Military spending by recipient countries; military involvement in economies of recipient countries
Steps to achieve goals required
The Secretary of the Treasury shall instruct the United States Executive Directors of the international financial institutions (as so defined) to promote a policy at each institution under which—
the respective institution monitors closely and, through regular policy consultations with recipient governments, seeks to influence the composition of public expenditure in favor of funding growth and development priorities and away from unproductive expenditure, including excessive military expenditures;
the respective institution supports lending operations which assist efforts of recipient governments to promote good governance, including public participation, and reduce military expenditures; and
the allocation of resources and the extension of credit by the respective institution takes into account the performance of recipient governments in the areas of good governance, ending excessive military involvement in the economy and reducing excessive military expenditures.
[Pub. L. 95–118, title XV, § 1502], as added [Pub. L. 103–306, title V, § 526(d)], Aug. 23, 1994, [108 Stat. 1633].)