WASHINGTON, D.C. – Senators Dave McCormick (R-PA) and Tim Kaine (D-VA) today introduced the Strengthening United States Leadership at the Inter-American Development Bank Act, which would bolster key economic partners in the Western Hemisphere, provide more alternatives to Chinese investment, and create opportunities for U.S. companies that will create jobs in the United States.
“We must reassert America’s leadership role in the Western Hemisphere and protect the homeland from the Chinese Communist Party’s efforts to expand its influence in our backyard,” Senator McCormick said. “This bill will strengthen U.S. national security, help American companies create jobs, and provide alternatives to Chinese investment for our allies and partners.”
“The United States must not cede our leadership on the international stage, especially to countries like China,” said Senator Kaine. “That’s why I’m introducing this bipartisan bill with Senator McCormick to strengthen our role at the Inter-American Development Bank to counter China’s influence.”
The United States is the largest shareholder at the Inter-American Development Bank (IDB), which was founded in 1959 to finance development in the Americas. In 2023, the IDB financed a total of $24.3 billion across its three components, supporting public infrastructure and private sector projects across the Western Hemisphere.
The People’s Republic of China (PRC) is a member of the IDB and has nearly 5% voting power in IDB Invest, the IDB’s private sector arm, compared to 15% for the United States. Recently, PRC companies have won several large procurement contracts for IDB projects, including a $4 billion contract to build the Bogotá metro system in Colombia.
Over the last 15 years, U.S. firms have only averaged around 1% of IDB’s public-sector procurement, compared to 3% for PRC companies. This is despite the fact that the PRC only owns 0.004% of shares in the public sector side of the IDB. U.S. companies are less likely to compete for IDB procurement opportunities, and the U.S. should encourage the IDB to continue leveling the playing field by prioritizing value for money, transparency, and integrity over lowest upfront cost.
This bill would instruct the U.S. Executive Director at the Inter-American Development Bank to use the voice, vote, and influence of the United States to reduce the influence of the PRC and PRC entities in IDB operations, activities, and projects and oppose any action at the IDB that could increase the voting share of the PRC relative to the United States.
The bill would also:
- Encourage the IDB to increase internal and external capacity building for IDB procurement from companies in the United States or U.S. partners, not the PRC;
- Support efforts at the IDB to implement procurement policies that prioritize value for money, transparency, and integrity over lowest upfront cost; and
- Strengthen collaboration between the IDB and the U.S. International Development Finance Corporation.
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