A Checklist of IMF Reforms

loan recipients are held to the same standards for its loans as are private individuals, private companies, and countries not eligible for IMF subsidies, reinforce market perceptions of risk, and eliminate the backdoor transfer of wealth from Americans to the governments of countries that made unwise economic decisions.6 Legislation requiring the IMF to eliminate subsidized interest rates on its loans is included in the IMF Transparency and Efficiency Act of 1998 (H.R. 3331), sponsored by Representatives Jim Saxton (R-NJ), Richard K. Armey (R-TX), and Tom Campbell (R-CA) in the House and Senator Ben Campbell (R-CO) in the Senate.

Require that private investors and institutions - not taxpayers - bear primary cost of financial crises. IMF bailouts enable investors and financial institutions to escape financial crises with little hardship, while the citizens in crisis-ridden countries bear the expense of the bailout.7 An amendment by Representatives Bernard Sanders (I-VT) and Spencer Bachus (R-AL) would withhold authorization of U.S. contributions to the IMF until the U.S. Secretary of the Treasury certifies that the IMF has amended its bylaws to require that investors and banks make a significant prior contribution, such as debt relief, rolling over existing debt, and providing new credit, before U.S. taxpayer dollars are used to bailout countries through multilateral organizations such as the IMF or domestic funds like the ESF.

Establish an independent advisory board to review IMF policies and recommendations. One of the more common reform proposals is to establish an independent review board to examine and evaluate IMF policies and loan conditions. One example of this is contained in H.R. 3331 which directs the IMF to establish a 24-member independent advisory board, appointed by the legislatures of the members of the IMF Executive Board, to "review the research, operations, and loan programs of the [IMF]." The advisory board would release public reports annually on its activities and conclusions.

Convene a second Bretton Woods conference. Since the IMF, the World Bank, and the General Agreement on Tariffs and Trade were founded in 1944 by 44 countries at Bretton Woods, New Hampshire, the international financial system has changed dramatically. These changes, including the abandonment of the gold standard, raise questions about whether the IMF is correctly structured or even necessary in the modern global economy. This amendment would require the Administration to request a second meeting to determine if the organizations established at Bretton Woods remain relevant 50

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