---
kind: "section"
citation: "22 U.S.C. § 286s"
title: "22"
title_heading: "Foreign Relations and Intercourse"
number: "286s"
heading: "Consideration of basic human needs in economic adjustment programs supported by Fund"
release: "119-102"
url: "https://uscodex.org/usc/22/286s"
units:
  - "Chapter 7 — International Bureaus, Congresses, Etc."
  - "Subchapter XV — International Monetary Fund and Bank for Reconstruction and Development"
---

# §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](/usc/22/277d–43.md?p=5) 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](/usc/22/3383.md?p=6) to deal with their balance of payments difficulties, to design those [programs](/usc/22/3383.md?p=6) 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](/usc/22/3383.md?p=6) 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](/usc/22/3383.md?p=6) supported by [Fund](/usc/22/2431a.md?p=9) resources and the reinforcement of those [programs](/usc/22/3383.md?p=6) by longer term efforts to promote sustained growth and improved living conditions—
  - (1) [United States](/usc/22/1395.md?p=a-1) representatives to the [Fund](/usc/22/2431a.md?p=9) shall recommend and shall work for changes in [Fund](/usc/22/2431a.md?p=9) guidelines, policies, and decisions that would—
    - (A) permit stand-by arrangements to be extended beyond three years, as necessary to enable [Fund](/usc/22/2431a.md?p=9) members to implement their economic adjustment [programs](/usc/22/3383.md?p=6) successfully;
    - (B) provide that in approving any economic adjustment [program](/usc/22/3383.md?p=6) the [Fund](/usc/22/2431a.md?p=9) shall take into account the effect such [program](/usc/22/3383.md?p=6) will have on jobs, investment, real per capita income, the gap in wealth between the rich and poor, and social [programs](/usc/22/3383.md?p=6) such as health, housing, and education, in order to seek to minimize the adverse impact of those adjustment [programs](/usc/22/3383.md?p=6) on basic human needs; and
    - (C) provide that letters of intent submitted to the [Fund](/usc/22/2431a.md?p=9) in support of an economic adjustment [program](/usc/22/3383.md?p=6) reflect that the member country has taken into account the effect such [program](/usc/22/3383.md?p=6) will have on the factors listed in [subparagraph (B)](#b-1-B);
  - (2)
    - (A) before voting on the approval of any standby arrangement with respect to any economic adjustment [program](/usc/22/3383.md?p=6), the [United States](/usc/22/1395.md?p=a-1) [Executive Director](/usc/22/10601.md?p=5) shall review—
      - (i) any analysis of factors prepared by the [Fund](/usc/22/2431a.md?p=9) or the member country in accordance with subparagraphs [(B)](#b-1-B) and [(C)](#b-1-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](/usc/22/1395.md?p=a-1) Governor of the [Fund](/usc/22/2431a.md?p=9) which examines the effect of the [program](/usc/22/3383.md?p=6) on the factors listed in [subparagraph (B)](#b-1-B) of paragraph (1); and
    - (B) 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) 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](/usc/22/1395.md?p=a-1) representatives to the [Fund](/usc/22/2431a.md?p=9), 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](/usc/22/3383.md?p=6) in association with economic adjustment [programs](/usc/22/3383.md?p=6) supported by [Fund](/usc/22/2431a.md?p=9) resources which (A) will, among other things, promote employment, investment, real income per capita, improvements in income distribution, and the objectives of social [programs](/usc/22/3383.md?p=6) 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](/usc/22/3383.md?p=6) on the poor;
  - (4) [United States](/usc/22/1395.md?p=a-1) representatives to the [Fund](/usc/22/2431a.md?p=9) and the Bank shall seek amendments to decisions on policies on the use of [Fund](/usc/22/2431a.md?p=9) and Bank resources to provide that, where countries are seeking Extended [Fund](/usc/22/2431a.md?p=9) [Facility](/usc/22/2431a.md?p=8) or upper credit tranche drawings from the [Fund](/usc/22/2431a.md?p=9) and are eligible to receive financing from the Bank, the [Fund](/usc/22/2431a.md?p=9) and Bank will coordinate their financing activities in order—
    - (A) to take into account the effects of economic adjustment [programs](/usc/22/3383.md?p=6) 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](/usc/22/3383.md?p=6) supported by [Fund](/usc/22/2431a.md?p=9) resources, and
    - (C) to provide, as appropriate, Bank financing for [programs](/usc/22/3383.md?p=6) 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](/usc/22/1395.md?p=a-1) representatives to the [Fund](/usc/22/2431a.md?p=9) and the Bank shall request the [Fund](/usc/22/2431a.md?p=9) and the Bank to provide periodic analyses of the effects of economic adjustment [programs](/usc/22/3383.md?p=6) supported by [Fund](/usc/22/2431a.md?p=9) or Bank financing on jobs, investment, real income per capita, income distribution, and social [programs](/usc/22/3383.md?p=6) such as health, housing, and education.

## Source credit

(July 31, 1945, ch. 339, § 33, as added Pub. L. 96–389, § 2(a), Oct. 7, 1980, 94 Stat. 1551; amended Pub. L. 101–240, title V, § 541(d)(1), Dec. 19, 1989, 103 Stat. 2518.)

## Notes

### Editorial Notes

### 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.

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 96–389, § 12, Oct. 7, 1980, 94 Stat. 1555, 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.”