Drug Eradication Act of 1986

Drug Eradication Act of 1986 - Requires the United States to promote the development by narcotics producing or exporting countries of programs for the reduction and eventual eradication of such drugs in such countries. Requires such programs to include: (1) a description of the manner in which such reductions will be made; (2) a timetable for making such reductions; and (3) a description of alternative economic activities which could be implemented with the assistance of the multilateral development banks to replace the economic benefits derived from the cultivation and production of controlled substances.

Requires the Secretary of the Treasury (the Secretary) to instruct the U.S. Executive Directors of the multilateral development banks to propose to the other directors of their respective banks that they: (1) provide all possible aid to each such country in developing a drug eradication program; and (2) increase lending to such a country with a crop substitution program which provides an economic alternative if such country has an adequate drug eradication program.

Requires the Administrator of the Drug Enforcement Administration to: (1) examine the drug eradication program in each such country to determine whether it is adequate to meet the purposes of this Act; and (2) certify to the Secretary that the program is adequate for such purposes. Requires the Administrator to then review such programs annually and, if adequate progress has been made in meeting the goals and timetables of such programs, to certify such programs.

Requires the Secretary, if within one year of enactment of this Act a country has not developed a certified drug eradication program, to instruct the U.S. Executive Directors of the multilateral development banks to vote against loans or other funds for such country until the Secretary instructs such Directors that such certification has been received. Requires the Secretary, if the Secretary has not received certification that adequate progress has been made in a country's drug eradication program in the previous year, to instruct the U.S. Executive Directors of the multilateral development banks to oppose loans or other funds for such country until the Secretary instructs such Directors that such certification has been received.

Requires the Secretary to include in the annual report to the Congress by the National Advisory Council on International Monetary and Financial Policies a report on the extent to which the requirements of this Act have been carried out.

Makes conforming amendments to the various Acts governing the multilateral development banks.

Defines multilateral development banks to mean the International Bank for Reconstruction and Development, the Inter-American Development Bank, the African Development Bank, and the Asian Development Bank.