment, real per capita income, the
gap in wealth between the rich and poor, and social programs such
as health, housing, and education, in order to seek to minimize the
adverse impact of those adjustment programs on basic human needs;
and
(C) provide that
letters of intent submitted to the Fund in support of an economic
adjustment program reflect that the member country has taken into
account the effect such program will have on the factors listed in
subparagraph (B);
1-500.4
(2) (A) before voting
on the approval of any standby arrangement with respect to any economic
adjustment program, the United States Executive Director shall review—
(i) any analysis of factors prepared by the Fund or the member country
in accordance with subparagraphs (B) and (C) of paragraph (1), or
(ii) if no such analysis
is prepared and available for such review, an analysis which shall
be prepared by the United States Governor of the Fund which examines
the effect of the program on the factors listed in subparagraph (B)
of paragraph (1); and
(B) the United States Executive Director
of the Fund shall take into account the analysis reviewed pursuant
to subparagraph (A) of this paragraph in voting on approval of that
standby arrangement;
1-500.5
(3) United States representatives to the
Fund, to the Bank, and to other appropriate institutions shall work
toward improving coordination among these institutions and, in particular,
shall work toward formulation of programs in association with economic
adjustment programs supported by Fund resources which (A) will, among
other things, promote employment, investment, real income per capita,
improvements in income distribution, and the objectives of social
programs such as health, housing, and education, and (B) will, to
the maximum extent feasible and consistent with the borrowing country’s
need to improve its balance of payments position within a reasonable
period, ameliorate any adverse effects of economic adjustment programs
on the poor;
1-500.6
(4) United States representatives
to the Fund and the Bank shall seek amendments to decisions on policies
on the use of Fund and Bank resources to provide that, where countries
are seeking Extended Fund Facility or upper credit tranche drawings
from the Fund and are eligible to receive financing from the Bank,
the Fund and Bank will coordinate their financing activities in order—
(A) to take into account the effects of economic adjustment programs
on the areas listed in clause (A) of paragraph (3),
(B) to provide, to the extent feasible,
Bank project loans designed to safeguard and further basic human needs
in countries adopting economic adjustment programs supported by Fund
resources, and
(C)
to provide, as appropriate, Bank financing for programs of structural
adjustment that will facilitate development of a productive economic
base and greater attainment of basic human needs objectives over the
longer term; and
(5) United States representatives to the
Fund and the Bank shall request the Fund and the Bank to provide periodic
analyses of the effects of economic adjustment programs supported
by Fund or Bank financing on jobs, investment, real income per capita,
income distribution, and social programs such as health, housing,
and education.
[22 USC 286s. As added
by act of Oct. 7, 1980 (94 Stat. 1551) and amended by act of Dec.
19, 1989 (103 Stat. 2518).]
