Our case study analyses show that Treasury  and the U.S. Executive Director have actively promoted U.S. policies  related to sound banking principles, labor issues, and audits of military  expenditures as required by the applicable legislative mandates, through  their discussions with Fund and member country officials and formal  statements to the Fund’s Executive Board. Furthermore, the Fund’s  willingness to adopt policy positions that are consistent with U.S.  legislatively mandated policies is affected by whether a majority of Fund  members perceive a given policy to be part of the Fund’s core mission to  promote monetary cooperation and currency exchange rate stability and to  provide resources to Fund members experiencing balance-of-payments  problems. Many of the mandates direct the Secretary of the Treasury to instruct the  U.S. Executive Director to use its “voice” and “vote” at the IMF to pursue  certain policies. However, the general support of  other IMF members for sound banking principles makes it hard to discern  the U.S.’ unique influence within the IMF.
Why GAO Did This Study

The core mission of the International Monetary Fund (IMF) is to promote monetary cooperation and exchange rate stability and provide resources to IMF member countries that experience balance-of-payment difficulties. Because it is an international organization, IMF is generally exempt from US law; however, Congress can seek to influence IMF policy by passing laws that direct the Secretary of the Treasury to direct the Executive Director to vote on certain issues within the Board of the Fund.

What GAO Found

Through three case studies, GAO found that the Treasury and the U.S. Executive Director actively promoted U.S. policies related to (1) sound banking principles, (2) labor issues, and (3) audits of military expenditures. It is difficult to determine whether IMF's adoption of a policy is due solely to U.S. influence because other countries generally support the same policies.