No New Burma Funds Act
Summary
The "No New Burma Funds Act" aims to continue the pause on disbursements and new financing commitments to the Government of Burma by the World Bank. This pause was initially implemented following the 2021 military coup that overthrew the democratically elected government. The Act requires the Secretary of the Treasury to direct the US Executive Director at the International Bank for Reconstruction and Development to vote in favor of maintaining this pause.
Expected Effects
The Act will likely result in continued economic pressure on the Burmese government. It restricts access to international financial assistance from the World Bank. This could hinder development projects and potentially impact the Burmese economy.
Potential Benefits
- Reinforces the U.S. commitment to democracy and human rights in Burma.
- Potentially weakens the military regime's ability to consolidate power.
- May encourage a return to democratic governance.
- Sends a strong signal to other nations about the unacceptability of military coups.
- Could improve the long-term stability of the region.
Potential Disadvantages
- May negatively impact the Burmese population by limiting access to development funds.
- Could hinder efforts to address poverty and improve living standards.
- May not be effective in changing the behavior of the Burmese government.
- Could strain relations with other countries that have different approaches to Burma.
- Potential for unintended consequences on humanitarian efforts.
Constitutional Alignment
The Act aligns with the broad principles of promoting democracy and human rights, which can be seen as supporting the general welfare and securing the blessings of liberty as stated in the Preamble of the US Constitution. Congress has the power to regulate commerce with foreign nations, as per Article I, Section 8, Clause 3, which gives them the authority to influence international financial institutions through the Secretary of Treasury.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).