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106TH CONGRESS

1ST SESSION H. CON. RES. 132

Expressing the sense of the Congress in opposition to the use of proceeds

from gold sales by the International Monetary Fund for structural adjustment programs in developing countries.

IN THE HOUSE OF REPRESENTATIVES

JUNE 14, 1999

Mr. BROWN of Ohio submitted the following concurrent resolution; which was

referred to the Committee on Banking and Financial Services

CONCURRENT RESOLUTION

Expressing the sense of the Congress in opposition to the

use of proceeds from gold sales by the International

Monetary Fund for structural adjustment programs in

developing countries.

Whereas, for developing countries with macroeconomic problems such as rampant inflation, poor trade performance,

and high indebtedness, the International Monetary Fund

(IMF) offers Enhanced Structural Adjustment Facility

(ESAF) loans, which are low interest, medium term (5–

10 year) loans;

Whereas, according to the IMF, these concessional loans are

intended to offer a path to economic recovery and the reduction of debt service levels to sustainable levels through

the imposition of structural adjustment policies;
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•HCON 132 IH

Whereas the majority of external debt owed by nations of

sub-Saharan Africa was built up during the 1970’s—a

time of reckless lending by banks and international agencies—and was agreed to by undemocratic governments;

Whereas the IMF and the International Bank for Reconstruction and Development (World Bank) have imposed

structural adjustment programs on most sub-Saharan

countries since the 1980’s;

Whereas ESAF loan conditions have led to mandating massive layoffs, reduced availability of credit, increased taxes

and interest rates, and reduced government spending on

education and other basic needs;

Whereas economic growth has been slower for ESAF than

non-ESAF developing countries and per capita income

has declined for African countries under ESAF;

Whereas, despite abiding by ESAF requirements, sub-Saharan Africa, so rich in human and natural resources, remains the poorest region of the world economically;

Whereas per capita education spending for sub-Saharan African countries under ESAF has declined, including a decline of 35 percent in the Ivory Coast;

Whereas the external debt burden of sub-Saharan Africa has

increased by nearly 400 percent since 1980, when the

IMF and World Bank began imposing their structural

adjustment programs, and external debt has doubled for

nations under ESAF from 1985–1995;

Whereas the greatest barrier to economic recovery is the region’s overwhelming debt burden, which amounts to over

$230,000,000,000;
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•HCON 132 IH

Whereas it is the poorest inhabitants of sub-Saharan Africa

that are forced to shoulder the burden of external debt

by diverting scarce resources to debt servicing;

Whereas half the population of sub-Saharan Africa lives in

poverty;

Whereas average real wages decreased in 26 out of 28 African countries surveyed during the 1980’s;

Whereas sub-Saharan Africa spends twice as much on debt

interest payments as on health care;

Whereas cuts in health spending have led to an increase in

infant mortality, and sub-Saharan African children are

expected to account for about 40 percent of infant deaths

worldwide by the year 2000;

Whereas sub-Saharan Africa accounts for 10 percent of the

world’s population but accounts for nearly 2⁄3 of the

known cases of the HIV infection;

Whereas 1,000,000 inhabitants of sub-Saharan Africa will die

from malaria this year;

Whereas millions of small farmers, especially women, have

been devastated by IMF-induced cuts in credit and agricultural services, much of the land once devoted to food

crops is now devoted to cash crops, and nearly 40 percent

of the population suffers from some degree of malnutrition;

Whereas President Clinton and Vice President Gore have announced that the Administration is committed to greater

efforts for debt relief for the world’s most impoverished

countries;
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•HCON 132 IH

Whereas despite ESAF’s documented failure on economic and

social grounds, the IMF is proposing to make ESAF selffinanced through sales of its gold reserves; and

Whereas financing ESAF through gold sales will not only

allow the IMF to continue to implement harsh policies,

but it will create a permanently funded ESAF: Now,

therefore, be it

1 Resolved by the House of Representatives (the Senate

2 concurring), That it is the sense of Congress that—

3 (1) according to the IMF’s own reviews, since

4 1980, the external debt of ESAF countries nearly

5 doubled and economic growth was slower than for

6 non-ESAF developing countries;

7 (2) poor countries whose people are struggling

8 daily to meet their basic needs should no longer have

9 to go through years of harsh IMF-imposed policies;

10 (3) it should be United States policy to oppose

11 gold sales to fund the IMF’s ESAF program; and

12 (4) any proceeds from the sale or other conver13 sion of IMF gold stocks should go directly to cancel

14 debts owed to the IMF and not to programs con15 trolled by the IMF or the World Bank.

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