The IFI Working Group Welcomes the Launch of the IFI Education Caucus

Published: November 16, 2023

The International Financial Institutions (IFI) Working Group welcomes the launch of the Congressional IFI Education Caucus, co-chaired by Reps. John Rutherford [FL-05-R] and Brittany Pettersen [CO-07-D]. The bipartisan Caucus will focus on educating Members of Congress and staff on the IFIs and the historic leadership role of the United States at the institutions. 

Congress is instrumental in governing U.S. participation at the IFIs through its key oversight role. The Senate Committee on Foreign Relations (SFRC) and the House Committee on Financial Services (HFSC) have jurisdiction over authorizing U.S. contributions to the IFIs and passing legislation that directs the Treasury Department’s actions at the institutions, including voice and vote mandates that require U.S. Executive Directors to take specific actions at the IFIs. U.S. contributions to IFIs pass through the House and Senate Appropriations Subcommittees on State, Foreign Operations, and Related Programs. Finally, these Committees of jurisdiction hold hearings, providing Members of Congress opportunities to voice their support or raise concerns on IFI programs and policies. 

The IFIs are the largest source of low-cost financing for many developing countries and play a key role in funding countries’ development agendas. By leveraging scarce resources, setting high standards, and advancing peace and security, the IFIs seek to promote economic and social development around the world. During the COVID-19 pandemic, the International Monetary Fund (IMF), the World Bank, and regional multilateral development banks (MDBs) mobilized unprecedented financial resources to support the pandemic response and foster a global economic recovery. In response to Russia’s war on Ukraine, the IFIs have leveraged billions of dollars to support Ukraine and developing nations suffering from the resulting worsened food crisis. 

Many IFIs are in a moment of transformation. In response to U.S. calls for IFI reforms at the 2022 World Bank/IMF Annual Meetings, the World Bank launched the Evolution Roadmap, a reform process focused on adapting the Bank’s mission, operating model, and financial model to better mobilize resources to deal with global challenges such as food insecurity, pandemic risks, and rising conflict and fragility. Other IFIs are also implementing recommendations from the G20 Capital Adequacy Framework to better leverage existing resources. As the IFIs review their policies and practices to better address global development challenges, having a strong U.S. commitment to effective and informed engagement at the IFIs will be more important than ever. 

“The IFIs combat global challenges by providing creative and cost-effective solutions that meet populations’ developmental and humanitarian needs. Between the global pandemic, the supply chain crisis, rising conflict, and food insecurity, the need for effective aid is greater than ever. Despite a tight fiscal environment, the U.S. must continue to be a leader at the IFIs in order to counter the malign influence of our adversaries and provide the investments in education, health, and infrastructure that developing countries absolutely need.” - Representative John Rutherford 

“The United States has played a critical role throughout the history of International Financial Institutions, helping to foster a more resilient global economy and improving the environmental and social impacts of IFI investments. Today, IFIs provide critical assistance to developing countries dealing with threats posed by climate change, food insecurity, and recovery from the global pandemic,” said Rep. Pettersen. “The United States has always been a leader at these institutions and the IFI Education Caucus is an important way for members of Congress to stay informed and involved to ensure a brighter future for our nation and our allies.”