Congress Shoves Reform Down IMF's Throat
exists: semiconductors, steel, and automobiles. Thus, the U.S. semiconductor industry lobbied Congress hard for a provision that would permit future IMF loans from directly going to help South Korea semiconductor manufacturers.
4) Requires the Secretary of the Treasury to instruct the U.S. Executive Director to "vigorously promote" a number of policies such as:
1. Eliminating crony capitalism by requiring the IMF to cut relationships between governments and business wherever possible - especially directed government lending.
2. Reduce barriers to agricultural trade.
3. Require IMF loan recipients to enact bankruptcy laws that "treat foreigners fairly."
4. Promote trade liberalization policies by requiring the country to abide by the terms of all trade agreements to which it is a signatory.
5. Study the social and environmental impact of IMF assistance and policy prescriptions on the poor, the working class, on labor standards, and the environment and modify any negative policies.
5) Establish an International Financial Institution Advisory Commission: An 11-person commission: the U.S. Speaker of the House appoints 3 people, Senate Majority Leader appoints 3 people, and the Minority leaders of House and Senate together appoint 5 people. The commission is charged with examining the effect of globalization, trade, capital flows on financial institutions, the role of those institutions in the modern economy, and the relationship between them. The Commission is empowered to hold hearings, disseminate information, hold meetings, and reports their conclusions to the Secretary of the Treasury and appropriate legislative committees.
6) Seek an International Advisory Committee to the IMF: The U.S. Executive Director to the IMF is directed to use voice and vote to establish a Committee made up of elected officials from member countries.
7) Annual Reports By and Testimony From the Secretary of the Treasury on IMF Reform and the Organization's Financial Activities: These require the Secretary of the Treasury to regularly and publicly make an official statement on the progress of IMF reform and the major findings of the IMF's financial dealings.
While most of these reform fall way short of what many IMF reformers had hoped, and the enforcement mechanism remains questionable, many opponents of the IMF are pleased that these requirements are being seen as a good "first step" and not a "our work is done" kind of mentality. Indeed, as Congress' 105th session came to a close, and many lawmakers worked their way back to their districts to campaign, many staff members already began mapping out
Latest Articles