International Affairs:

American Employment Generally Favorable at International Financial Institutions

ID-81-3: Published: Dec 10, 1980. Publicly Released: Dec 10, 1980.

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The United States contributes to the success of the World Bank, the Inter-American Development Bank, the Asian Development Bank, and the International Monetary Fund by providing professional staffs and financial support. It is considering joining the African Development Bank and, thus, may have similar commitments to that institution. The Department of the Treasury, in consultation with the International Development Cooperation Agency and the National Advisory Council on International Monetary and Financial Policies, is the primary agency responsible for U.S. participation in these international financial institutions.

Although the contribution of financial resources is controlled and scrutinized by the United States, human resources support receives relatively little attention. In the World Bank, the Inter-American Development Bank, and the International Monetary Fund, Americans work throughout the institutions with relatively high representation at management levels and represent the largest nationality in each institution. American employment at the Asian Development Bank is relatively low by comparison, and Americans are not spread throughout the bank. This situation is expected to worsen unless the United States takes ameliorating actions. The major impediment to hiring and retaining Americans at the institution is that the salaries of Americans after taxes is too low. Americans realize effective salaries several thousand dollars less than their counterparts. Equalizing U.S. employee incomes with those of their non-American counterparts appears to be the least costly and yet most effective option available. The long-term solution to this problem should consider American employment at all international organizations. Development plans for salary equalization might also be useful in the event the United States joins the African Development Bank.

Matters for Congressional Consideration

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Matter: Congress should support the concept of salary equalization as as interim measure to help alleviate the employment problem.

  2. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Matter: Congress should require the Department of the Treasury to advise Congress at the time of each annual request for appropriations on the progress made by the Interagency group on International Organization Staff Remuneration.

Recommendations for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of the Treasury should identify and advise ADB of available U.S. professional journals within which ADB position vacancy advertising would be appropriate.

    Agency Affected: Department of the Treasury

  2. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of the Treasury should identify and advise ADB of U.S. organizations, including educational institutions, where ADB should seek people with requisite skills.

    Agency Affected: Department of the Treasury

  3. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Treasury should act as a central point in the United States for Americans interested in ADB employment and, in that respect, serve as a repository for bank information.

    Agency Affected: Department of the Treasury

 

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