US Interests and the International Monetary Fund
The US Congress is now considering legislation to approve President Obama's pledge, made at the G-20 London summit in April, to increase the US commitment to the International Monetary Fund (IMF). This pledge is part of a collective effort by the G-20 leaders to triple the resources available to the IMF so that it can better respond to the ongoing global economic crisis. To this end, President Obama has submitted a four-part package to Congress for approval. The package would increase the US quota contribution to the IMF by about $8 billion, raise an emergency line of credit for the Fund by nearly $100 billion, endorse the IMF's plan to endow an investment fund through sales of some of its gold reserves in order to provide for its operational expenses, and approve a special allocation of the IMF's synthetic reserve asset, Special Drawing Rights (SDRs). C. Randall Henning analyzes the politics and policy merits of the IMF legislation before Congress through a discussion of the IMF's role in the international monetary system, its relationship to US interests, and the congressional record of past IMF legislation. He argues that the present financial troubles have only increased the need for strong US support of the Fund. The IMF reflects the economic policy interests of the United States more faithfully than perhaps any other international institution and congressional action should reflect this basic convergence of interest. Failure to support the IMF now would not only hamper global and US recovery from the current crisis, but it would also undermine US influence, both within the IMF and in international relations generally.
|Date of creation:||Jun 2009|
|Contact details of provider:|| Postal: 1750 Massachusetts Avenue, NW, Washington, DC 20036-1903|
Web page: http://www.piie.com
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edwin M. Truman, 2006.
"Strategy for IMF Reform, A,"
Peterson Institute Press: Policy Analyses in International Economics,
Peterson Institute for International Economics, number pa77, February.
- Mohsin S. Khan & Sunil Sharma, 2001. "IMF Conditionality and Country Ownership of Programs," IMF Working Papers 01/142, International Monetary Fund.
- Edwin M. Truman, 2006. "Reforming the IMF for the 21st Century," Peterson Institute Press: All Books, Peterson Institute for International Economics, number sr19, January.
When requesting a correction, please mention this item's handle: RePEc:iie:pbrief:pb09-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peterson Institute webmaster)
If references are entirely missing, you can add them using this form.