	Introduction

Multilateral development banks (MDBs) are international institutions that provide financial assistance, typically in the form of loans and grants, to developing countries in order to promote economic and social development. The United States is a member and significant donor to five major MDBs. These include the World Bank and four smaller regional development banks: the African Development Bank (AfDB); the Asian Development Bank (AsDB); the European Bank for Reconstruction and Development (EBRD); and the Inter-American Development Bank (IDB). Congress plays a critical role in shaping U.S. policy at the MDBs through funding and oversight of U.S. participation in the institutions. The second section discusses the role of Congress in the MDBs, including congressional legislation authorizing and appropriating U.S. contributions to the MDBs and congressional oversight of U.S. participation in the MDBs. Non-concessional assistance is, depending on the MDB, extended to middle-income governments, some creditworthy low-income governments, and private-sector firms in developing countries. The other type of lending window is used to provide financial assistance at below market-based terms (concessional assistance), typically in the form of loans at below-market interest rates and grants, to governments of low-income countries. The World Bank initially focused on providing financing for large infrastructure projects. European Bank for Reconstruction and Development

The EBRD is the youngest MDB, founded in 1991. The United States is the largest donor to the non-concessional lending windows to the IBRD, the IFC, the EBRD, and the IDB. Replenishments of the MDB concessional windows happen regularly, while capital increases for the MDB non-concessional windows occur much more infrequently. Some legislative mandates require the U.S. Executive Directors to support, rather than oppose, financial assistance. Second, legislative mandates direct the U.S. representatives at the MDBs to advocate for policies within the MDBs. Under a number of Administrations, the MDBs have been viewed as critical to promoting U.S. foreign policy , economic interests, and national security interests abroad, although various Administrations have had different views on the appropriate level of U.S. funding for the MDBs and policy reforms to improve the effectiveness of the MDBs. U.S. Funding for the MDBs

U.S. funding for the MDBs may shift under President Trump, who campaigned on an "America First" platform and has signaled a reorientation of U.S. foreign policy. In March 2017, the Trump Administration proposed cutting $650 million over three years compared to the commitments made under the Obama Administration. Congress sets U.S. fundi ng for the MDBs as part of the State and Foreign O perations authorization and appropriations process. Critics of the MDBs argue that they are international bureaucracies focused on getting money "out the door" to developing countries, rather than on delivering results in developing countries; that the MDBs emphasize short-term outputs like reports and frameworks but do not engage in long-term activities like the evaluation of projects after they are completed; and that they put enormous administrative demands on developing-country governments. Some analysts have also raised questions about whether there is a clear division of labor among the MDBs. Bilateral aid gives donors more control over where the money goes and how the money is spent. The Changing Landscape of the MDBs

In recent years, several countries have taken steps to launch two new multilateral development banks. Second, China has led the creation of the Asian Infrastructure Investment Bank (AIIB). These two institutions are the first major MDBs to be created in decades, and there is debate about how they will fit in with existing international financial institutions.
Multilateral development banks (MDBs) provide financial assistance to developing countries in order to promote economic and social development. The United States is a member, and donor, to five major MDBs: the World Bank and four regional development banks, including the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank.
The MDBs primarily fund large infrastructure and other development projects and provide loans tied to policy reforms by the government. The MDBs provide non-concessional financial assistance to middle-income countries and some creditworthy low-income countries on market-based terms. They also provide concessional assistance, including grants and loans at below-market rate interest rates, to low-income countries.
The Role of Congress in U.S. Policy at the MDBs
Congress plays a critical role in U.S. participation in the MDBs through funding and oversight. Congressional legislation is required for the United States to make financial contributions to the banks. Appropriations for the concessional windows occur regularly, while appropriations for the non-concessional windows are less frequent.
Congress exercises oversight over U.S. participation in the MDBs, managed by the Treasury Department, through confirmations of U.S. representatives at the MDBs, hearings, and legislative mandates. For example, legislative mandates direct the U.S. Executive Directors to the MDBs to advocate certain policies and how to vote on various issues at the MDBs. Congress also has issued reporting requirements for the Treasury Department on issues related to MDB activities, and tied MDB funding to specific institutional reforms.
Selected Issues for Congress
U.S. Funding for the MDBs. U.S. funding for the MDBs may shift under President Trump. In March 2017, the Trump Administration proposed cutting $650 million over three years compared to the commitments made under the Obama Administration. However, in the spring of 2018, the Trump Administration pledged to support an expansion of the World Bank's non-concessional lending facility, the International Bank for Reconstruction and Development (IBRD). Congress sets U.S. funding for the MDBs as part of the annual state and foreign operations authorization and appropriations process.
Effectiveness of MDBs. Critics argue that the MDBs focus more on "getting money out the door" than delivering results, are not transparent, and lack a clear division of labor. They also argue that providing aid multilaterally relinquishes U.S. control over where and how the money is spent. Proponents argue that providing assistance to developing countries is the "right" thing to do and has been successful in helping developing countries make strides in health and education over the past four decades. They also argue that the MDBs leverage funds from other donors, promote policy reforms in developing countries, and enhance U.S. leadership.
Changing Landscape of the MDBs. Emerging markets have launched two new multilateral development banks: the Chinese-led Asian Infrastructure Investment Bank (AIIB) and the New Development Bank. The first major MDBs created in decades, questions have been raised how they will fit in with existing MDBs.