Civil Society Letter to U.S. Congress on IMF Gold Sales, Health, Education, and Debt Cancellation

Right now, civil society groups in the United States have the most significant opportunity in at least a decade -- and for the foreseeable future -- to advocate for meaningful policy change at the International Monetary Fund (IMF). Please consider signing on to the letter below; it is a first step in a broad effort to capitalize on this historic moment and to work for an end to harmful policies supported by the IMF that prevent countries from scaling up investments in health and education.

Please send organizational signatures to Sarah Rimmington of Essential Action, <srimmington@essentialinformation.org> by Wednesday March 19, 2008. This effort is being spearheaded by a coalition of civil society organizations based in the United States, including Health Global Access Project, Essential Action, Jubilee USA, ActionAid USA, Treatment Action Group, and Bank Information Center. Many other organizations and associations, including AFL-CIO, Oxfam America, and American Public Health Association, have also signed-on.

The IMF is proposing to sell some of the gold stock it holds to create a trust fund, proceeds of which would be used to pay for the IMF's administrative expenses. The IMF is taking this step because it is facing a budget crunch:middle-income countries have been paying off their debts to the IMF and deciding not to borrow anew. Selling this gold requires authorization by United States Congress, providing a unique point of leverage for civil society. Congress has the power to condition approval of gold sales on changes in the way the IMF
operates. The letter below calls on Congress to do exactly that, urging that gold sales be approved only if Congress first obtains policy changes so that the IMF:

1) Stops demanding countries adopt anti-growth, restrictive deficit
and inflation targets;

2) Exempts health and education spending from government budget
ceilings;

3) Stops diverting foreign aid away from its intended purposes and to
domestic debt payment or currency reserve build-up;

4) De-links debt cancellation from harmful economic conditionalities;
and,

5) Improves transparency and undertakes meaningful public
consultations before agreeing with countries on economic policies.

Because the IMF gold sale proposal would make the agency self-financing, this important opportunity to leverage Congressional influence over the Fund is not likely to be repeated any time soon.

At this stage, many Members of Congress are focused on getting assurances from the IMF that it will address other issues, such as transparency of so-called 'sovereign wealth funds' and the valuation of China's currency.

But we feel it that it is vital that people in the United States urge that Congress press for changes in the area where the IMF policy-making role is by far the most significant: the policy dictates it continues to impose on poor countries.

Links to background materials on these matters follow the sign-on letter below.

Please review the sign on letter and send endorsements from U.S. organizations to Sarah Rimmington of Essential Action,
<srimmington@essentialinformation.org> by Wednesday March 19, 2008.

Thank you!