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The subcommittee is led by Chairman Gregory W. Meeks (NY).
International Policies
The United States contributes nearly $1.5 billion annually to international financial institutions to fund international development programs. These funds are combined with the contributions of other donor countries to provide tens of billions of dollars in assistance in the form of grants, loans, and loan guarantees, to support economic development, education, healthcare, and other anti-poverty programs. The Financial Services Committee is responsible for oversight of U.S. policy in these international institutions, which include the World Bank, the Inter-American Development Bank, the Asian and African Development Banks, the International Monetary Fund (IMF), and the European Bank for Reconstruction and Development.
Committee Democrats have emphasized the importance of monetary and fiscal policies that promote low unemployment and solid wage growth along with manageable inflation. The Committee’s Democrats have also pointed to the need for a balanced and responsible fiscal policy that foregoes budget-busting tax cuts for a wealthy few, in favor of pro-growth investments in people and economic sectors.
Overseeing International Institutions
The Democratic Caucus of the Committee has actively promoted important reforms in international institutions. Democratic-led efforts include the landmark Enhanced Heavily-Indebted Poor Country Initiative, which provides billions of dollars in debt forgiveness to the world’s poorest countries. The Democratic Caucus has also actively sought important reforms at the two largest international financial institutions, the IMF and the World Bank, aimed at providing greater transparency within the institutions, more interaction with civil society, and a greater degree of focus in the missions of the two institutions. Committee Democrats will continue to seek policies and programs within the international financial institutions that are aimed at reducing poverty, promoting the health and well-being of poor people, and contributing to economic growth and stability globally.
Recently Committee Democrats passed H.R. 4573, the Debt Relief for Earthquake Recovery in Haiti Act introduced by Rep. Maxine Waters (D-CA) to Cancel Haiti’s Debt. The Bill requires the Secretary of the Treasury to instruct the U.S. Executive Directors at the International Monetary Fund (IMF), the World Bank, the Inter-American Development Bank (IDB), and other multilateral development institutions to use the voice, vote, and influence of the United States to cancel immediately and completely all debts owed by Haiti to these institutions; suspend Haiti’s debt service payments to the institutions until such time as the debts are canceled completely; and provide additional assistance to Haiti in the form of grants so that Haiti does not accumulate additional debts.
