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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 132 Introduced in House (IH)]

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;
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;
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;
Whereas despite ESAF's documented failure on economic and social grounds, the 
        IMF is proposing to make ESAF self-financed 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
    Resolved by the House of Representatives (the Senate concurring), 
That it is the sense of Congress that--
            (1) according to the IMF's own reviews, since 1980, the 
        external debt of ESAF countries nearly doubled and economic 
        growth was slower than for non-ESAF developing countries;
            (2) poor countries whose people are struggling daily to 
        meet their basic needs should no longer have to go through 
        years of harsh IMF-imposed policies;
            (3) it should be United States policy to oppose gold sales 
        to fund the IMF's ESAF program; and
            (4) any proceeds from the sale or other conversion of IMF 
        gold stocks should go directly to cancel debts owed to the IMF 
        and not to programs controlled by the IMF or the World Bank.
                                 <all>
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