Oppose Request to Expand International Monetary Fund Quota Increase
9/2/98
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Title: Oppose Request to Expand International Monetary Fund Quota
Increase
Source: Ned Daly, Resource Conservation Alliance
Status: Distribute and reprint freely
Date: 9/2/98
The International Monetary Fund (IMF) is currently seeking a massive
expansion of its powers. In September, the U.S. Congress will vote on
a request for $18 billion for the IMF, $14.5 billion of which would go
for a "quota increase," a direct expansion of the IMF's funding base
and therefore powers. Although the Senate has already approved the
administration's request for IMF funding, there is substantial opposition
in the House of Representatives -- and there is a good chance of
defeating the funding request in the House.
Most opposition to the IMF currently comes from the Republicans, who
oppose funding for a variety of reasons, including the institution's
secrecy and its propensity to bail out bankers. Many Democrats who
should oppose the IMF for environmental reasons alone are now
supporters of the Fund. If a few of them can be turned around, the
chances of defeating the funding request increase substantially.
That makes the following sign-on letter especially important. It
explains how the IMF pushes free trade and austerity policies that
promote deforestation, and notes that the IMF funding bill itself
demands the IMF become an enforcer of forest-destroying international
trade agreements.
The House will take the issue up sometime in September, which
means we need to garner organizational support for this letter
quickly -- by September 5. If you would like to sign the letter,
please send your organization's sign-on to Ned Daly, ASAP at
ndaly@essential.org
To: Members of the United States Congress
We oppose the Clinton administration's request to expand the IMF
through a $14.5 billion "quota increase."
IMF policies do enormous harm to the environment in general and
forests in particular. The IMF emphasis on free trade policies and
promotion of natural resource exports has devastated forests around the
world, as countries under IMF supervision increase exports of timber,
wood chips, palm oil and other products -- all at the expense of
preservation of primary forests. IMF-imposed austerity worsens poverty
in developing countries, leading poor farmers to use slash-and-burn and
other environmentally destructive practices to survive. IMF policies
force governments to reduce expenditures for environmental
enforcement, undermining their ability to enforce the environmental
laws they do maintain.
The IMF record of forest destruction is clear. In Indonesia, for
example, the IMF specifically encouraged the Indonesian government to
grow more palm oil for exports so it could pay back loans to rich
country banks. To clear land, palm oil plantation developers
intentionally set fire to the forest contributing to the massive forest
fires
that burned out of control in Indonesia, polluting air throughout the
region and destroying vast swaths of forest and habitat in Indonesia. In
Tanzania, IMF demands for increased exports led to a total forest loss
of 25% between 1980 and 1993.
The IMF funding expansion legislation now under consideration in the
House of Representatives would actually worsen the problem. It would
require the IMF to become an enforcer of free trade agreements,
conditioning loans to poor countries on their adherence to the terms of
trade and investment deals. The result would be an intensification of the
pressure on the world's forests.
A vote for IMF funding expansion is a vote against the world's forests,
and a vote against the environment. We urge you to oppose any
funding to expand the IMF.
Sincerely,
Jim Jontz
American Lands
Rob Wiessman
Multinational Monitor
Ned Daly
Resource Conservation Alliance
The Western Ancient Forest Campaign is now American Lands, reflecting our
work with citizens nationwide to protect America's wildlife and wild
places.
Steve Holmer
Campaign Coordinator
American Lands
1025 Vermont Ave. NW 3rd Floor
Washington, D.C. 20005
202/879-3188
202/879-3189 fax
wafcdc@igc.org