§ 286s. — Consideration of basic human needs in economic adjustment programs supported by Fund.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC286s]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 7--INTERNATIONAL BUREAUS, CONGRESSES, ETC.
SUBCHAPTER XV--INTERNATIONAL MONETARY FUND AND BANK FOR RECONSTRUCTION
AND DEVELOPMENT
Sec. 286s. Consideration of basic human needs in economic
adjustment programs supported by Fund
(a) Formulation and design of programs
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.
(b) Changes in Fund guidelines, policies, and decisions; review prior to
approval of standby arrangements; coordination among
institutions; coordination between Fund and Bank; periodic
analyses
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);
(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;
(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;
(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.
(July 31, 1945, ch. 339, Sec. 33, as added Pub. L. 96-389, Sec. 2(a),
Oct. 7, 1980, 94 Stat. 1551; amended Pub. L. 101-240, title V,
Sec. 541(d)(1), Dec. 19, 1989, 103 Stat. 2518.)
Amendments
1989--Subsec. (c). Pub. L. 101-240 struck out subsec. (c) which
required inclusion of statement detailing progress made in carrying out
subsecs. (a) and (b) requirements in Council's annual report to
Congress.
Effective Date
Section 12 of Pub. L. 96-389 provided that: ``This Act [enacting
this section and sections 286e-1g and 286t to 286x of this title,
amending sections 286e-1g, 286e-8, and 286e-9 of this title and section
27 of former Title 31, Money and Finance, and enacting provisions set
out as notes under sections 286a and 286t of this title and section 822a
of former Title 31] shall take effect on its date of enactment [Oct. 7,
1980], except that funds may not be appropriated under any authorization
contained in this Act for any period prior to October 1, 1980.''
