A Checklist of IMF Reforms

on the level of economic freedom in IMF recipient countries. Although the IMF continues to lend money to countries with little chance of growing economically, there is no accounting of the economic conditions in many of these countries. Congress should require that the U.S. representatives at the IMF provide it with a report detailing the economic conditions that exist in all countries that receive IMF funding. Specifically, this report should include information on the level of economic freedom that exists in the following areas: trade, taxation, government intervention in the economy, monetary policy, banking, foreign investment, regulation, wage and price controls, and property rights. One such bill (H.R. 3256) was introduced by Representative Gerald Solomon (R-NY).

Ban the transfer of funds to the IMF unless certain countries are prohibited from receiving IMF assistance or meet certain conditions. Several amendments have been offered by Members seeking to use the IMF funding as a lever to pressure IMF member countries to adopt changes demanded in U.S. legislation. For example, H.R. 3599, sponsored by Representative Jim Saxton (R-NJ), seeks to increase the effectiveness of U.S. sanctions on Iraq by prohibiting "provision of Federal funds to the [IMF] until Iraq is expelled." This would effectively cut off Iraq from an external source of funding that could undermine U.S. efforts to destroy Iraq's weapons of mass destruction . Require the IMF to publicly identify beneficiaries of IMF assistance. Though the IMF is restricted to lending only to its member governments, such assistance often benefits private individuals, institutions, and businesses. For example, recent IMF assistance to Indonesia, South Korea, and Thailand was used to bailout foreign investors and foreign and domestic banks. This reform would force the IMF to reveal these hidden beneficiaries of IMF assistance. This information could be required at the biannual testimony of the U.S. Executive Director to the IMF.

Require the U.S. to oppose any expansion of the Fund's power or mandate. During its Board of Governors meeting from April 13 to 17, 1998, the IMF announced its desire to amend its Articles of Agreement to grant the organization the power to force member countries alter existing policies on land ownership and investment.9 This amendment would drastically increase the Fund's power and influence in the global economy. An amendment by Ron Klink (D-PA) and Ileana Ros-Lehtinen (R-FL) would require the U.S. to oppose the change to the IMF's Articles of Agreement

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