22 U.S.C. § 262p–7 — Reform of the Enhanced Structural Adjustment Facility

submitted 27 years ago by Pub. L. 95-118 to r/title-22-FOREIGN-RELATIONS-AND-INTERCOURSE · 547 words · no verdicts yet

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This law directs Treasury to push the World Bank and IMF to link country lending to poverty-reduction strategy papers written by the countries themselves. It requires clearer conditions, more transparency, an IMF evaluation unit, and public disclosure of program plans.

The Treasury Secretary must instruct the U.S. representatives at the World Bank and IMF to use America's voice and vote to promote poverty-reduction strategy policies and procedures at both institutions, supporting country programs jointly developed by the two institutions that include: (1) Country-specific poverty reduction strategies, led by each country, that: (A) are set out in poverty reduction strategy papers (PRSPs) forming the basis for International Development Association lending and the reformed Enhanced Structural Adjustment Facility (ESAF); (B) reflect the World Bank's role in poverty reduction and the IMF's role in macroeconomic issues; (C) make IMF and World Bank advice and operations fully consistent with reducing poverty through broad-based growth; and (D) include (i) transparent budget procedures making sure debt-relief benefits under the modified HIPC Initiative go to anti-poverty programs, and (ii) trackable indicators of poverty-reduction progress. (2) Regular, thorough reviews of the reformed ESAF and IDA programs, to check progress toward longer-term poverty goals in the strategies and allow adjustments. (3) Publishing PRSPs before the Executive Board reviews related IDA and reformed-ESAF programs. (4) Setting up a standing evaluation unit at the IMF — similar to the World Bank's Operations Evaluation Department — that reports directly to the IMF's Executive Board and regularly reviews IMF operations, including reformed ESAF, covering: (A) assessing reformed ESAF programs' results on poverty reduction, growth, and access to basic social services; (B) assessing how much and how well citizens participated in designing the programs; (C) confirming that reformed ESAF programs match the poverty reduction strategies; and (D) promptly releasing all the unit's reviews to the public. (5) Promoting clearer conditions in IDA and reformed-ESAF programs, focused on reforms most likely to support poverty reduction through broad-based growth. (6) Having the IMF adopt policies to reform ESAF so its programs match the poverty reduction strategies. (7) Having the World Bank adopt policies to make sure its lending in countries eligible for debt relief under the modified HIPC Initiative matches the poverty reduction strategies. (8) Strengthening the link between how well a borrowing country performs and its IDA and reformed-ESAF lending, based on clear, trackable indicators. (9) Fully and publicly disclosing the proposed goals and financial setup of ESAF's successor program at least 90 days before the IMF's Executive Board decides whether to adopt it.

the actual law source: uscode.house.gov ↗public domain

The Secretary of the Treasury shall instruct the United States Executive Directors at the International Bank for Reconstruction and Development (World Bank) and the International Monetary Fund (IMF) to use the voice and vote of the United States to promote the establishment of poverty reduction strategy policies and procedures at the World Bank and the IMF that support countries’ efforts under programs developed and jointly administered by the World Bank and the IMF that have the following components:

(1)

The development of country-specific poverty reduction strategies (Poverty Reduction Strategies) under the leadership of such countries that—

(A)

will be set out in poverty reduction strategy papers (PRSPs) that provide the basis for the lending operations of the International Development Association (IDA) and the reformed Enhanced Structural Adjustment Facility (ESAF);

(B)

will reflect the World Bank’s role in poverty reduction and the IMF’s role in macroeconomic issues;

(C)

will make the IMF’s and the World Bank’s advice and operations fully consistent with the objectives of poverty reduction through broad-based economic growth; and

(D)

should include—

(i)

implementation of transparent budgetary procedures and mechanisms to help ensure that the financial benefits of debt relief under the modified Heavily Indebted Poor Countries Initiative (as defined in section 262p–6 of this title) are applied to programs that combat poverty; and

(ii)

monitorable indicators of progress in poverty reduction.

(2)

The adoption of procedures for periodic comprehensive reviews of reformed ESAF and IDA programs to help ensure progress toward longer-term poverty goals outlined in the Poverty Reduction Strategies and to allow adjustments in such programs.

(3)

The publication of the PRSPs prior to Executive Board review of related programs under IDA and the reformed ESAF.

(4)

The establishment of a standing evaluation unit at the IMF, similar to the Operations Evaluation Department of the World Bank, that would report directly to the Executive Board of the IMF and that would undertake periodic reviews of IMF operations, including the operations of the reformed ESAF, including—

(A)

assessments of experience under the reformed ESAF programs in the areas of poverty reduction, economic growth, and access to basic social services;

(B)

assessments of the extent and quality of participation in program design by citizens;

(C)

verifications that reformed ESAF programs are designed in a manner consistent with the Poverty Reduction Strategies; and

(D)

prompt release to the public of all reviews by the standing evaluation unit.

(5)

The promotion of clearer conditionality in IDA and reformed ESAF programs that focuses on reforms most likely to support poverty reduction through broad-based economic growth.

(6)

The adoption by the IMF of policies aimed at reforming ESAF so that reformed ESAF programs are consistent with the Poverty Reduction Strategies.

(7)

The adoption by the World Bank of policies to help ensure that its lending operations in countries eligible for debt relief under the modified Heavily Indebted Poor Countries Initiative are consistent with the Poverty Reduction Strategies.

(8)

Strengthening the linkage between borrower country performance and lending operations by IDA and the reformed ESAF on the basis of clear and monitorable indictors.1

(9)

Full public disclosure of the proposed objectives and financial organization of the successor to the ESAF at least 90 days before any decision by the Executive Board of the IMF to consider its adoption.

Source credit: (Pub. L. 95–118, title XVI, § 1624, as added Pub. L. 106–113, div. B, § 1000(a)(5) [title V, § 502], Nov. 29, 1999, 113 Stat. 1536, 1501A–314.)

history & why it existsrecord from the source credit

1999Enacted · Pub. L. 95-118 · 113 Stat. 1536, 1501

A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-118 on 1999-11-29.

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