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Multilateral Development Banks:
U.S. Contributions FY1998-FY2009
Jonathan E. Sanford
Specialist in International Trade and Finance
January 27, 2010
Congressional Research Service
7-5700
www.crs.gov
RS20792
CRS Report for Congress
P
repared for Members and Committees of Congress
c11173008
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
Summary
This report shows in tabular form how much the Administration requested and how much
Congress appropriated during the past 11 years for U.S. payments to the multilateral development
banks (MDBs). It also provides a brief description of the MDBs and the ways they fund their
operations. It will be updated periodically. Three companion reports provide further information
on the MDBs. See CRS Report RS20793, Multilateral Development Banks: Basic Background,
by Jonathan E. Sanford, CRS Report RS20791, Multilateral Development Banks: Procedures for
U.S. Participation, by Jonathan E. Sanford, and CRS Report RS22134, International Financial
Institutions: Funding U.S. Participation, by Jonathan E. Sanford. For further information, see
CRS Report RL33969, The World Bank’s International Development Association (IDA), by
Martin A. Weiss, and CRS Report RS21437, The Asian Development Bank, by Martin A. Weiss.
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
Contents
U.S. Participation in the MDBs ................................................................................................... 1
The MDBs and Their Programs................................................................................................... 1
Funding MDB Assistance Programs ............................................................................................ 2
U.S. Appropriations for MDBs.................................................................................................... 3
Tables
Table 1. U.S. Contribution and Voting Shares in the MDBs ......................................................... 2
Table 2. U.S. Contributions or Subscriptions to Multilateral Development Banks,
Millions of U.S. Dollars ........................................................................................................... 4
Contacts
Author Contact Information ........................................................................................................ 9
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
U.S. Participation in the MDBs
The United States is a member of five MDBs: the World Bank, African Development Bank
(AfDB), Asian Development Bank (AsDB), European Bank for Reconstruction and Development
(EBRD), and Inter-American Development Bank (IDB). It also belongs to two similar
organizations, the North American Development Bank (NADBank) and the International Fund for
Agricultural Development (IFAD). For FY2009, the Administration proposed and Congress
appropriated funds for U.S.m participation in two new World Bank facilities, the Clean
Technology Fund (CTF) and the Strategic Climate Fund (SCF).
The MDBs and Their Programs
The MDBs have similar programs, though they all differ somewhat in their institutional structure
and emphasis. Each has a president and executive board that manages or supervises all their
programs and operations. Except for the EBRD, which makes only market-based loans, all the
MDBs make both market-based loans to middle-income developing countries and concessional
loans to the poorest countries. Their loans are made to governments or to organizations having
government repayment guarantees. In each MDB, the same staff prepares both the market-based
and the concessional loans, using the same standards and procedures for both.1 The main
differences between them are the repayment terms and the countries which qualify for them.2
The MDBs also have specialized facilities which have their own operating staff and management
but report to the bank’s president and executive board. The World Bank’s International Finance
Corporation (IFC) and the IDB’s Inter-American Investment Corporation (IIC) make loans to or
equity investments in private sector firms in developing countries (on commercial terms) without
government repayment guarantees. The AsDB makes similar loans from its market-rate loan
account. The World Bank’s Multilateral Investment Guarantee Agency (MIGA) underwrites
private investments in developing countries (on commercial terms) to protect against non-
economic risk. At the IDB, the Multilateral Investment Fund (MIF) helps Latin American
countries institute policy reforms aimed at stimulating domestic and international investment. It
also funds worker retraining and programs for small- and micro-enterprises. The MIF originated
as part of President Bush’s 1990 Enterprise for the Americas Initiative (EAI.)
The NADBank was created by the North American Free Trade Agreement (NAFTA) to fund
environmental infrastructure projects in the U.S.-Mexico border region. The International Fund
for Agricultural Development, created in 1977, focuses on reducing poverty and hunger in poor
countries through agricultural development. The Global Environment Facility (GEF) funds
projects dealing with international environmental problems. The GEF’s assistance program is
managed by the World Bank.
1 The International Development Association (IDA) is the World Bank’s concessional loan affiliate. The Asian
Development Fund (AsDF), African Development Fund (AFDF), and Fund for Special Operations (FSO) are the
comparable programs at the AsDB, AfDB, and IDB.
2 MDB market-based loans cost a little more than the rate the banks pay to borrow funds commercially. IDA and AFDF
charge about 3/4 of 1% annually. The IDB charges 1% to 4% annually, depending on the project and the borrower.
Most borrowers from the concessional programs have per capita incomes of less (often much less) than $900 annually.
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
Funding MDB Assistance Programs
The MDBs’ concessional aid programs are funded with money donated by their wealthier
member country governments. Loans from the MDBs’ market-rate loan facilities are funded with
money borrowed in world capital markets. The IFC and IIC fund their loans and equity
investments partly with money contributed by their members and partly with funds borrowed
from commercial capital markets. The MDBs’ borrowings are backed by the subscription s of
their member countries. They provide a small part of their capital subscriptions (3 to 5 percent of
the total for most MDBs) in the form of paid-in capital. The rest they subscribe as callable capital.
Callable capital is a contingent liability, payable only if an MDB becomes bankrupt and lacks
sufficient funds to repay its own creditors. It cannot be called to provide the banks with additional
loan funds.
Countries’ voting shares are determined mainly by the size of their contributions. The United
States is the largest stockholder in most MDBs. Japan has provided more to the AsDF and AfDF,
while Nigeria and Egypt have subscribed larger shares in the AfDB. Periodically, as the stock of
uncommitted MDB funds begins to run low, the major donors negotiate a new funding plan that
specifies their new contribution shares.
Table 1 shows the U.S. contribution share and voting share for all MDB programs. In most
banks, countries get a few votes because they are members, regardless of the size of their capital
subscription. Thus, for banks with a large number of small members, the voting share of large
subscribers such as the United States may be a little smaller than their share in providing the
bank’s resources. Voting shares are the same for both market-based and concessional loans in the
AsDB and IDB.
Table 1. U.S. Contribution and Voting Shares in the MDBs
Voting
Voting
Contribution Share
Share
Contribution Share
Share
World Bank Group
Inter-American Dev Bank
IBRD 16.8%
16.4%
IDB
30.3%
30.0%
IDA 22.1%
12.9%
FSO
50.5%
30.0%
IFC 24.1%
23.6%
IIC
25.5%
25.1%
MIGA 18.9%
15.1%
MIF
39.4%
29.1%
Asian Development Bank
African Development Bank
AsDB
15.6% 12.8%
AfDB 6.4% 6.4%
AsDF
12.6% 12.8%
AfDF
12.7% 6.1%
EBRD
10.1% 9.8%
IFAD
13.6% 13.6%
NADBank
50.0% 50.0%
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
In IDA, by contrast, the donors have separated the issues of voting power and contributions. In
recent decades, they have chosen not to expand their voting share as they contribute new funds to
IDA. Thus, while the United States, Canada, Japan, the countries of the European Union, and the
wealthy Arab oil states have donated 99% of IDA’s resources, they have 65% of the vote. This is
more than enough to protect their interests, as decisions are reached by majority vote. The
arrangement diffuses possible tensions by giving the developing countries a sense that their
voices are heard.
Before 1976, the United States was the only significant contributor to the IDB’s Fund for Special
Operations. Non-regional countries have since joined the IDB and the FSO has become a much
smaller program and he U.S. share has declined substantially. The African Development Bank
controls 50% of the vote in the AFDF, though it has contributed only about 1% of the
concessional loan program’s resources. This maintains a semblance of African control. The
interests of the donors are protected by the fact that a three-quarters majority is required to
approve AFDF loans.
U.S. Appropriations for MDBs
Table 2 shows the amounts the Administration has requested and Congress has appropriated
(budget authority) annually since FY1998 for U.S. contributions and subscriptions to the
multilateral banks. The numbers in parentheses are subscriptions to MDB callable capital. Since
1981, the United States no longer appropriates money to back its callable capital subscriptions to
the MDBs. Rather Congress sets annual program ceilings in the Foreign Operations
Appropriations Act specifying the amount of callable capital the United States may subscribe in
each MDB during the current fiscal year.
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
Table 2. U.S. Contributions or Subscriptions to Multilateral Development Banks, Millions of U.S. Dollars
(Includes recisions)
1998a 1998 1999 1999 2000 2000 2001 2001
Request Approp Request Approp. Request Approp. Request Approp
WORLD BANK GROUP
Int’l Bank for Reconstruction & Development
(IBRD)
—IBRD
capital,
paid
in
-.- -.- -.-
-.- -.- -.- -.- -.-
—(IBRD
capital,
callable)
-.- -.- -.- -.- -.-
Int’l
Development
Association
(IDA)
1,034.5
1,034.5 800.0 800.0 803.4 775.0 836.0 775.0
Int’l
Finance
Corporation
(IFC)
-.- -.- -.- -.- -.- -.- -.- -.-
Multilateral
Investment
Guarantee
Agency
(MIGA)
—MIGA paid in capital
-.-
-.-
-.-
-.-
10.0
4.0
16.0
10.0
—(MIGA
capital,
cal able)
-.-
-.-
-.-
-.- (50.0) (20.0) (80.0) (50.0)
Global Environmental Facility (GEF) 100.0
47.5
300.0 168.0 143.3 35.8 176.0 108.0
ASIAN DEVELOPMENT BANK
—AsDB ordinary capital, paid in
13.2
13.2
13.2
13.2
13.7
13.7
-.-
-.-
—(AsDB ordinary capital, cal able)
(647.9)
(647.9)
(647.9)
(647.9)
(672.7)
(672.7)
-.-
-.-
Asian
Development
Fund
(AsDF)
150.0 150.0 250.0 210.0 177.0 77.0 125.0 72.0
AFRICAN DEVELOPMENT BANK
—AfDB ordinary capital, paid in
-.-
-.-
-.-
-.-
5.1
4.1
6.1
6.1
—(AfDB ordinary capital, cal able)
-.-
-.-
-.-
-.-
(80.0)
(64.0)
(64.0)
(64.0)
African
Development
Fund
(AfDF)
50.0 45.0 155.0 128.0 127.0 128.0 100.0 100.0
CRS-4
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
INTER-AMERICAN DEVELOPMENT BANK
GROUP
—IDB ordinary capital, paid in
25.6
25.6
25.6
25.6
25.6
25.6
-.-
-.-
—(IDB
ordinary
capital,
cal able)
(1,503.7) (1,503.7)) (1,503.7) (1,503.7) (1,503.7) (1,503.7)
-.-
-.-
Fund for Special Operations (FSO)
20.8
20.8
21.2
21.2
-.-
Inter-American
Investment
Corp
(IIC)
-.- -.-
-.- -.- 25.0 16.0 34.0 25.0
Multilateral
Investment
Fund
(MIF)
30.0 30.0 50.0 50.0 28.5 -.- 25.9 10.0
EUROPEAN BANK FOR RECON &
DEVELOP
—EBRD
paid
in
capital
35.8 35.8 35.8 35.8 35.8 35.8 35.8 35.8
—(EBRD
capital,
cal able)
(123.2) (123.2) (123.2) (123.2) (123.2) (123.2) (123.3) (123.3)
INTL FUND FOR AGRICULTURAL
-.-
5.0
DEVELOP
NORTH AMERICAN DEVELOPMENT
BANK
—NADBank
capital,
paid-in
56.3
56.3 -.- -.- -.- -.- -.- -.-
—(NADBank
capital,
cal able)
(318.8)
(318.8) -.- -.- -.- -.- -.- -.-
TOTAL
MDB
APPROPRIATION
1,459.9 1,394.8 1,650.8 1,451.3 1,494.4 1,115.0 1,434.8 1,146.9
2002 2002 2003 2003 2004 2004 2005 2005
Request Approp Request Approp Request Approp Request Approp
WORLD BANK GROUP
Int’l
Bank
for
Reconstruction
&
Development
—IBRD
capital,
paid
in
-.- -.- -.- -.- -.- -.- -.- -.-
—(IBRD
capital,
callable)
-.- -.- -.- -.- -.- -.- -.- -.-
Int’l
Development
Association
(IDA)
803.0 792.4 874.3 844.5 976.8 913.2 1061.3 843.2
Int’l
Finance
Corporation
(IFC)
-.- -.- -.- -.- -.- -.- -.- -.-
CRS-5
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
Multilateral
Investment
Guarantee
Agency
—MIGA paid in capital
10.0
5.0
3.6
1.6
4.0
1.1
-.-
-.-
—(MIGA capital, cal able)
(50.0)
(25.0)
(18.0)
(8.0)
(20.0)
(4.5)
-.-
-.-
ASIAN DEVELOPMENT BANK
—AsDB
ordinary
capital,
paid
in
-.- -.- -.- -.- -.- -.- -.- -.-
—(ordinary
capital,
callable)
-.- -.- -.- -.- -.- -.- -.- -.-
Asian
Development
Fund
(AsDF)
103.0 98.0 147.4 97.2 151.9 144.4 112.2 99.2
AFRICAN DEVELOPMENT BANK
—AfDB
ordinary
capital,
paid
in
5.1 5.1 5.1 5.1 5.1 5.1 5.1 4.1
—(AfDB
ordinary
capital,
cal able)
(80.0) (80.0) (80.0) (80.0) (80.0) (79.6) (79.5) (79.5)
African
Development
Fund
(AfDF)
100.0 100.0 118.1 107.4 118.1 112.7 118.0 105.2
INTER-AMERICAN DEVELOPMENT BANK
GROUP
—IDB
ordinary
capital,
paid
in
-.- -.- -.- -.- -.- -.- -.- -.-
—(IDB
ordinary
capital,
callable)
-.- -.- -.- -.- -.- -.- -.- -.-
Fund
for
Special
Operations
(FSO)
Inter-American Investment Corp (IIC)
25.0
18.0
30.3
18.2
30.9
-.-
-.-
-.-
Multilateral
Investment
Fund
(MIF)
-.- -.- 29.6 24.4 32.6 25.0 25.0 10.9
EUROPEAN BANK FOR RECON &
DEVELOP
—EBRD
capital,
paid
in
35.8 35.8 35.8 35.8 35.4 35.4 35.4 35.2
—(EBRD
capital,
cal able)
(123.3) (123.3) (123.3) (123.3) (123.3) (122.0) (122.0) (122.0)
CRS-6
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
INTL FUND FOR AGRICULTURAL
20.0 20.0 15.0 15.0 15.0 14.9 15.0 15.0
DEVELOP
NORTH AMERICAN DEVELOPMENT
BANK
—NADBank
capital,
paid-in
-.- -.- -.- -.- -.- -.- -.- -.-
—(NADBank
capital,
callable)
-.- -.- -.- -.- -.- -.- -.- -.-
TOTAL
MDB
APPROPRIATION
1,230.1 1,194.8 1,492.7 1,288.1 1,534.8 1,386.5 1,492.7 1,219.4
2006 2006 2007 2007 2008 2008 2009 2009
Request Approp. Request Approp. Request Approp Request Approp
WORLD BANK GROUP
Int’l
Bank
for
Reconstruction
&
Development
IBRD
capital,
paid
in
-.- -.- -.- -.- -.- -.- -.- -.-
(IBRD
capital,
callable)
-.- -.- -.- -.- -.- -.- -.- -.-
Int’l Development Association (IDA)
950.0
909.1
950.0
940.5
1,060.0
942.3
1,277.0
1,262.5
Int’l
Finance
Corporation
(IFC)
-.- -.- -.- -.- -.- -.- -.- -.-
Multilateral
Investment
Guarantee
Agency
MIGA paid in capital
1.7
1.3
-.-
-.-
1.1
-.-
-.-
-.-
Intl Clean Technology Fund
-.-
-.-
-.-
-.-
-.-
-.-
400.0
300.0
Strategic
Climate
Fund
100.0
75.0
(MIGA capital, callable)
(8.5)
(6.5)
-.-
-.-
(5.5)
-.-
-.-
-.-
Global Environmental Facility (GEF) 107.5
79.2
80.0 79.2 106.8 81.1 86.5 86.5
ASIAN DEVELOPMENT BANK
AsDB
ordinary
capital,
paid
in
-.- -.- -.- -.- -.- -.- -.- -.-
(ordinary
capital,
callable)
-.- -.- -.- -.- -.- -.- -.- -.-
Asian
Development
Fund
(AsDF)
115.3 99.0 115.3 99.0 133.9 74.5 115.3 105.0
CRS-7
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
AFRICAN DEVELOPMENT BANK
AfDB ordinary capital, paid in
5.6
3.6
5.0
3.6
2.0
2.0
-.-
-.-
(AfDB ordinary capital, cal able)
(88.3)
(88.3)
78.6
(88.3)
-.-
-.-
-.-
-.-
African
Development
Fund
(AfDF)
135.7 134.3 135.7 134.3 140.6 134.6 156.1 155.0
INTER-AMERICAN DEVELOPMENT BANK
IDB
ordinary
capital,
paid
in
-.- -.- -.- -.- -.- -.- -.- -.-
(IDB
ordinary
capital,
callable)
-.- -.- -.- -.- -.- -.- -.- -.-
Fund
for
Special
Operations
(FSO)
-.- -.- -.- -.- -.- -.- -.- -.-
Inter-American Investment Corp (IIC)
1.7
1.7
-.-
-.-
-.-
-.-
4.7
4.7
Multilateral
Invest.
Fund
(MIF)
1.7 1.7 25.0 1.7 29.2 24.8 25.0 25.0
EUROPEAN BANK FOR RECON &
DEVELOP
EBRD
capital,
paid
in
1 1 -.- -.- -.- -.- -.- -.-
(EBRD
capital,
callable)
(3.4)
(3.4) -.- -.- -.- -.- -.- -.-
INTL FUND FOR AGRICULTURAL
18.0 14.9 18.0 14.9 18.1 17.9 30.0 30.0
DEVELOP
NORTH AMERICAN DEVELOPMENT
BANK
—NADBank
capital,
paid-in
-.- -.- -.- -.- -.- -.- -.- -.-
—(NADBank
capital,
callable)
-.- -.- -.- -.- -.- -.- -.- -.-
TOTAL
MDB
APPROPRIATION
1,333.4 1,242.4 1,329.0 1,273.2 1,491.7 1,277.2 2,194.6 2,043.7
Source: Derived from the annual appropriation legislation and Treasury Department budget presentation documents. Figures in parentheses are callable capital, which is
not actual y appropriated. (See text.) Dashes show that no U.S. contribution or subscription was requested and/or approved by Congress that year.
a. The Administration also requested authority to use $52.5 million and $52.8 million, respectively in FY1998 and FY1999, in the bilateral Economic Support Fund for
contribution to the proposed Middle East and North African Development Bank (MENABANK). Congress did not give it this authority.
CRS-8
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Multilateral Development Banks: U.S. Contributions FY1998-FY2009
Author Contact Information
Jonathan E. Sanford
Specialist in International Trade and Finance
jsanford@crs.loc.gov, 7-7682
Congressional Research Service
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