Multilateral Investment Guarantee Agency Act

Title I: International Development Association - Amends the International Development Association Act to authorize the U.S. Governor of the International Development Association to agree to pay on behalf of the United States to the Association $2,875,000,000 to the eighth replenishment of the resources of the Association. Authorizes appropriations for such contribution and specifies such amount for FY 1988.

Title II: Asian Development Fund - Amends the Asian Development Bank Act to authorize the U.S. Governor of the Asian Development Bank to contribute on behalf of the United States $584,280,000 to the Asian Development Fund. Authorizes appropriations for such contribution and specifies such amount for FY 1988.

Title III: African Development Bank - Amends the African Development Bank Act to authorize the U.S. Governor of the African Development Bank to agree to subscribe on behalf of the U.S. to 59,632 shares of the capital stock of the Bank. Authorizes appropriations of $719,370,633 for such subscription. Specifies the amount that may be appropriated in FY 1988 for paid-in capital.

Title IV: Multilateral Investment Guarantee Agency - Multilateral Investment Guarantee Agency Act - Authorizes the President to accept membership for the United States in the Multilateral Investment Guarantee Agency (Agency) provided for by the Convention Establishing the Multilateral Investment Guarantee Agency deposited in the archives of the International Bank for Reconstruction and Development (Bank).

Provides that the Governor and Alternate Governor of the Bank shall serve as Governor and Alternate Governor, respectively, of the Agency.

Directs the U.S. Director of the Agency to propose to the Board of Directors that the Board adopt policies and procedures under which the Agency would refrain from issuing guarantees in respect of any proposed investment that would: (1) be in a country which has not taken or is not taking steps to afford internationally-recognized workers' rights to workers in that country; (2) be subject to trade-distorting performance requirements imposed by the host country that are likely to result in a significant net reduction in employment in the other member countries or a reduction in other trade benefits likely to accrue to other member countries from the investment; or (3) be likely to increase a country's productive capacity in an industry already facing excess worldwide capacity for the same or a similar or competing product, and cause substantial injury to producers of such product in another member country. Directs the Secretary to instruct the U.S. Director to: (1) oppose guarantees which may be issued in such circumstances; and (2) conduct an evaluation of U.S. investments guaranteed by the Agency to determine their impact on U.S. employment and exports and the extent to which such investments were made in countries which had not taken or are not taking steps to afford internationally-recognized workers' rights in host countries. Requires the Secretary to furnish such evaluation to the Congress.

Directs the Secretary to ensure periodic consultations with United States private sector representatives, through appropriate mechanisms, on policy directions and operations of the Agency, and to take account of those consultations in determining the policies of the United States toward the Agency.

Provides that certain provisions of the Bretton Woods Agreements Act shall apply to the Agency to the same extent as they apply to the Bank and the International Monetary Fund.

Prohibits the President or any person or agency, unless authorized by law, from: (1) subscribing to additional shares of stock in the Agency; (2) voting for or agreeing to any amendment of the Convention which increases the obligations of the United States, or which changes the purpose or functions of the Agency; or (3) making a loan or providing other financing to the Agency.

Requires any Federal Reserve bank that is requested to do so by the Agency to act as its depository or as its fiscal agent. Requires the Board of Governors of the Federal Reserve System to supervise and direct the carrying out of these functions by the Federal Reserve banks.

Authorizes the Secretary of the Treasury to subscribe on behalf of the United States to 20,519 shares of the capital stock of the Agency. Authorizes appropriations of $222,015,580 for such subscription. Provides that any payment of dividends of such stock shall be deposited into the Treasury as a miscellaneous receipt.

Sets forth the jurisdiction of U.S. courts regarding civil actions to which the Agency may be a party.

Sets forth procedures regarding arbitral awards rendered to resolve disputes arising under the Convention. Gives full force and effect within the United States, its territories, and possessions to defined privileges and immunities accorded under the Convention to the Agency.

Title V: Inter-American Development Bank - Amends the Inter-American Development Bank Act to authorize the U.S. Governor of the Inter-American Development Bank to agree to and to accept the amendments to the Articles of Agreement in the proposed resolution entitled "Merger of Interregional and Ordinary Capital Resources."

Title VI: International Bank for Reconstruction and Development - Amends the Bretton Woods Agreement Act to authorize the U.S. Governor of the Bank to agree to and to accept the amendment to the Articles of Agreement in the proposed resolution entitled "Amendment to the Articles of Agreement of the Bank."

Title VII: Policies for the Multilateral Development Banks - Amends the International Financial Institutions Act to direct the Secretaries of the Treasury and State, in cooperation with the Administrator of the Agency for International Development (AID), to vigorously promote mechanisms to strengthen the environmental performance of multilateral development banks. Declares that the mechanisms shall include, but are not limited to, strengthening organizational, administrative, and procedural arrangements within the banks.

Directs the Administrator, in the course of reviewing assistance proposals of the multilateral development banks, to ensure that other agencies and appropriate U.S. embassies and overseas missions of AID are instructed to analyze the environmental impacts of multilateral development loans in advance of such loans' approval to determine whether the proposals will contribute to the sustainable development of the borrowing country. Provides that if there is reason to believe that any such loan may have adverse impacts on the environment, then the Administrator shall ensure that the mission or embassy undertakes an affirmative investigation of such impacts in consultation with relevant Federal agencies. Requires any information collected to be made available to the public.

Directs the Secretary of the Treasury to instruct the Executive Directors representing the United States at the Bank, the Inter-American Development Bank, the Asian Development Bank, and the African Development Bank to urge the management and other directors of each such bank to provide sufficient time between the circulation of assistance proposals and bank action on those proposals, in order to permit their evaluation by major shareholder governments.

Requires the Administrator to identify those assistance proposals likely to have adverse impacts on the environment, natural resources, public health, or indigenous peoples and to transmit such information to specified congressional committees. Requires the Secretary to forward such information to the Executive Director representing the United States in the appropriate bank with instructions to eliminate or mitigate adverse impacts which may result from the proposal.

Directs the Secretary, in consultation with the Secretary of State and the Administrator, to create a system for cooperative exchange of information with other interested member countries on assistance proposals of the multilateral development banks.

Directs the Secretary to instruct the United States Executive Directors of the multilateral development banks to support the strengthening of educational programs within each such bank to improve the capacity of mid-level managers to initiate and manage environmental aspects of development activities, and to train officials of borrowing countries in the conduct of environmental analyses.

Directs the Secretary to instruct the U.S. Executive Directors of the multilateral development banks to: (1) urge each institution to identify and develop procedures to give appropriate consideration to environmental values in decisionmaking; and (2) include within each assistance proposal circulated to the Board of Directors a detailed environmental statement analyzing the environmental impact of the proposed action, the adverse environmental impacts should the proposal be implemented, and alternatives to the proposed action.

Directs the Secretary to instruct U.S. Executive Directors of each multilateral development bank to promote: (1) increases in the proportion of loans supporting environmentally beneficial policies, projects, and project components; (2) the establishment of environmental programs in policy-based lending to improve natural resource management, environmental quality, and protection of biological diversity; (3) increases in the proportion of staff with professional training and experience in ecology and related areas and in the areas of anthropological and sociological impact analysis; (4) encouragement of participation by borrowing countries nongovernmental environmental, community, and indigenous peoples' organizations at all stages of project preparation and implementation; and (5) full availability to concerned or affected nongovernmental and community organizations of full documentary information concerning details of design and potential environmental and sociocultural impacts of proposed loans.

Directs the Secretary to instruct the U.S. Executive Director of the International Monetary Fund to promote the requirement that the Fund conduct an in-depth analysis of the possible impact of its adjustment policies and conditionality of its lending facilities on the environment, public health, natural resources, and indigenous peoples.

Directs the Secretary to adopt voting instructions for environmentally sensitive sectors and ecosystems pursuant to which the U.S. Executive Directors of each multilateral development bank shall oppose all loans for projects or policies which have unjustifiable adverse effects on the environment, natural resources, public health, or indigenous peoples.

Requires the Secretary to submit an annual report on the progress being made to implement environmental objectives to specified congressional committees.

Directs the Secretary, after consultations with the Secretary of Agriculture and the Secretary of the Interior on markets and prices for commodities, to periodically instruct the U.S. Executive Directors to work with other executive directors to continue to: (1) support activities which result in broad increases in income and employment and enhance purchasing power in developing countries, particularly among the rural poor; and (2) encourage diversification away from single crop or product economies in developing countries to help reduce wide fluctuations in commodity prices and the adverse impact of abrupt changes in the terms of trade.

Requires the Secretary to discourage multilateral development banks from financing projects which will result in the production of surplus commodities, products, or minerals for export.

Directs the Secretary, in negotiations concerning replenishment or an increase in capital for any multilateral development bank, to propose the following institutional reforms: (1) the establishment of a unified program within each multilateral development bank to assess the extent to which bank lending benefits the least advantaged members of society, particularly women and the poor, and to increase the extent to which such members benefit from future bank lending; (2) the establishment of procedures within each multilateral development bank to provide in-country liaison services for nongovernmental organizations operating at the community level, to monitor the impact of project and non-project lending on local populations, and to ensure compliance with loan conditionalities; (3) a major increase in professional staff with training in environmental or social impact analysis or natural science; (4) with respect to the Bank, the establishment of a program for policy-based lending to promote the sustainable use of renewable resources and the protection of the environment in borrowing countries; and (5) an increase in the length of any review period for board review of staff recommendations sufficient to allow the governments of member countries to review and comment on such recommendations before the board takes action.

Directs the Secretary to instruct each U.S. Executive Director to require the management of each multilateral development bank to prepare an annual report which identifies and describes the most exemplary lending practices or loan components implemented during the preceding year with respect to specified lending policy goals for each major borrowing country or country group.

Directs the Secretary to instruct the U.S. Executive Director of the Bank and the International Development Association (IDA) to initiate discussions with other directors of the respective institutions and to propose that: (1) guidelines be established which reflect concern for the impact that adjustment lending programs, and the activities such programs support, have and will have on human welfare; and (2) impact statements be required which assess the effect an adjustment lending program, and the activities such program supports, will have on the poor of the country to which such lending is made. Requires such impact statements to specify the effects of each adjustment loan on the poor, explain the procedures which the borrowing country has taken or will take to measure those effects (including the monitoring of nutrition levels), and indicate the steps the borrowing country will take to mitigate adverse effects on the poor and to maximize the benefits to them. Directs the Secretary to instruct the U.S. Executive Director of the Bank and the IDA to request the management of the respective institutions to prepare a report on such topics.

Directs the Secretary to instruct the U.S. Executive Director of the Bank and the IDA to propose the establishment of a Grassroots Collaboration Program to develop improved mechanisms for involving nongovernmental organizations in the design, implementation, and monitoring of development projects to alleviate poverty and promote environmental protection.

Expresses the sense of the Congress that the Grassroots Collaboration Program should be implemented and financed as part of the normal operations of the Bank and the IDA. Expresses the sense of the Congress that such program could be financed through a grant from the net income of the Bank. Requires the Secretary to report to specified congressional committees on the status of the establishment of such program.

Requires each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies to describe the status of the establishment and operation of the program.

Directs the Secretary to instruct the U.S. Executive Director of the Bank and the IDA to initiate discussions with other directors and to propose that: (1) the Bank or IDA take such steps as necessary to increase access for the poor people of a borrowing country to formal sources of credit; and (2) the Bank or IDA include a requirement in all appropriate agreements that the borrowing country identify and remove unreasonable legal and regulatory barriers to the establishment or operation of organizations which extend credit, and to the provision of credit to microenterprises for small scale economic activities.

Directs the Secretary to instruct the U.S. Executive Directors of the African Development Bank and the Asian Development Bank to initiate discussions with other directors to propose that each such bank: (1) examine the Program for the Financing of Small Projects of the Inter-American Development Bank and the steps taken to link the Program to the mainstream operation of the bank; and (2) explore ways and means to establish similar programs to provide credit to microenterprises for small scale economic activities.

Requires each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies to describe the status of microenterprise credit promotion activities of the Bank, IDA, the African Development Bank, and the Asian Development Bank.

Declares the policy of the United States that multilateral development banks should fully involve women in development activities and projects.

Directs the Secretary to instruct: (1) the U.S. Executive Director of the Bank and IDA to support attempts to strengthen the role of the Women in Development division in policy development, project design and implementation, and evaluation; and (2) the U.S. Executive Directors of the regional multilateral development banks to support exploring the establishment of a mechanism, or the strengthening of an existing mechanism, to promote the full integration of women in the planning, design, implementation, and evaluation of lending activities in borrowing countries and within the banks.

Requires each annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies to describe the actions taken by the multilateral development banks to implement policies established by this Act.

Directs the Secretary to instruct the U.S. Executive Director of each multilateral development bank to propose that the bank: (1) take appropriate steps to measure the impacts of projects on indigenous peoples in borrowing countries; (2) ensure compliance with loan conditions protecting the rights of such people to lands and resources; and (3) consult with such peoples and nongovernmental organizations representing them at every phase of loan design, planning, implementation, and monitoring.