---
kind: "section"
citation: "22 U.S.C. § 286ll"
title: "22"
title_heading: "Foreign Relations and Intercourse"
number: "286ll"
heading: "Fund policy changes"
release: "119-102"
url: "https://uscodex.org/usc/22/286ll"
units:
  - "Chapter 7 — International Bureaus, Congresses, Etc."
  - "Subchapter XV — International Monetary Fund and Bank for Reconstruction and Development"
---

# §286ll. Fund policy changes

- (a) **Policy changes within IMF—** The [Secretary](/usc/22/277d–43.md?p=5) of the Treasury shall instruct the [United States](/usc/22/1395.md?p=a-1) [Executive Director](/usc/22/10601.md?p=5) of the [Fund](/usc/22/2431a.md?p=9) to promote regularly and vigorously in [program](/usc/22/3383.md?p=6) discussions and quota increase negotiations the following proposals:
  - (1) **Poverty alleviation, reduction of barriers to economic and social progress, and progress toward environmentally sound policies and programs—**
    - (A)
      - (i) Considerations of poverty alleviation and the reduction of barriers to economic and social progress should be incorporated into all [Fund](/usc/22/2431a.md?p=9) [programs](/usc/22/3383.md?p=6) and all consultations under article IV of the Articles of [Agreement](/usc/22/2431a.md?p=7) of the [Fund](/usc/22/2431a.md?p=9).
      - (ii) Preparation of Policy Framework Papers should be extended to all nations which have [Fund](/usc/22/2431a.md?p=9) [programs](/usc/22/3383.md?p=6) and active Bank or International Development Association lending [programs](/usc/22/3383.md?p=6), and existence of a Policy Framework Paper should be a precondition for new lending to such nations by the [Fund](/usc/22/2431a.md?p=9).
      - (iii) All Policy Framework Papers should articulate the principal poverty, economic, and social measures that the borrowing nation needs to address, and this portion of the Policy Framework Paper (or a summary thereof that includes specific measures and timing) should be made available when the Policy Framework Paper is submitted to the [Executive Directors](/usc/22/10601.md?p=5) of the Bank and of the [Fund](/usc/22/2431a.md?p=9) for consideration.
      - (iv) In considering whether to allocate resources of the [Fund](/usc/22/2431a.md?p=9) to a borrower, the [Fund](/usc/22/2431a.md?p=9) should take into consideration the nature of the [program](/usc/22/3383.md?p=6) and commitment of the borrower to address the issues referred to in [clause (iii)](#a-1-A-iii).
      - (v) The [Fund](/usc/22/2431a.md?p=9) should establish procedures to enable the [Fund](/usc/22/2431a.md?p=9) to cooperate with the Bank in evaluating the effectiveness of the measures referred to in [clause (iii)](#a-1-A-iii), at the levels of policy, project design, monitoring, and reporting, in the [international financial institutions](/usc/22/262r.md?p=c-2) and in the borrowing nations.
    - (B)
      - (i) The [Fund](/usc/22/2431a.md?p=9) should be encouraged to make further progress toward environmentally sound policies and [programs](/usc/22/3383.md?p=6).
      - (ii) The [Fund](/usc/22/2431a.md?p=9) should incorporate environmental considerations into all [Fund](/usc/22/2431a.md?p=9) [programs](/usc/22/3383.md?p=6), including consultations under article IV of the Articles of [Agreement](/usc/22/2431a.md?p=7) of the [Fund](/usc/22/2431a.md?p=9).
      - (iii) The [Fund](/usc/22/2431a.md?p=9) should be encouraged to support the efforts of nations to implement systems of natural resource accounting in their national income accounts.
      - (iv) The [Fund](/usc/22/2431a.md?p=9) should be encouraged to assist and cooperate fully with the statistical research being undertaken by the Organization for Economic Cooperation and Development and by the United Nations in order to facilitate development and adoption of a generally applicable system for taking account of the depletion or degradation of natural resources in national income accounts.
      - (v) The [Fund](/usc/22/2431a.md?p=9) should be encouraged to consider and implement, as appropriate, revisions in its national income reporting systems consistent with such new systems as are of general applicability.
  - (2) **Policy audits—**
    - (A) The [Fund](/usc/22/2431a.md?p=9) should conduct periodic audits to review systematically the policy prescriptions recommended and required by the [Fund](/usc/22/2431a.md?p=9) in the areas of poverty and the environment.
    - (B) The purposes of such audits would be—
      - (i) to determine whether the [Fund](/usc/22/2431a.md?p=9)’s objectives were met; and
      - (ii) to evaluate the social and environmental impacts of the implementation of the policy prescriptions.
    - (C) Such audits would have access to all ongoing [programs](/usc/22/3383.md?p=6) and activities of the [Fund](/usc/22/2431a.md?p=9) and the ability to review the effects of [Fund](/usc/22/2431a.md?p=9)-supported [programs](/usc/22/3383.md?p=6), on a country-by-country basis, with respect to poverty, economic development, and environment.
    - (D) Such audits should be made public as appropriate with due respect to confidentiality.
  - (3) **Ensuring policy options that increase the productive participation of the poor—** The [Fund](/usc/22/2431a.md?p=9) should establish procedures that ensure the focus of future economic reform [programs](/usc/22/3383.md?p=6) approved by the [Fund](/usc/22/2431a.md?p=9) on policy options that increase the productive participation of the poor in the economy.
  - (4) **Public access to information—**
    - (A) The [Fund](/usc/22/2431a.md?p=9) should establish procedures for public access to information.
    - (B) Such procedures shall seek to ensure access of the public to information while paying due regard to appropriate confidentiality.
    - (C) Policy Framework Papers and the supporting documents prepared by the [Fund](/usc/22/2431a.md?p=9)’s mission to a country are examples of documents that should be made public at an appropriate time and in appropriate ways.
- (b) **Progress report—** Each [annual report](/usc/22/6402.md?p=2) of the National Advisory Council on International Monetary and Financial Policies shall describe the following:
  - (1) The actions that the [United States](/usc/22/1395.md?p=a-1) [Executive Director](/usc/22/10601.md?p=5) and other officials have taken to convince the [Fund](/usc/22/2431a.md?p=9) to adopt the proposals set forth in [subsection (a)](#a) through formal initiatives before the [Board](/usc/22/2431a.md?p=4) and management of the [Fund](/usc/22/2431a.md?p=9), through bilateral discussions with other member nations, and through any further quota increase negotiations.
  - (2) The status of the progress being made by the [Fund](/usc/22/2431a.md?p=9) in implementing the proposals set forth in [subsection (a)](#a).
- (c) **Study—** The [Secretary](/usc/22/277d–43.md?p=5) of the Treasury shall instruct the [United States](/usc/22/1395.md?p=a-1) [Executive Director](/usc/22/10601.md?p=5) to the [Fund](/usc/22/2431a.md?p=9) to urge the [Fund](/usc/22/2431a.md?p=9)—
  - (1) to explore ways to increase the involvement and participation of important ministries, national development experts, environmental experts, free-market experts, and other legitimate experts and representatives from the loan-recipient country in the development of [Fund](/usc/22/2431a.md?p=9) [programs](/usc/22/3383.md?p=6); and
  - (2) to report on the status of [Fund](/usc/22/2431a.md?p=9) efforts in this regard.

## Source credit

(July 31, 1945, ch. 339, § 59, as added Pub. L. 102–511, title X, § 1002, Oct. 24, 1992, 106 Stat. 3357.)