UNITED STATES PARTICIPATION IN THE MULTILATERAL DEVELOPMENT BANKS IN THE 1980S

This is intended to provide a comprehensive and dispassionate evaluation of the policies and operations of the multilateral development banks (MDBs) and, by applying the Administration's basic policy preferences and priorities to the findings, to establish a policy and budgetary framework for U.S. participation in these institutions in the 1980s. The study focuses on four institutions -- the World Bank Group, the Inter-American Development Bank (IDB), the Asian Development Bank (ADB), and the African Development Bank (AFDB).

The first part of the assessment discusses the role of the MDBs in the international economic system, criticisims which have been raised regarding the MDBs, the extent to which MDB operations contribute to U.S. interest, and the ability of the United States to exercise effective leadership within the institutions. Attention is then directed to the development rationale which underlies our approach to improving MDB effectiveness. The second part of the assessment provides policy recommendations for future U.S. participation in the MDBs, and illustrates the relationship between the budgetary implications of this policy direction and the lending operation of the institutions.