22 U.S.C. § 262p-7 : US Code - Section 262P-7: Reform of the Enhanced Structural Adjustment Facility

Search 22 U.S.C. § 262p-7 : US Code - Section 262P-7: Reform of the Enhanced Structural Adjustment Facility

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.