Forty three nations have been receiving IMF aid for more than 20 years. The U.S. government has the most influence over IMF policies because it contributes the greatest amount of money to the institution. This money gives the U.S. government veto power over the IMFs most important decisions. In order to increase government income, the IMF encourages countries to develop export- industries. Exports allow countries to sell more products and provides them with the foreign currency needed to pay back their IMF loans.
Forests provide an easily accessible commodity for export.
Increased exports lead to increased logging. Between 1990 and 1995, forest loss for the 41 most heavily indebted and poor countries greatly exceeded the rate of forest loss worldwide. Approximately three fourths of these countries had an IMF loan during this period. The IMF requires governments to reduce spending. Environmental protections are one of the first expenditures to be cut.