Treasury Maintains a Formal Process to Advance U.S. Policies at the International Monetary Fund
Gao ID: GAO-03-401R February 7, 2003Over the past 50 years, Congress has shown increasing interest in legislating U.S. policies concerning the International Monetary Fund (IMF or the Fund). In 2001, we reported that the United States had 60 legislative mandates prescribing U.S. policy goals at the Fund. These mandates covered a wide range of policies, including human rights, international trade, and weapons proliferation. Because the Fund is an international organization, it is generally exempt from U.S. law. However, Congress can seek to influence IMF policy by directing the Secretary of the Treasury to instruct the U.S. Executive Director of the Board of the Fund to pursue specific policies or vote in a particular way as part of his duties. In 2000, Congress directed us to assess the Department of the Treasury's efforts in advancing U.S. legislative mandates at the Fund. The Consolidated Appropriations Act for Fiscal Year 2000 requires us to report annually on the extent to which IMF practices are consistent with U.S. policies as set forth in federal law. In January 2001, we reported that the Treasury instituted a formal process in 1999 to systematically promote congressionally mandated policies at the Fund. We also found that while Treasury had some influence over Fund policies, it was difficult to attribute the adoption of a policy within the Fund solely to the efforts of any one member because the Fund generally makes decisions on the basis of consensus. In this report, we provide an update on (1) the status of the U.S. Treasury's process for advancing congressional mandates at the Fund and (2) the number of U.S. legislative mandates concerning the Fund.
The U.S. Treasury continues to maintain a formal process for advancing U.S. policies at the Fund. A task force facilitates coordination between the Treasury and the U.S. Executive Director and identifies early opportunities to influence decisions of Fund members. Since our January 2001 report, the task force has continued to meet on a biweekly basis to identify opportunities to advance legislative mandates at the Fund. In addition, beginning in March 2001, the task force enhanced its efforts to monitor and promote mandates by focusing attention on countries that are not yet on the IMF Board's calendar but that may likely require Fund assistance in the future. We have identified 67 legislative mandates that prescribe U.S. policy goals at the IMF, an increase of 7 mandates since our January 2001 report. These additional mandates address policy issues such as international terrorism, rule of law and land reform concerning Zimbabwe, and humanitarian efforts concerning Sudan. Terrorism is a topic that is covered in prior mandates as well. The Treasury continues to notify the U.S. Executive Director about new mandates through instruction letters.
GAO-03-401R, Treasury Maintains a Formal Process to Advance U.S. Policies at the International Monetary Fund
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United States General Accounting Office:
GAO:
GAO-03-401R:
United States General Accounting Office:
Washington, DC 20548:
February 7, 2003:
Congressional Committees:
Subject: Treasury Maintains a Formal Process to Advance U.S. Policies
at the International Monetary Fund:
Over the past 50 years, Congress has shown increasing interest in
legislating U.S. policies concerning the International Monetary Fund
(IMF or the Fund). In 2001, we reported that the United States had 60
legislative mandates prescribing U.S. policy goals at the Fund.
[Footnote 1] These mandates covered a wide range of policies, including
human rights, international trade, and weapons proliferation. Because
the Fund is an international organization, it is generally exempt from
U.S. law. However, Congress can seek to influence IMF policy by
directing the Secretary of the Treasury to instruct the U.S. Executive
Director of the Board of the Fund to pursue specific policies or vote
in a particular way as part of his duties. [Footnote 2]
In 2000, Congress directed us to assess the Department of the
Treasury‘s efforts in advancing U.S. legislative mandates at the Fund.
The Consolidated Appropriations Act for Fiscal Year 2000 [Footnote 3]
requires us to report annually on the extent to which IMF practices are
consistent with U.S. policies as set forth in federal law. In January
2001, we reported that the Treasury instituted a formal process in 1999
to systematically promote congressionally mandated policies at the
Fund. We also found that while Treasury had some influence over Fund
policies, it was difficult to attribute the adoption of a policy within
the Fund solely to the efforts of any one member because the Fund
generally makes decisions on the basis of consensus. In this report, we
provide an update on (1) the status of the U.S. Treasury‘s process for
advancing congressional mandates at the Fund and (2) the number of U.S.
legislative mandates concerning the Fund.
Results in Brief:
The U.S. Treasury continues to maintain a formal process for advancing
U.S. policies at the Fund. A task force facilitates coordination
between the Treasury and the U.S. Executive Director and identifies
early opportunities to influence decisions of Fund members. Since our
January 2001 report, the task force has continued to meet on a biweekly
basis to identify opportunities to advance legislative mandates at the
Fund. In addition, beginning in March 2001, the task force enhanced its
efforts to monitor and promote mandates by focusing attention on
countries that are not yet on the IMF Board‘s calendar but that may
likely require Fund assistance in the future.
We have identified 67 legislative mandates that prescribe U.S. policy
goals at the IMF, an increase of 7 mandates since our January 2001
report. These additional mandates address policy issues such as
international terrorism, rule of law and land reform concerning
Zimbabwe, and humanitarian efforts concerning Sudan. Terrorism is a
topic that is covered in prior mandates as well. The Treasury continues
to notify the U.S. Executive Director about new mandates through
instruction letters.
Background:
The Department of the Treasury has the lead role within the executive
branch for formulating U.S. policy toward the Fund. The U.S. Executive
Director, who is appointed by the President, represents the United
States at the Fund and pursues U.S. policy objectives through its
membership in the Fund‘s Executive Board. Treasury‘s Office of
International Affairs, along with the Office of the U.S. Executive
Director of the IMF, formulate, evaluate, and implement Treasury policy
concerning U.S. participation in the IMF, including the policies set
forth in legislative mandates.
The legislative mandates that set forth U.S. policy toward the Fund
cover a wide range of policies, including issues considered core to the
Fund‘s mission, such as exchange rate policy, as well as emerging
issues such as environmental policy. Mandates in this report are put
into two broad categories: ’policy“ and ’directed vote“ mandates.
Policy mandates seek to foster or urge a certain policy at the IMF by
directing Treasury to instruct the U.S. Executive Director to use his
’voice“ and/or ’vote“ on behalf of the United States at the Executive
Board to bring about a policy change at the Fund. For example, the U.S.
Executive Director is directed to urge the IMF to encourage the
adoption of internationally recognized worker rights by borrowing
countries. Directed vote mandates instruct the United States to ’oppose“
or ’vote against“ loans or other IMF assistance. For example, the U.S.
Executive Director is directed to oppose financial assistance for a
country that is not compliant with the military spending and audits
mandate, as shown in enclosure I.
Treasury Has a Systematic Process for Promoting IMF Mandates Treasury
continues to have a systematic process in place to advance U.S.
legislative mandates at the Fund. As we reported in our January 2001
report, [Footnote 4] Treasury created the Task Force on Implementation
of U.S. Policy and Reforms in the IMF in March 1999 to strengthen the
process by which the United States pursues its objectives in the IMF.
In particular, the task force was to increase awareness among Treasury
staff about the mandates and identify early opportunities to provide
input to the U.S. Executive Director to influence decisions regarding
IMF members‘ programs and economic reviews. Treasury also continues to
make available to all relevant staff annual updates of its
comprehensive legislative mandates manual, which contains all mandates
applicable to U.S. participation in the Fund.
The task force comprises staff-level representatives from the regional
and functional offices within Treasury‘s Office of International
Affairs, Treasury‘s Office of the General Counsel, and the U.S.
Executive Director‘s office. Task force members continue to meet
biweekly to discuss how Treasury and the U.S. Executive Director can
best apply legislative mandates given a country‘s economic
circumstances. [Footnote 5] At the task force meetings, members discuss
opportunities to advance mandates of potential relevance for specific
countries. The aim of the discussion is to identify the best
opportunities to make a credible and convincing case for pursuing a
mandate at a given time. Once agreement is reached on how to advance a
mandate, Treasury country officers collaborate with U.S. Executive
Director staff and functional specialists to draft a policy position
for the U.S. Executive Director. The policy position can take the form
of input for a written statement or talking points for an oral
statement to the Executive Board. The U.S. Executive Director pursues
U.S. objectives, including the legislative mandates, through various
channels at the Fund. For example, the U.S. Executive Director
regularly makes oral or written statements to the Board to make Board
members aware of U.S. policy objectives regarding requests from
countries for new programs, Fund reviews of existing programs, and
regular Fund reviews of all members‘ economic policies.
Since our January 2001 report, Treasury has worked to enhance its
efforts to monitor and promote the mandates at the Fund. Prior task
force meetings tended to focus on countries that were scheduled for
discussion by the IMF Board in upcoming weeks. In March 2001, the task
force implemented an agenda that also assesses countries that may need
a program over the next several months. The task force prepares a
summary of the issues regarding the mandates for targeted countries,
which it updates and circulates every 2 weeks to complement the IMF
Executive Board calendar and to focus attention on countries not yet on
the Board‘s calendar.
U.S. Legislative Mandates Concerning the IMF Have Increased:
U.S. legislative mandates concerning the IMF have increased since our
January 2001 report. We identified 67 legislative mandates as of
January 15, 2003, through our own legal analysis supplemented by
documentation obtained from Treasury, 7 more mandates than identified
in our January 2001 report. These additional mandates address policy
issues such as international terrorism, rule of law and land reform
concerning Zimbabwe, and humanitarian efforts concerning Sudan.
Terrorism is a topic that is covered in prior mandates as well.
Treasury continues to provide annual notification letters concerning
new mandates to the U.S. Executive Director‘s office. These
notification letters instruct the U.S. Executive Director to take
appropriate actions with respect to IMF mandates.
Enclosure I identifies the 67 mandates and includes brief descriptions
of the broad policy objectives they address as well as some of the
actions they require on the part of the U.S. Treasury and the U.S.
Executive Director. The mandates date from 1945 to 2002, with the
majority enacted in the last decade. Some mandates address multiple
policy issues, sometimes overlapping one another. Enclosure II
identifies some policies that are addressed in multiple mandates.
[Footnote 6] For example, 9 mandates pertain to trade issues and 7
mandates pertain to debt issues.
Agency Comments and Our Evaluation:
We received written comments on a draft of this report from the
Department of the Treasury, which are reprinted in enclosure III.
Treasury agreed with the facts presented in this report. Treasury
reiterates its position that the extensive legislative mandates could
potentially undermine its effectiveness and influence at the Fund. In
addition to their written comments, Treasury officials provided
technical comments, which we incorporated in this report where
appropriate.
Scope and Methodology:
To assess the current process that Treasury has in place to advance
congressional mandates at the IMF, we reviewed the minutes of the
biweekly task force meetings from November 2000 to December 2002, which
summarized major issues relating to the mandates. To determine the
current number of mandates pertaining to the IMF, we analyzed
Treasury‘s compilation of legislative mandates pertaining to the
international financial institutions as well as documents obtained
through our own legal research. In addition, we reviewed the
instruction letters from Treasury to the U.S. Executive Director
concerning new mandates for February 2001 and March 2002. We used two
criteria as the basis for identifying the relevant laws for this review.
These criteria were defined as (1) any current law that explicitly
directs the U.S. Executive Director to the IMF to use his vote at the
IMF to achieve a policy goal and (2) any current law that seeks to have
the U.S. Executive Director use his voice at the IMF to promote a U.S.
policy or make a policy change. To address both objectives, we also
interviewed officials in Treasury‘s Office of International Monetary
Policy and the Office of the General Counsel.
We conducted this review from November 2002 to January 2003 in
accordance with generally accepted government auditing standards.
We are sending copies of this report to other interested congressional
committees; the Secretary of the Treasury, the Managing Director of the
International Monetary Fund, and other interested parties. Copies will
be made available to others on request. In addition, this report will
be available at no charge on our Web site at [hyperlink,
http://www.gao.gov.
If you have any questions about this report, please contact Joseph A.
Christoff at 202-512-8979 and Stephanie J. May at 202-512-6293. We can
also be reached by E-mail at christoffj@gao.gov and mays@gao.gov,
respectively. Thomas Melito, Barbara Shields, Mary Moutsos, Mark
Speight, Lynn Cothern, and Janey Cohen made contributions to this
report.
Signed by:
Joseph A. Christoff:
Director, International Affairs and Trade:
Signed by:
Stephanie J. May:
Managing Associate General Counsel:
General Counsel:
Enclosures – 3:
List of Congressional Committees:
The Honorable Richard Lugar:
Chairman:
The Honorable Joseph R. Biden, Jr.:
Ranking Minority Member:
Committee on Foreign Relations:
United States Senate:
The Honorable Ted Stevens:
Chairman:
The Honorable Robert C. Byrd:
Ranking Minority Member:
Committee on Appropriations:
United States Senate:
The Honorable Mitch McConnell:
Chairman:
The Honorable Patrick J. Leahy:
Ranking Minority Member:
Subcommittee on Foreign Operations, Export Financing, and Related
Programs:
Committee on Appropriations:
United States Senate:
The Honorable Michael G. Oxley:
Chairman:
The Honorable Barney Frank:
Ranking Minority Member:
Committee on Financial Services:
House of Representatives:
The Honorable Bill Young:
Chairman:
The Honorable David R. Obey:
Ranking Minority Member:
Committee on Appropriations:
House of Representatives:
[End of correspondence]
Enclosure 1:
U.S. Legislative Mandates[A] Concerning the International Monetary
Fund:
Law and date of enactment[B]: 22 U.S.C. 262d, Oct. 3, 1977;
Subject matter: Human rights, international terrorism, religious
freedom, and others, including nuclear material acquisition;
Required actions: The Department of the Treasury shall instruct the U.S.
Executive Director (USED) to oppose loans to countries whose
governments engage in a pattern of gross violations of internationally
recognized human rights or provide refuge to individuals committing
acts of international terrorism by hijacking aircraft, unless such
assistance is directed to serve basic human needs. Severe violations of
religious freedom should be considered in determining if the country
has engaged in gross violations of internationally recognized human
rights. Further, Treasury is to instruct the USED to consider a list of
concerns when carrying out its duties, including whether recipient
countries are seeking to acquire unsafeguarded special nuclear material.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 262e, Oct. 3, 1977;
Subject matter: Salaries and benefits of IMF employees;
Required actions: The President shall direct the USED to take all
appropriate actions to keep the compensation for International Monetary
Fund (IMF) employees at a level comparable to the compensation provided
employees of both private business and the U.S. government in
comparable positions.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262h, Oct. 15, 1986 (also
repeated in P.L. 107-115, sec. 514, Jan. 10, 2002);
Subject matter: Trade, mining, and surplus commodities;
Required actions: Treasury shall instruct the USED to use his voice and
vote on behalf of the United States to oppose any IMF assistance for
the production or extraction of any commodity or mineral for export, if
it is in surplus on world markets and if the assistance would cause
substantial injury to the U.S. producers of the same, similar, or
competing commodity.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 262k, Aug. 15, 1985;
Subject matter: Impact of country adjustment programs on industries and
commodity markets;
Required actions: Treasury shall instruct the USED to consider, when
reviewing loans, credits, or other uses of IMF resources, the effect
that country adjustment programs would have on individual industries‘
sectors and international commodity markets including specific criteria
to be considered as a basis for a vote against certain mining and
related project proposals.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262k-1, Sept. 30, 1996;
Subject matter: Military spending and audits;
Required actions: Treasury shall instruct the USED to use his voice and
vote to oppose any loan, other than for basic humanitarian needs, to
any country that the Secretary of the Treasury determines does not have
in place a functioning system for reporting to civilian authorities
audits of receipts and expenditures that fund activities of the armed
and security forces and that has not provided to the IMF information
about the audit process requested by the institution.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 262k-2, Sept. 30, 1996;
Subject matter: Female genital mutilation;
Required actions: Treasury shall instruct the USED to use his voice and
vote to oppose any loan, other than for basic humanitarian needs, for
any government that the Secretary of the Treasury determines has a
known history of practicing female genital mutilation and has not taken
steps to implement educational programs designed to prevent this
practice.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 262n-3, Oct. 21, 1998;
Subject matter: Trade barriers and agricultural commodities;
Required actions: Treasury shall instruct the USED to use aggressively
his voice and vote to vigorously promote policies to encourage the
opening of markets for agricultural commodities and products by
requiring recipient countries to make efforts to reduce trade barriers.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262o-1, Aug. 23, 1994;
Subject matter: Military spending and good governance;
Required actions: Treasury shall instruct the USED to consider, when
deciding whether to support a country‘s loan program, the extent to
which IMF borrowing countries have demonstrated a commitment to (1)
providing accurate and complete data on military spending; (2)
establishing good and publicly accountable governance, including to end
excessive military involvement in the economy; and (3) to make
substantial reductions in excessive military spending and forces. The
USED shall promote a policy that seeks to channel funding toward growth
and development priorities and away from unproductive expenditures,
including military spending.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262o-2, Oct. 21, 1998;
Subject matter: Transparency, debt, private sector, trade, crisis
lending, exchange rates, labor, the environment, military spending,
sound banking, social safety nets, good governance, corruption, the
poor, and ethnic and social strife;
Required actions: Treasury shall instruct the USED to use aggressively
his voice and vote to enhance the general effectiveness of the IMF with
respect to numerous issues, including exchange rate stability, trade
liberalization, antitrust reform, core labor standards, social safety
nets, sound banking principles, private sector burden-sharing,
disclosure of market information, debt, crises lending, good governance,
procurement reform, corruption and bribery, drug-related money
laundering, excessive military spending, ethnic and social strife,
environmental protection, transparency, and microenterprise lending,
especially to the world‘s poorest, heavily indebted countries.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262p-4n, Nov. 5, 1990;
Subject matter: Equal employment opportunities at the IMF;
Required actions: Treasury shall instruct the USED to use his voice and
vote to urge the IMF to adopt policies and procedures that ensure that
the IMF does not discriminate against any person on the basis of race,
ethnicity, gender, color, or religious affiliation in any determination
related to employment.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262p-4o, Aug. 23, 1994;
Subject matter: Respect for indigenous peoples;
Required actions: Treasury shall direct the USED to use his voice and
vote to bring about the creation and full implementation of policies
designed to promote respect for and full protection of the territorial
rights, traditional economies, cultural integrity, traditional
knowledge, and human rights of indigenous peoples.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262p-4p, Aug. 23, 1994;
Subject matter: Internationally recognized worker rights;
Required actions: Treasury shall direct the USED to use his voice and
vote to urge the IMF to adopt policies to encourage borrowing countries
to guarantee certain internationally recognized worker rights and to
include the status of such rights as an integral part of the policy
dialogue with each country. In addition, the USED shall urge the IMF to
establish formal procedures to screen projects and programs for any
negative impact in a borrowing country with respect to those rights.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262p-4q, Apr. 24, 1996;
Subject matter: State support of international terrorism;
Required actions: Treasury shall instruct the USED to use his voice and
vote to oppose any loan for a country for which the Secretary of State
has made a determination that it is a terrorist state.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 262p-6, Nov. 29, 1999;
Subject matter: Debt relief;
Required actions: Treasury should urge the IMF to complete a debt
sustainability analysis by December 31, 2000, and determine eligibility
for debt relief for as many countries under the modified Heavily
Indebted Poor Countries Initiative as possible. Treasury should also
instruct the USED to ensure that an external assessment of the Heavily
Indebted Poor Countries Initiative takes place by December 31, 2001.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262p-7, Nov. 29, 1999;
Subject matter: Extended Structural Adjustment Facility reform;
Required actions: Treasury shall instruct the USED to use his voice and
vote to promote the IMF‘s establishment of poverty reduction policies
and procedures to support countries‘ efforts under programs developed
and jointly administered by the World Bank and the IMF containing those
components listed in the mandate.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262r-5, Oct. 21, 1998;
Subject matter: GAO audits of the IMF;
Required actions: Treasury shall instruct the USED to facilitate timely
access by the GAO to IMF documents and information needed by GAO to
perform financial reviews of the IMF that will facilitate the conduct
of U.S. policy with respect to the IMF.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 262t, Dec. 19, 1989;
Subject matter: Personnel practices at the IMF;
Required actions: It shall be U.S. policy that no initiatives,
discussions, or recommendations concerning the placement or removal of
any personnel employed by the IMF shall be based on the political
philosophy or activity of that individual.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286e-8, Oct. 10, 1978;
Subject matter: Treatment of creditors in debt rescheduling;
Required actions: Treasury shall instruct the USED to seek to assure
that no decision by the IMF departs from U.S. policy regarding the
comparability of treatment of public and private creditors in cases of
debt rescheduling where official U.S. credits are involved.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286e-9, Oct. 10, 1978;
Subject matter: Investment, employment, and basic human needs;
Required actions: Treasury shall instruct the USED to encourage IMF
staff to formulate economic stabilization programs that foster a
broader base of productive investment and employment, especially in
those productive activities that are designed to meet basic human
needs.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286e-11, Oct. 10, 1978;
Subject matter: Countries harboring international terrorists;
Required actions: Treasury shall instruct the USED to work in
opposition to financing for countries either harboring international
terrorists or failing to take measures to prevent acts of international
terrorism.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286k, July 31, 1945;
Subject matter: International trade and economic stability;
Required actions: In considering the policies of the United States in
foreign lending, the USED shall give careful consideration to progress
made in reaching agreement among nations to reduce restrictions on
international trade and promote international economic stability.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286s, Oct. 7, 1980;
Subject matter: Basic human needs and economic adjustment programs;
Required actions: The USED shall recommend and work for changes in IMF
guidelines to ensure the effectiveness of economic adjustment programs
by considering the effect the program will have on issues such as jobs
and investment. The USED shall also work toward improved coordination
among the IMF, the World Bank, and other appropriate institutions in
this area.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286u, July 31, 1945;
Subject matter: Dollar-Special Drawing Rights substitution account;
Required actions: Treasury shall encourage IMF member countries to
negotiate a dollar-Special Drawing Rights substitution account in which
equitable burden-sharing would exist among participants in the account.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286v, Oct. 7, 1980;
Subject matter: Membership for Taiwan in the IMF;
Required actions: The USED shall notify the IMF that it is U.S. policy
that Taiwan be granted appropriate membership in the IMF.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286w, Oct. 7, 1980;
Subject matter: Denial of membership for the Palestinian Liberation
Organization;
Required actions: The USED shall notify the IMF that it is U.S. policy
that the Palestinian Liberation Organization not be given membership or
other status at the IMF.
Directed vote: No,
Law and date of enactment[B]: 22 U.S.C. 286x, Oct. 7, 1980;
Subject matter: Assistance to private sector of El Salvador, Nicaragua,
and other nations;
Required actions: The USED shall promote the use of IMF programs to
assist the private sector in any nation, though particularly El
Salvador and Nicaragua, in creating an environment that will stabilize
a nation‘s economy.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286y, Nov. 30, 1998;
Subject matter: Exchange rate stability;
Required actions: The USED shall work for adoption of policies in the
IMF to promote exchange rate stability. Also, in determining a vote of
assistance to any IMF borrower, the USED shall take into account
whether the borrower‘s policies are consistent with certain IMF
requirements.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286z, Nov. 30, 1983;
Subject matter: Transparency;
Required actions: Treasury shall instruct the USED to initiate
discussions at the IMF and propose and vote for adoption of procedures
to increase both the sharing of information among IMF members and the
public dissemination of certain IMF information concerning
international borrowing and lending.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286aa, Nov. 30, 1983;
Subject matter: Denial of lending to communist dictatorships;
Required actions: Treasury shall instruct the USED to actively oppose
any facility involving use of IMF credit by any communist dictatorship
unless certain conditions are met.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 286bb, Nov. 30, 1983;
Subject matter: Elimination of predatory agricultural export subsidies;
Required actions: Treasury shall instruct the USED to propose and work
for the adoption of an IMF policy encouraging members to eliminate all
predatory agricultural export subsidies that might result in the
reduction of other member countries‘ exports.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286cc, Nov. 30, 1983;
Subject matter: Trade, bank solvency, and external debt servicing;
Required actions: The USED shall recommend and shall work for changes in
IMF guidelines and policies that encourage countries to formulate
economic adjustment programs that deal with their balance-of-payment
difficulties and external debt owed to private banks. The USED shall
also oppose and vote against fund assistance for a country whose annual
external debt services exceed 85 percent of its annual export earnings,
unless Treasury can document why an exception should be given.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 286dd, Nov. 30, 1983;
Subject matter: Bank bailouts and debt rescheduling;
Required actions: Treasury shall instruct the USED to oppose and vote
against any IMF drawing by a member country that would be used to repay
loans imprudently made by banking institutions to a member country, and
to ensure that the IMF encourages borrowing countries and banking
institutions to renegotiate a rescheduling of debt that is consistent
with safe and sound banking practices and the country‘s ability to pay.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 286ee, Nov. 30, 1983;
Subject matter: International lending and external indebtedness;
Required actions: Treasury shall instruct the USED to propose that the
IMF adopt policies with respect to international lending, including a
policy to examine the trend and volume of external indebtedness of
private and public borrowers in Article IV consultations.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286ff, Nov. 30, 1983;
Subject matter: IMF interest rates;
Required actions: Treasury shall instruct the USED to propose and work
for the adoption of IMF policies regarding the rate of remuneration
paid on use of members‘ quota subscriptions and the rate of charges on
IMF drawings to bring those in line with market rates.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286gg, Nov. 30, 1983;
Subject matter: Elimination of trade and investment restrictions;
Required actions: Treasury shall instruct the USED to consult with the
IMF to reduce obstacles to and restrictions upon international trade
and investment in goods and services, eliminate unfair trade and
investment practices, and promote mutually advantageous economic
relations. The USED shall also work to have the IMF obtain agreement
with countries to eliminate certain unfair trade and investment
practices and shall take a country‘s progress into account in
formulating its position on requests for loans for periodic financial
disbursements.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286kk, Dec. 19, 1989;
Subject matter: Impact of IMF programs on the poor and the environment;
Required actions: Treasury shall instruct the USED to seek policy
changes at the IMF that will result in a review of policy prescriptions
implemented by the IMF to determine both if IMF objectives were met and
the social and environmental impacts of such prescriptions, and the
establishment of procedures to ensure that policy options that reduce
the potential adverse impact on the poor or the environment are
included in future economic reform programs.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286ll, Oct. 24, 1992;
Subject matter: IMF policy concerning transparency, the poor, and the
environment;
Required actions: Treasury shall instruct the USED to promote regularly
and vigorously in program and quota increase discussions a variety of
policy proposals including a proposal designed to alleviate poverty,
promote policy audits in the areas of poverty and the environment, and
allow public access to certain IMF information.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286mm, Oct. 24, 1992;
Subject matter: Measures to reduce military spending;
Required actions: The USED shall use his voice and vote to urge the IMF
to continue to develop an economic methodology to measure the level of
military spending by every developing country. The USED shall also urge
the IMF to provide annual reports that estimate the level of military
spending by each developing country and urge the IMF to include in every
Article IV consultation with such countries an analysis on this issue.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 286nn, Nov. 29, 1999;
Subject matter: Debt reduction;
Required actions: Treasury is authorized to instruct the USED to vote to
approve the sale of gold such that proceeds can be used toward debt
reduction for the Heavily Indebted Poor Countries Initiative.
Directed vote: No.
Law and date of enactment[B]: 50 U.S.C. 1701, note (P.L. 103-160, sec.
1511, Nov. 30, 1993 & P.L. 104-208, sec. 540, Feb. 12, 1996);
Subject matter: Serbia or Montenegro;
Required actions: Treasury shall instruct the USED to use the voice and
vote of the United States to oppose any IMF assistance to the
governments of Serbia and Montenegro, except for basic human needs or
unless a proper waiver or certification is made.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 2225, Dec. 30, 1974;
Subject matter: Integration of women;
Required actions: Treasury is requested to instruct the USED to
encourage and promote the integration of women into the national
economies of IMF member countries and into professional positions
within the IMF organization. In addition, Treasury is to take any
progress or lack of progress into account when making contributions to
the IMF.
Directed vote: No.
Law and date of enactment[B]: 22 U.S.C. 2370a, Apr. 30, 1994;
Subject matter: Expropriation of U.S. property;
Required actions: Treasury shall instruct the USED to vote against any
use of IMF funds for the benefit of any country that has, after 1956,
nationalized or expropriated U.S. property without compensation or
adequate arbitration, unless the funds are directed to programs that
serve the basic human needs of the citizens of that country, or the
President waives this prohibition on the basis of U.S. national
interests.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 2799aa-1, Apr. 30, 1994;
Subject matter: Nuclear transfers and illegal exports;
Required actions: The U.S. government shall oppose the extension of any
IMF loan or financial or technical assistance to any country that the
President determines either delivers nuclear reprocessing equipment,
material, or technology to any country or receives such equipment,
materials, or technology from another country, or is a nonnuclear state
that exports from the United States illegally any material, equipment,
or technology that would contribute significantly to its ability to
manufacture a nuclear explosive device and will be used for such a
device.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 5605, Dec. 4, 1991;
Subject matter: Sanctions against use of chemical and biological
weapons;
Required actions: The United States shall oppose, in accordance with 22
U.S.C. 262d, the extension of any loan or financial or technical
assistance to any country that the President determines uses chemical
or biological weapons either in violation of international law or
against its own nationals. The President may waive application of this
section under certain conditions.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 6034, Mar. 12, 1996;
Subject matter: Opposition to Cuban membership;
Required actions: Treasury shall instruct the USED to use the voice and
vote of the United States to oppose admission of Cuba as a member of
the IMF until the President submits a determination that a
democratically elected government is in power in Cuba.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 6302, Apr. 30, 1994;
Subject matter: Nuclear nonproliferation;
Required actions: Treasury shall instruct the USED to use the voice and
vote of the United States to oppose any use of IMF funds to promote the
acquisition of unsafeguarded special nuclear material or the
development, stockpiling, or use of any nuclear explosive device by any
non-nuclear-weapon state. The President may waive application of this
section with respect to India and Pakistan under certain conditions.
(See P.L. 106-79, Sec. 9001.)
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 6445, Oct. 27, 1998;
Subject matter: Religious freedom;
Required actions: The President shall instruct the USED to oppose and
vote against loans primarily benefiting a foreign government, agency,
instrumentality, or official determined by the President to be a
violator of religious freedoms.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 6713, Oct. 21, 1998;
Subject matter: U.S. liability, confidential business information, and
chemical weapons;
Required actions: The United States shall oppose any IMF loan or
financial or technical assistance to either a foreign government or any
foreign person, officer, or employee of the Organization for the
Prohibition of Chemical Weapons whose actions taken in the
implementation of the Chemical Weapons Convention make the United
States liable, or who knowingly divulge U.S. confidential business
information, or in the case of a government, encourage or assist a
person in making such disclosures.
Directed vote: Yes.
Law and date of enactment[B]: P.L. 104-208, sec. 570, Sept. 30, 1996;
Subject matter: Burma and human rights and democratic government;
Required actions: Treasury shall instruct the USED to vote against any
utilization of IMF funds for Burma until such time as the President
certifies to Congress that Burma has made measurable and sustainable
progress in improving human rights practices and implementing a
democratic government in Burma, or the President waives the sanction by
certifying to Congress that the sanction is contrary to U.S. national
interests.
Directed vote: Yes.
Law and date of enactment[B]: P.L.106-113, sec. 504, Nov. 29, 1999;
Subject matter: IMF Operational Budget;
Required actions: Treasury shall instruct the USED to use the voice and
vote and influence of the U.S. to urge vigorously the IMF both to
publish the operational budgets of the IMF on a quarterly basis, not
later than one year after the end of the period covered by the budget,
and to continue to forgo reimbursements of the expenses incurred by the
IMF in administering the Enhanced Structural Adjustment Facility,
until the Heavily Indebted Poor Countries initiative is terminated.
Directed vote: Yes.
Law and date of enactment[B]: P.L. 106-386, sec. 110, Oct. 28, 2000;
Subject matter: Combat trafficking in persons;
Required actions: The President will instruct the USED to vote against,
and to use his best efforts to deny, any loan or other use of IMF funds
for the subsequent fiscal year to a country that fails to comply or is
not making significant efforts to bring itself into compliance with the
minimum standards for the elimination of trafficking in persons. If
certain requirements are met, this mandate does not apply to
humanitarian assistance, trade-related assistance, or development
assistance and can be waived by the President if the continuation of
assistance is in the national interest.
Directed vote: Yes.
Law and date of enactment[B]: P.L.106-429, sec. 545, Nov. 6, 2000;
Subject matter: Purchase of American-made equipment and products;
Required actions: Treasury shall report to Congress annually on the
efforts of the USED in complying with the sense of Congress that, to
the greatest extent practicable, all agriculture commodities, equipment
and products purchased with funds made available in the Foreign
Operations, Export Financing, and Related Programs Appropriations Act,
2001, should be American made.
Directed vote: No.
Law and date of enactment[B]: P.L. 107-115, sec. 530, Jan. 10, 2002;
Subject matter: Compensation for the USED [indicated in bold type];
Required actions: No funds appropriated by the Foreign Operations,
Export Financing, and Related Programs Act, 2002, may be made as
payment to the IMF while the USED is compensated by the IMF at a rate
that, together with the compensation the USED receives from the United
States, is in excess of the rate provided for an individual occupying a
position at level IV of the Executive Schedule under 5 U.S.C. 5315.
Directed vote: No.
Law and date of enactment[B]: P.L. 106-429, sec. 537, Nov. 6, 2000;
Subject matter: Clean coal technology;
Required actions: Treasury, through the USED, should, as appropriate,
vigorously promote the use of U.S. clean coal technology in
environmental and energy infrastructure programs, projects, and
activities, such as in reconstruction assistance for the Balkans.
Directed vote: No.
Law and date of enactment[B]: P.L. 107-115, sec. 581, Jan. 10, 2002;
Subject matter: Countries providing sanctuary to indicted war criminals
[indicated in bold type];
Required actions: Treasury shall instruct the USED to vote against any
extension of IMF grants or financial or technical assistance to any
country whose authorities have failed, as determined by the Secretary
of State, to take necessary and significant steps to apprehend and
transfer persons indicted by the International Criminal Tribunal for
the former Yugoslavia. This section does not apply to humanitarian
assistance and assistance for democratization.
Directed vote: Yes.
Law and date of enactment[B]: P.L. 107-115, sec. 563, Jan. 10, 2002;
Subject matter: Cambodia [indicated in bold type];
Required actions: Treasury should instruct the USED to use the voice and
vote of the United States to oppose loans to the central government of
Cambodia, except loans to support basic human needs.
Directed vote: Yes.
Law and date of enactment[B]: P.L. 107-115, sec. 584, Jan. 10, 2002;
Subject matter: Serbia [indicated in bold type];
Required actions: After March 31, 2002, Treasury should instruct the
USED to support loans and assistance to the Yugoslavian government
subject to certain conditions, including that the Yugoslavian
government is taking steps consistent with the Dayton Peace Accord to
end financial, political, security, and other support that served to
maintain separate Republika Srpska institutions. With respect to such
loans, 22 U.S.C. 262k-1, which requires transparency of military
budgets, shall not apply.
Directed vote: Yes.
Law and date of enactment[B]: P.L. 107-115, sec. 582, Jan. 10, 2002;
Subject matter: User fees [indicated in bold type];
Required actions: Treasury shall instruct the USED to oppose any loan
that would require user fees or service charges on poor people for
primary education or primary healthcare, including prevention and
treatment efforts for Human Immunodeficiency Virus/Acquired Immune
Deficiency Syndrome, malaria, tuberculosis, and infant, child and
maternal well-being, in connection with the IMF‘s lending program.
Directed vote: Yes.
Law and date of enactment[B]: 22 U.S.C. 286oo, Nov. 6, 2000;
Subject matter: Short- and medium-term financing, misreporting, and
premium pricing [indicated in bold type];
Required actions: It is the policy of the United States to work to
implement reforms in the IMF to achieve the following goals: primarily
using short-term balance-of-payments financing, limiting the use of
medium-term financing, introducing premium pricing for lending that is
greater than 200 percent of a member‘s quota in the IMF, and redressing
cases of misreporting of information in the context of IMF programs.
Directed vote: No.
Law and date of enactment[B]: P.L. 107-56, sec. 360, Oct. 26, 2001;
Subject matter: Terrorism [indicated in bold type];
Required actions: The Secretary of the Treasury may instruct the USED to
aggressively use the voice and vote of the U.S. to require an auditing
of IMF disbursements to ensure that no funds are paid to persons who
commit, threaten to commit, or support terrorism. In addition, if the
President determines that a country has committed to take actions that
contribute to efforts of the U.S. to respond to, deter, or prevent acts
of international terrorism, Treasury may instruct the USED to support
any loan or other use of IMF funds for such country.
Directed vote: No.
Law and date of enactment[B]: P.L. 107-99, sec. 4, Dec. 21, 2001;
Subject matter: Zimbabwe [indicated in bold type];
Required actions: If the President certifies to the appropriate
congressional committees that certain condition have been met in
Zimbabwe, including the restoration of the rule of law and a commitment
to equitable, legal, and transparent land reform, then the Treasury
should direct the USED to propose to undertake financial and technical
support for Zimbabwe, especially support that is intended to promote
Zimbabwe‘s economic recovery and development, the stabilization of the
Zimbabwean dollar, and the viability of Zimbabwe‘s democratic
institutions. Until the President makes a certification, however, and
except as may be required to meet basic human needs or for good
governance, the Treasury shall instruct the USED to oppose and vote
against any IMF loan, credit, or guarantee to the government of
Zimbabwe or any cancellation or reduction of indebtedness owed by the
government of Zimbabwe to the IMF.
Directed vote: Yes.
Law and date of enactment[B]: P.L. 107-115, sec. 523, Jan. 10, 2002;
Subject matter: Cuba, Iraq, Libya, Iran, Syria, North Korea, and China
[indicated in bold type];
Required actions: None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated to finance indirectly
any assistance or reparation to Cuba, Iraq, Libya, Iran, Syria, North
Korea, or the People‘s Republic of China, unless the President
certifies that the withholding of these funds is contrary to the
national interest of the United States.
Directed vote: No.
Law and date of enactment[B]: P.L. 107-115, sec. 560, Jan. 10, 2002;
Subject matter: Zimbabwe [indicated in bold type];
Required actions: Treasury shall instruct the USED to vote against any
extension of any IMF loans to the government of Zimbabwe, except to
meet basic human needs or to promote democracy, unless the Secretary of
State determines and certifies to the Committees on Appropriations that
the rule of law has been restored in Zimbabwe, including respect for
ownership and title to property, freedom of speech and association.
Directed vote: Yes.
Law and date of enactment[B]: P.L. 107-115, sec. 578, Jan. 10, 2002;
Subject matter: Procurement and Financial Management Reform [indicated
in bold type];
Required actions: Of the funds made available in the Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 2002, 10
percent of the U.S. portion or payment to the IMF shall be withheld by
Treasury until it can certify to the Committees on Appropriations that
the institution is meeting certain conditions, such as that the IMF is
implementing procedures for annual independent external audits of
central bank financial statements for countries making use of IMF
resources under new arrangements or agreements with the Fund.
Directed vote: No.
Law and date of enactment[B]: P.L. 107-245, sec. 6, Oct. 10, 2002;
Subject matter: Sudan [indicated in bold type];
Required actions: After April 10, 2003, and every 6 months thereafter,
if the President certifies that the government of Sudan has not engaged
in good faith negotiations to achieve a permanent and just peace
agreement, or has unreasonably interfered with humanitarian efforts in
Sudan, then the Treasury shall instruct the USED to continue to vote
against, and actively oppose, any extension of any IMF loan, credit or
guarantee to the government of Sudan.
Directed vote: Yes.
Law and date of enactment[B]: P.L. 107-228, sec. 616, Sept. 30, 2002;
Subject matter: Tibet [indicated in bold type];
Required actions: Treasury shall instruct the USED to use the voice and
vote of the US to support projects in Tibet, so long as the projects
are designed in accordance with certain enumerated principles, such as
that the project fosters self-sufficiency and self-reliance of
Tibetans.
Directed vote: No.
Law and date of enactment[B]: P.L. 107-228, sec. 633, Sept. 30, 2002;
Subject matter: East Timor [indicated in bold type];
Required actions: Treasury shall instruct the USED to use the voice,
vote, and influence of the United States to support economic and
democratic development in East Timor.
Directed vote: No.
Source: GAO.
Notes:
The information shown in this enclosure is based on a GAO analysis of
legislative mandates concerning the IMF.
Mandates shown in bold represent mandates that were added since our
last report in January 2001. Some of these mandates simply replace
older mandates that had expired, while other mandates cover new topics.
As of February 4, 2003, mandates contained in FY 2002 Appropriations
Acts remain in effect through February 7, 2003, under a continuing
resolution (P.L. 108-04, Making Further Continuing Appropriations for
the Fiscal Year 2003, and For Other Purposes).
[A] Treasury puts mandates in three broad categories: ’policy,“
’directed vote,“ and ’reporting“ mandates. Policy mandates direct the
United States to foster or urge a certain policy at the IMF. Directed
vote mandates instruct the United States to ’oppose“ or ’vote against“
loans or other IMF assistance. Reporting mandates are outside the scope
of this report.
[B] This column reports the original date of enactment. However, many
of these mandates were amended subsequent to this date.
[End of enclosure 1]
Enclosure 2:
Examples of Broad Policies That Are Addressed in Multiple Laws[A]:
Broad policy objective: Administrative and personnel matters;
Law: 22 U.S.C. 2225 (Dec. 30, 1974);
22 U.S.C 262e (Oct. 3, 1977);
22 U.S.C. 262t (Dec. 19, 1989);
22 U.S.C. 262p-4n (Nov. 5, 1990);
P.L. 107-115, Sec. 530 (Jan. 10, 2002) [indicated in bold type].
Broad policy objective: Banking;
Law: 22 U.S.C. 286cc (Nov. 30, 1983);
22 U.S.C. 286dd (Nov. 30, 1983);
22 U.S.C. 262o-2 (Oct. 21, 1998).
Broad policy objective: Debt;
Law: 22 U.S.C. 286e-8 (Oct. 10, 1978);
22 U.S.C. 286cc (Nov. 30, 1983);
22 U.S.C. 286dd (Nov. 30, 1983);
22 U.S.C. 286ee (Nov. 30, 1983);
22 U.S.C. 262o-2 (Oct. 21, 1998);
22 U.S.C. 286nn (Nov. 29, 1999);
22 U.S.C. 262p-6 (Nov. 29, 1999).
Broad policy objective: Employment;
Law: 22 U.S.C. 2225 (Dec. 30, 1974);
22 U.S.C. 286e-9 (Oct. 10, 1978).
Broad policy objective: Environment;
Law: 22 U.S.C. 286kk (Dec. 19, 1989);
22 U.S.C. 286ll (Oct. 24, 1992);
22 U.S.C. 262o-2 (Oct. 21, 1998);
P.L. 106-429, Sec. 537 (Nov. 6, 2000).
Broad policy objective: Exchange rate stability;
Law: 22 U.S.C. 286y (Nov. 30, 1998);
22 U.S.C. 262o-2 (Oct. 21, 1998).
Broad policy objective: Governance;
Law: 22 U.S.C. 262o-1 (Aug. 23, 1994);
22 U.S.C. 262o-2 (Oct. 21, 1998).
Broad policy objective: Human rights;
Law: 22 U.S.C. 262d (Oct. 3, 1977);
22 U.S.C. 262p-4o (Aug. 23, 1994);
P.L. 104-208, Sec. 570 (Sept. 30, 1996).
Broad policy objective: Investment;
Law: 22 U.S.C. 286e-9 (Oct. 10, 1978);
22 U.S.C. 286s (Oct. 7, 1980);
22 U.S.C. 286gg (Nov. 30, 1983).
Broad policy objective: Labor;
Law: 22 U.S.C. 262p-4p (Aug. 23, 1994);
22 U.S.C. 262o-2 (Oct. 21, 1998).
Broad policy objective: Poverty alleviation and education;
Law: 22 U.S.C. 286kk (Dec. 19, 1989);
22 U.S.C. 286ll (Oct. 24, 1992);
22 U.S.C. 262o-2 (Oct. 21, 1998);
22 U.S.C. 262p-7 (Nov. 29, 1999);
P.L. 107-115, sec. 582 (Jan. 10, 2002)[indicated in bold type].
Broad policy objective: Military spending and military audit;
Law: 22 U.S.C. 286mm (Oct. 24, 1992);
22 U.S.C. 262o-1 (Aug. 23, 1994);
22 U.S.C. 262k-1 (Sept. 30, 1996);
22 U.S.C. 262o-2 (Oct. 21, 1998);
Broad policy objective: Nuclear and chemical nonproliferation;
Law: 22 U.S.C. 2799aa-1 (Apr. 30, 1994);
22 U.S.C. 6302 (Apr. 30, 1994);
22 U.S.C. 6713 (Oct. 21, 1998);
22 U.S.C. 5605 (Dec. 4, 1991).
Broad policy objective: Religious freedom;
Law: 22 U.S.C. 262d (Oct. 3, 1977);
22 U.S.C. 6445 (Oct. 27, 1998).
Broad policy objective: Terrorism [indicated in bold type];
Law: 22 U.S.C. 262d (Oct. 3, 1977);
22 U.S.C. 286e-11 (Oct. 10, 1978);
22 U.S.C. 262p-4q (Aug. 24, 1996);
P.L. 107-56, sec. 360 (Oct. 26, 2001) [indicated in bold type].
Broad policy objective: Trade;
Law: 22 U.S.C. 286k (July 31, 1945);
22 U.S.C. 286bb (Nov. 30, 1983);
22 U.S.C. 286cc (Nov. 30, 1983);
22 U.S.C. 286gg (Nov. 30, 1983);
22 U.S.C. 262k (Aug. 15, 1985);
22 U.S.C. 262h (Oct. 15, 1986) (also repeated in P.L. 107-115, sec. 514
(Jan. 10, 2002)[indicated in bold type];
22 U.S.C. 262n-3 (Oct. 21, 1998);
22 U.S.C. 262o-2 (Oct. 21, 1998);
P.L. 106-429, sec. 545 (Nov. 6, 2000).
Broad policy objective: Transparency;
Law: 22 U.S.C. 286z (Nov. 30, 1983);
22 U.S.C. 286ll (Oct. 24, 1992);
22 U.S.C. 262o-2 (Oct. 21, 1998);
22 U.S.C. 262r-5 (Oct. 21, 1998).
Broad policy objective: Use of IMF resources;
Law: 22 U.S.C. 286u (July 31, 1945);
22 U.S.C. 286ff (Nov. 30, 1983);
22 U.S.C. 286oo (Nov. 6, 2000).
Broad policy objective: Women‘s issues;
Law: 22 U.S.C. 2225 (Dec. 30, 1974);
22 U.S.C. 262k-2 (Sept. 30, 1996).
Broad policy objective: Zimbabwe [indicated in bold type];
Law: P.L. 107-99, sec. 4 (Dec. 21, 2001) [indicated in bold type];
P.L. 107-115, sec. 560 (Jan. 10, 2002) [indicated in bold type].
Source: GAO.
Notes:
The information shown in this enclosure is based on a GAO analysis of
legislative mandates concerning the IMF.
Mandates shown in bold represent mandates that were added since our
last report in January 2001. Some of these mandates simply replace
older mandates that had expired, while other mandates cover new topics.
[A] Treasury puts mandates in three broad categories: ’policy,“
’directed vote,“ and ’reporting“ mandates. Policy mandates direct the
United States to foster or urge a certain policy at the IMF. Directed
vote mandates instruct the United States to ’oppose“ or ’vote against“
loans or other IMF assistance. Reporting mandates are outside the scope
of this report.
[End of enclosure 2]
Enclosure 3:
Comments from the Department of the Treasury:
Department Of The Treasury:
Under Secretary:
Washington, D.C.:
January 30, 2003:
Mr. Joseph A. Cristoff:
Director, International Affairs and Trade Issues:
General Accounting Office:
441 G Street, NW:
Washington, DC 20548:
Dear Mr. Cristoff:
Thank you for your letter of January 21, 2003, and the opportunity to
review the draft report, "Treasury Maintains Formal Process to Advance
U.S. Agenda at the International Monetary Fund."
The draft report accurately assesses the process through which Treasury
has worked to advance IMF policies as set out in legislation. In
particular, I am pleased that the draft report recognizes the
effectiveness of the internal task force on legislative mandates
regarding the IMF and of the new efforts made to address upcoming
issues at the IMP on a proactive basis.
In its 2001 report, "Efforts to Advance U.S. Policies at the Fund," GAO
concluded that the impact on U.S. influence at the Fund of the 60 legal
requirements is "uncertain." The draft report identifies seven new
requirements. We remain concerned that the extensive mandates have the
potential to undermine our effectiveness in influencing the
institution, and we plan to propose a reduction and consolidation of
legislative mandates to remove unnecessary provisions.
Finally, I extend my thanks to you and your staff for an efficient and
candid review.
Sincerely,
Signed by:
John B. Taylor:
Under Secretary for International Affairs:
[End of enclosure 3]
Footnotes:
[1] See U.S. General Accounting Office, International Monetary Fund:
Efforts to Advance U.S. Policies at the Fund, GAO-01-214 (Washington,
D.C.: Jan. 29, 2001).
[2] The Executive Board oversees the day-to-day business of the Fund.
The Board comprises 24 executive directors who are appointed or elected
by member countries or by groups of member countries. The President
appoints, with the advice and consent of the Senate, the U.S. Executive
Director to represent the United States on the Board.
[3] P.L. 106-113 sec. 504 (e).
[4] GAO-01-214.
[5] Although the task force helps facilitate coordination between
Treasury officials and the U.S. Executive Director, it is not the final
arbiter for determining the U.S. policy position toward the IMF on any
given issue. The task force is not a review or approval mechanism to
give Treasury sanction to pursue individual mandates.
[6] Within enclosures I and II, mandates shown in bold represent
mandates that were added since our last report in January 2001. Some of
these mandates simply replace older mandates that had expired, while
other mandates cover new topics.
[End of section]
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U.S. General Accounting Office:
441 G Street NW, Room 7149:
Washington, D.C. 20548:
