----- Original Message ----- From: John Hermann <[EMAIL PROTECTED]> To: John Hermann <[EMAIL PROTECTED]> Sent: Friday, 29 October 1999 7:54 PM Subject: IMF, World Bank Face Mounting Attacks > Economic Reform Australia > ERA EMAIL NETWORK > > Subject: FW: IMF, World Bank Face Mounting Attacks > Date: Thu, 28 Oct 1999 > > -----Original Message----- > From: HRAG - Chat [mailto:[EMAIL PROTECTED]] > Sent: Thursday, October 28, 1999 > > IMF, World Bank Face Mounting Attacks --- House Presents Bills to Alter > Debt Plan to Poor Nations Wall Street Journal; New York; Oct 26, 1999; By > Michael M. Phillips; > > > WASHINGTON -- Lawmakers on both ends of the political spectrum are > intensifying their attacks on the International Monetary Fund and World > Bank, whose loans to Russia, China and Chad have been mired in > controversy. > > In the past month alone, House members have introduced five bills designed > to force the IMF or World Bank to radically alter the way they aid > developing countries. The assault comes from both conservatives, who see > the IMF in particular as a waste of taxpayers' money, and from liberals, > who would like less emphasis on painful economic reforms and more on > environmental and social issues. > > "The institutions have promised changes, but changes have been slow to > come," says Andrea Durbin, director of international programs at Friends > of the Earth, an environmental group. "It has reached the point where > Congress is ready to put its foot down and say enough is enough." > > The conflict has even leaked into the 2000 presidential campaign, where > two Republican hopefuls, Steve Forbes and Gary Bauer, have said that, if > elected, they would shutter the IMF. > > The timing couldn't be much worse for the Clinton administration. It wants > $370 million from Congress to pay the U.S. share of an international > effort to reduce as much as $90 billion in debt that poor nations owe rich > countries, the IMF, the World Bank and other aid agencies. The > administration also seeks congressional permission to use IMF gold to > finance some debt relief. Already, Congress has slashed 22% from the $803 > million White House request for the World Bank's low-interest loan > program. President Clinton has since vetoed the funding bill as > inadequate. > > On Friday, Treasury Secretary Lawrence Summers urged Congress to meet the > president's request. "By supporting these programs," he said, "we help to > sustain American global economic leadership, and to promote changes > overseas that reflect core American values like free markets, strong > property rights and open borders." > > Foreign aid "is probably the least popular part of the budget > politically," says Matt McHugh, a former Democratic congressman who now > advises World Bank President James D. Wolfensohn. "It's always a tough > sell, especially when domestic programs are in danger for one reason or > another." He blames this year's troubles on partisan wrangling over > broader spending caps. > > But the World Bank and, even more so, the IMF have come under increasing > criticism since the bipartisan consensus over the value of U.S. foreign > aid broke down at the end of the Cold War. These days the assault is > particularly heavy. That is partly due to opposition to two World Bank > loans: One to resettle ethnic Chinese on traditionally Tibetan lands, and > another to build an oil pipeline connecting Chad and Cameroon. > > IMF criticism has centered recently on loans to Russia, although no > evidence has surfaced confirming claims that corrupt officials stole IMF > money. > > "The IMF is a force promoting the wrong economic advice around the world > as a condition for financial aid," says Mr. Bauer. "And I think that with > the fiasco in Russia -- where money has been clearly ripped off and ended > up in the pockets of thugs -- that the desire for reform is even greater." > > But while Mr. Bauer describes IMF policy advice as "socialist," critics on > the left accuse the lender of excessive orthodoxy for the austere monetary > and fiscal prescriptions it has urged upon countries from South Korea to > Brazil. > > "I don't count myself among the number ganging up on foreign aid," says > Rep. Cynthia McKinney (D., Ga.), whose bill would cut U.S. funding for the > IMF until it forgives debt from the poorest countries and abandons harsh > economic medicine. "I believe in the role of multilateral institutions, > but that role doesn't need to hamper the development of basic institutions > and values that I believe we as Americans ought to foster," including > human rights and equal economic opportunity. > > Despite the ferment on Capitol Hill, the administration still hopes to > secure substantial help for the IMF, World Bank and debt relief, while > trying to rebuild the collapsed foreign-aid consensus. "Our strategy is to > work for broader reforms in the IMF and World Bank that will help ensure > that these countries are able to allocate scarce resources to reducing > poverty and delivering health care and education," says Treasury > Undersecretary Timothy Geithner. > > One likely vehicle is a debt-relief bill sponsored by Reps. Jim Leach (R., > Iowa) and John LaFalce (D., N.Y.), which could come to a committee vote in > the next few weeks. TEXT BOX ACCOMPANYING ARTICLE: --- > > Under Attack > Key provisions and main sponsors of recent House bills affecting the > World Bank or IMF > -- Ecosystem and Indigenous Peoples' Protection Act > Rep. Christopher Cox (R., Calif.) > Requires U.S. to cut funds if World Bank violates environmental and > social policies > -- Debt Relief and IMF Reform Act of 1999 > Reps. Jim Saxton (R., N.J.) and Dennis Kucinich (D., Ohio) > Forces U.S. to oppose IMF's low-interest loans to poor countries > -- Debt Emancipation to Enable Democracies Act > Reps Cynthia McKinney (D., Ga.) and Dana Rohrabacher > (R., Calif.) > Forces IMF to forgive debts owed by poorest nations without tough > economic reforms > -- Foreign Money Laundering Deterrence and > Anticorruption Act > Rep. Jim Leach (R., Iowa) > Forces U.S. to oppose IMF and World Bank loans to corrupt countries > -- Russian Economic Restoration and Justice Act > Reps. Curt Weldon (R., Pa.) and Neil Abercrombie (D., > Hawaii) > Creates joint U.S.-Russian push for IMF reform > > Credit: Staff Reporter of The Wall Street Journal > > > > ---------------------------------------------------------------- This is the Neither public email list, open for the public and general discussion. To unsubscribe click here Mailto:[EMAIL PROTECTED]?Subject=unsubscribe To subscribe click here Mailto:[EMAIL PROTECTED]?Subject=subscribe For information on [EMAIL PROTECTED] http://www.neither.org/lists/public-list.htm For archives http://www.mail-archive.com/[email protected]
