Improving Economic Impact Assessments

Congress requires Ex-Im Bank to assess, on a project-by-project basis, the economic impact of its work and not fund activities that will adversely affect U.S. industry. Ex-Im Bank uses a screening process to identify projects with the most potential to have an adverse economic impact, then subjects the identified projects to detailed analysis.

Highlights of GAO-07-1071 (PDF)

• Ex-Im Bank's screens include considering whether the requested financing is more than $10 million and will increase foreign production.
• GAO found that, while conducting economic impact analysis is inherently challenging, the effectiveness of Ex-Im Bank's screens varies, and certain methods used in the detailed analysis of projects could be improved.
• GAO also found that Ex-Im Bank's use of internal controls and the transparency of its assessment process could be improved.

^ Back to topWhat Needs to Be Done

To improve its economic impact analysis, GAO recommended that Ex-Im Bank

• create specific methodological guidelines for staff analyzing applications for economic impact;
• strengthen its internal controls to ensure that analyses are conducted in accordance with the bank's guidelines and sufficient documentation is maintained;
• review its current minimum threshold for requiring such assessments, and
• improve transparency by clarifying its procedures for conducting economic impact analyses.

  Highlights of GAO-07-1071 (PDF)

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