Enviro Release on House/IMF (fwd)

[Robert Weissman <rob@essential.org>]

>From Friends of the Earth

FOR IMMEDIATE RELEASE		Contacts:  Jon Coifman or Jennifer Kelly,
THURSDAY, SEPTEMBER 17, 1998			202 463-6670


ENVIRONMENTALISTS CALL DEFEAT OF IMF EXPANSION PLAN
A VICTORY FOR REFORMISTS, GLOBAL ECONOMY

WASHINGTON, DC - Environmentalists and progressives Thursday hailed the
U.S. House of Representatives' defeat of President Clinton's controversial
request for $18 billion in permanent extra funding for the International
Monetary Fund (IMF).  By a vote of 229 to 188, the House granted only $3.4
billion for new IMF credit lines, refusing to consider the additional $14.5
billion.

"Through their vote, Congress is saying IMF must earn this money by
overhauling the current misguided way it does business," said Brent
Blackwelder, President of Friends of the Earth.  "The IMF is unaccountable
to the outside world and to will not reform unless funding is on the line."

Friends of the Earth has joined groups from both ends of the political
spectrum to oppose any increase in IMF resources until reforms are secure.
They are calling for more information to be released to the public, more
accountability by the IMF Board of Directors, and an independent audit
office to evaluate how the IMF operates.  

"The environmental community is unified in saying no more money to the IMF
until it stops using US tax dollars to drain natural resources for short
term gain," said Carol Welch, International Policy Analyst at Friends of
the Earth. "The need for more openness and accountability at the IMF became
apparent to everyone this year as the IMF's secretive policies and programs
wrecked havoc throughout Asia and Russia."

The environmental community issued a statement Thursday supporting efforts
by Rep. George Miller (D-CA) to link new IMF funding to major improvements
in the lender's environmental safeguards. A growing number of Democrats are
joining Republicans in criticizing the IMF and opposing new IMF money
without reforms.  

"The disaster of 1998 proved that it is time to take a hard look at how the
IMF operates and what the real impacts of its programs are," said FOE's
Blackwelder.  "Let's hope the House of Representatives stays the course on
this courageous vote and holds the line against IMF expansion when the
House and Senate meet in conference."

Critics of the institution point out that according to the General
Accounting Office (GAO), the IMF has almost $200 billion in resources, and
insist that there is no good reason to expand funding.