[stop-imf] Urgent Action to stop Bank/IMF user fees for healthcare and education

[Robert Weissman]

June 11, 2001

URGENT ACTION: TELL CONGRESS TO MAKE TREASURY DEPT. COMPLY WITH U.S. LAW
TO OPPOSE USER FEES ON HEALTH AND EDUCATION AT WORLD BANK

Calls needed by June 12 to Members of the U.S. House of Representatives'
Banking Committee's international subcommittee [the Financial Service's
Committee's International Monetary Policy and Trade subcommittee]. Ask the
Members to ask the Treasury Department at Tuesday's hearing why the
Treasury Dept. has failed to adhere to legislation requiring the U.S. to
oppose any IMF or World Bank loan requiring user fees for primary
healthcare or education. The Congressional switchboard is 202-225-3121.
Details, including a list of Members on the relevant subcommittee, follow
below.

***

Background

In October 2000, Congress took a historic step. It passed legislation
requiring the U.S. to oppose the inclusion of "user fees" [service
charges] as part of the conditions attached to loans and debt relief
actions by the International Monetary Fund and the World Bank. The World
Bank's policy of promoting these "user fees" has led to declining school
enrollments and decreased access to health care in many poor countries in
Africa and elsewhere. This was the first time that Congress acted to
explicitly prohibit U.S. support for a "structural adjustment" policy at
the IMF and the World Bank.

Unfortunately, it has recently come to light that the U.S. Treasury
Department has failed to comply with the law. In December, 2000, the World
Bank approved the "Poverty Reduction Strategy Paper" [PRSP] for Tanzania,
which included user fees on health care. Recently leaked minutes of the
Board meeting that approved the Tanzania PRSP prove that Treasury failed
to oppose user fees on health, or even address the issue, even though it
was explicitly discussed in the meeting. Moreover, Treasury failed to
report to Congress within 10 days of the approval of the PRSP, as the law
required.

On Tuesday afternoon, June 12, Treasury official Bill Schuerch will
testify before the House subcommittee that oversees U.S. policy at the IMF
and the World Bank [the Financial Service's Committee's International
Monetary Policy and Trade subcommittee.]

Please contact Members of the subcommittee and ask them to demand that
Treasury comply with the law and oppose user fees on health care and
education at the IMF and the World Bank.

The Congressional switchboard is 202-225-3121. Call and ask to be
connected with the office of the Member of Congress; when you reach their
office, ask for the staff person who handles IMF and World Bank issues.
Tell them (leave them a voice mail if necessary) to ask the Representative
to question Bill Schuerch on why Treasury has not complied with the
Congressional mandate to oppose user fees on health care and education,
and why Treasury failed to oppose the PRSP for Tanzania even though it
included user fees on health care. [For background, see the report on
Treasury's violation of the user fees prohibition by the Center for
Economic and Policy Research, www.cepr.net]


Members of the subcommittee

Bernard Sanders
Maxine Waters
Barney Frank
Melvin L. Watt
Julia Carson
Paul E. Kanjorski
Brad Sherman
Janice D. Schakowsky
Carolyn B. Maloney
Luis V. Gutierrez
Ken Bentsen
Barbara Lee
John J. LaFalce

Doug Bereuter
Doug Ose
Marge Roukema
Richard H. Baker
Michael N. Castle
Jim Ryun
Donald A. Manzullo
Judy Biggert
Mark Green
Patrick J. Toomey
Christopher Shays
Gary G. Miller
Shelley Moore Capito
Mike Ferguson