[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 616 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 616
To authorize the tenth general capital increase for the Inter-American
Development Bank and to strengthen recovery efforts in Latin America
and the Caribbean related to the COVID-19 pandemic, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 6 (legislative day, March 5), 2021
Mr. Menendez (for himself, Mr. Rubio, Mr. Kaine, Mr. Cassidy, and Mr.
Cardin) introduced the following bill; which was read twice and
referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To authorize the tenth general capital increase for the Inter-American
Development Bank and to strengthen recovery efforts in Latin America
and the Caribbean related to the COVID-19 pandemic, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Inter-American Development Bank
General Capital Increase Act of 2021''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The region of Latin America and the Caribbean has
suffered severely from the coronavirus disease 2019 (commonly
referred to as ``COVID-19''), with more than 18,000,000
confirmed cases since February 2020, according to the Inter-
American Development Bank.
(2) In 2020, as a result of COVID-19, gross domestic
product per capita fell 8.5 percent across Latin America and
the Caribbean, entirely reversing steady advancements in
regional gross domestic product per capita since 2010,
according to the Economic Commission for Latin America and the
Caribbean.
(3) Initial assessments by the Economic Commission for
Latin America and the Caribbean indicate that, throughout Latin
America and the Caribbean, the COVID-19 pandemic will have--
(A) pushed an additional 45,500,000 people into
poverty, increasing the total number of people living
in poverty from 185,500,000 to 230,900,000, or
approximately 37.3 percent of the Latin American and
Caribbean population, in 2020; and
(B) caused the total number of individuals living
in extreme poverty to increase by 28,500,000 from
67,700,000 to 96,200,000, or approximately 15.5 percent
of the Latin American and Caribbean population, in
2020.
(4) The Inter-American Development Bank estimated in May
2020 that 17,000,000 formal jobs would be lost as a result of
the pandemic, increasing the share of jobs in informal sectors
of the region's economies to 62 percent. September 2020
findings from the International Labour Organization noted that
34,000,000 workers across 9 countries in the region lost their
jobs in the first half of 2020.
(5) The pandemic also has complicated the humanitarian and
development challenges countries across Latin America and the
Caribbean face as hosts to more than 4,300,000 Venezuelan
refugees and migrants, prompting the Inter-American Development
Bank to launch a migration initiative that aims to provide
$85,000,000 in grants and leverage investments of
$1,100,000,000 in social protection, health, education, and
employment.
(6) The pandemic has severely disrupted education systems
across Latin America and the Caribbean because of a lack of
equipment and pedagogical tools required for effective remote
schooling. According to data compiled by the United Nations
Educational, Scientific and Cultural Organization and the
Inter-American Development Bank, fewer than 30 percent of low-
income families impacted by decisions to halt in-person classes
have access to a computer and only around 60 percent of
secondary school teachers have the skills needed for virtual
instruction.
(7) Countries across Latin America and the Caribbean
continue to face enduring economic challenges, including
persistent inequality, high levels of tax evasion and
avoidance, and elevated debt levels.
(8) The stability, sustainable development, and inclusive
growth of economies in Latin America and the Caribbean is in
the national interest of the United States, as the region
accounts for 21.7 percent of United States trade in goods in
2019, according to the Economic Commission for Latin America
and the Caribbean.
(9) The Inter-American Development Bank is the world's
oldest and largest regional development bank, and has worked
continuously since 1959 to foster economic, social, and
institutional development in Latin America and the Caribbean.
(10) The Inter-American Development Bank is uniquely
positioned to advance post-pandemic recovery efforts and to
mitigate the social and economic impacts of the pandemic. As
early as March 2020, the Inter-American Development Bank
announced the allotment of up to $12,000,000,000 toward
immediate public health responses, efforts to revitalize social
safety nets for vulnerable populations, and strategic economic
productivity and employment initiatives.
(11) The 48 borrowing and non-borrowing member countries of
the Inter-American Development Bank last agreed to a ninth
general capital increase as part of the Bank's annual meeting
on March 20-22, 2010.
(12) Under the Coronavirus Aid, Relief, and Economic
Security Act (Public Law 116-136; 134 Stat. 281) (commonly
referred to as the ``CARES Act''), enacted on March 27, 2020,
Congress approved capital stock increases for the International
Finance Corporation and the African Development Bank to
strengthen the ``ability of foreign countries to prevent,
prepare for, and respond to coronavirus and to the adverse
economic impacts of coronavirus''.
SEC. 3. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the spread of SARS-CoV-2, the virus that causes COVID-
19, has had a significant impact on economic, social, and
humanitarian conditions throughout Latin America and the
Caribbean;
(2) the Inter-American Development Bank is the preeminent
multilateral development bank dedicated to regional economic
and social development and the betterment of lives across Latin
America and the Caribbean;
(3) the Bank has played an integral role in supporting
member countries with the coordination and implementation of
policies to mitigate the effects of the COVID-19 pandemic, the
Venezuelan refugee and migration crisis, and other crises in
the Western Hemisphere;
(4) a capital increase for the Bank would greatly increase
its capacity to provide financing, institutional knowledge, and
technical support to foster recovery and inclusion initiatives
between regional governments, private sector entities, and
international organizations; and
(5) the United States, as a founding member of the Bank,
should support a capital stock increase to ensure the Bank is
prepared to offer additional support to member countries
severely impacted by the COVID-19 pandemic and other crises.
SEC. 4. TENTH GENERAL CAPITAL INCREASE.
(a) Support for a General Capital Increase.--The President shall
take steps to support a tenth general capital increase for the Inter-
American Development Bank.
(b) Diplomatic Engagement.--The President shall advance diplomatic
engagement to build support among member countries of the Bank for a
tenth general capital increase for the Bank in order to strengthen the
capacity of the Bank--
(1) to support Latin American and Caribbean countries in
their efforts to address the COVID-19 pandemic and the related
economic impact; and
(2) to advance inclusive economic and social development in
the Americas.
(c) Progress Report.--Not later than 45 days after the date of the
enactment of this Act, the President shall submit to the Committee on
Foreign Relations of the Senate and the Committee on Financial Services
of the House of Representatives a report detailing efforts to carry out
subsections (a) and (b).
(d) Tenth Capital Increase.--The Inter-American Development Bank
Act (22 U.S.C. 283 et seq.) is amended by adding at the end the
following:
``SEC. 42. TENTH CAPITAL INCREASE.
``(a) Vote Authorized.--The United States Governor of the Bank is
authorized to vote in favor of a resolution to increase the capital
stock of the Bank by $80,000,000,000 over a period not to exceed 5
years.
``(b) Subscription Authorized.--
``(1) In general.--The United States Governor of the Bank
may subscribe on behalf of the United States to 1,990,714
additional shares of the capital stock of the Bank.
``(2) Limitation.--Any subscription by the United States to
the capital stock of the Bank shall be effective only to such
extent and in such amounts as are provided in advance in
appropriations Acts.
``(c) Limitations on Authorization of Appropriations.--
``(1) In general.--In order to pay for the increase in the
United States subscription to the Bank under subsection (b),
there is authorized to be appropriated $24,014,857,191 for
payment by the Secretary of the Treasury.
``(2) Allocation of funds.--Of the amount authorized to be
appropriated under paragraph (1)--
``(A) $600,371,430 shall be for paid in shares of
the Bank; and
``(B) $23,414,485,761 shall be for callable shares
of the Bank.''.
SEC. 5. SUPPORT FOR ENVIRONMENTAL SUSTAINABILITY INITIATIVES OF INTER-
AMERICAN DEVELOPMENT BANK.
(a) Findings.--Congress makes the following findings:
(1) The Inter-American Development Bank has served as an
executing agency for the Global Environment Facility, a grant-
making and financing facility supported by 182 countries to
address global environmental issues and sustainable
development.
(2) The Bank has never had its own environmental grant-
making and financing facility despite the fact that the
Americas are home to the world's largest tropical rain forest
and include countries significantly affected by natural
disasters annually.
(b) Sense of Congress.--It is the sense of Congress that the Bank
should--
(1) establish its own environmental grant-making and
financing facility in order to implement and expand
environmental policies, metrics, and standards, to strengthen
resilience and disaster preparedness, and to improve
sustainability and conservation; and
(2) continue to strengthen environmental safeguards as an
element of economic development in the Western Hemisphere.
(c) Diplomatic Engagement.--The President shall advance diplomatic
engagement to build support among member countries of the Bank for the
creation of an environmental fund and financing facility as part of the
tenth general capital increase for the Bank.
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