Dems critical of IMF

[Robert Weissman <rob@essential.org>]

MEDIA ADVISORY for		Contacts:   	Jon Coifman or Jennifer Kelly
THURSDAY, SEPT. 17, 1998	           		                 202/463-6670			    
 
IMF FUNDING: SURPRISE HOUSE FLOOR VOTE TODAY
 
40  HOUSE  DEMS CHALLENGE  IMF  FUNDING  INCREASE,  BLAST  LENDER  ROLE  IN
 ECONOMIC CHAOS
 
Group Cites Mismanagement & Severe Side Effects of Loans, 
Join Large Republican Bloc to Demand More IMF Accountability 
A diverse group of 40 House Democrats yesterday launched a major challenge
to President Clinton's proposed "emergency" funding increase for the
International Monetary Fund. The warning came in an urgent letter to the
House Rules Committee, which decided suddenly yesterday to bring the
measure to the floor today.
 
The move is aimed at heading off an amendment adding $14.5 BILLION to the
measure passed last week by the Appropriations Committee, which last week
slashed the President's high-priority $17.9 billion IMF funding request to
just $3.4 billion. The Democrats join a growing list or Republicans
demanding serious IMF reform.
 
The Democratic group says global economic turmoil is being used as a phony
pretext to bypass Congressional debate over IMF actions that have done more
to create economic crises than to solve them. The lender has been highly
uncooperative with
Congress, they say, because the secretive institution is immune from all
accountability.

"IMF bailouts shield banks, corporations and financiers from the cost of
risky investments -- forcing the public to pay instead -- and provide
little incentive for governments to reform economic policies," the
Democrats said.  "IMF policies undermine economic growth and domestic
productive capacity."

They are concerned about sharp drops in living standards and rising income
inequality after harsh austerity measures imposed by the IMF. And they say
IMF's rigid demand for commodity-driven export policies is wreaking
environmental havoc in developing countries around the world.
 
Dismissing White House urgency, they point out a recent study by the
General Accounting Office identifying nearly $200 BILLION in various
reserve funds available to the IMF -- more than enough to handle current
emergencies.

For a list of the 40 House Democrats, information on 
Efforts to Reform the IMF, or experts who can discuss 
IMF Mismanagement of Economic Crises, contact:

JON  COIFMAN,  ENVIRONMENTAL  MEDIA  SERVICES 202/463-6670