U.S. politicians attack IMF for its aid to Asia<\/p>\n
WASHINGTON (Reuters): The International Monetary Fund came
\nunder fire on Monday for its Asian bailouts as former Republican
\npresidential candidate Steve Forbes said it and the Clinton
\nadministration were making the financial crisis worse.<\/p>\n
"Along with the Clinton-Gore Treasury Department, this agency
\nhas been prolonging and deepening the currency crisis that is
\nrolling more and more of the world," said Forbes, who is widely
\nbelieved to be planning a presidential bid in 2000.<\/p>\n
With that criticism, the millionaire publisher joined a
\ngrowing list of prominent conservatives and liberals who oppose
\nthe IMF's multibillion-dollar bailouts in Asia.<\/p>\n
In a letter to members of Congress, Forbes called on lawmakers
\nto block billions of dollars in payments that would boost IMF
\nresources, drained by huge loans to South Korea, Indonesia and
\nThailand.<\/p>\n
At a community forum in Los Angeles, Federal Reserve Chairman
\nAlan Greenspan was heckled by community activists for defending
\nfinancial aid to Asia when poor neighborhoods in the United
\nStates needed help.<\/p>\n
"It's a disgrace" and "You should be ashamed of yourself,"
\nsome participants shouted at Greenspan.<\/p>\n
In Washington, Sen. Alfonse D'Amato, a New York Republican who
\nheads the Senate Banking Committee, said Congress must insist on
\n"discipline and thoughtful action" before taxpayer dollars were
\nput at risk in Asia.<\/p>\n
He said his panel would investigate the bailouts immediately
\nafter Congress reconvened on Jan. 26.<\/p>\n
The stepped-up attacks on the IMF come as Deputy U.S. Treasury
\nSecretary Lawrence Summers met with Asian leaders during a week-
\nlong tour of the battered region. On Monday, Summers was in
\nIndonesia, currently the focus of market anxiety after the rupiah
\nnose-dived last week and stocks faced heavy selling.<\/p>\n
The IMF has put together huge bailouts for South Korea,
\nThailand and Indonesia since the July 2 crash of the Thai baht,
\nwhich sent shock waves across Southeast Asia. The United States
\nand other rich countries have agreed to contribute billions of
\ndollars to support IMF-led rescues.<\/p>\n
When it reconvenes, Congress will be asked to make an extra
\n$3.5 billion available to the IMF for an emergency lending
\nfacility and around $15 billion to cover the U.S. share of a
\nquota increase to replenish IMF funds.<\/p>\n
The Clinton administration said that the money was needed to
\nkeep the IMF strong and that U.S. economic and national security
\ninterests were at stake in Asia.<\/p>\n
Opponents argue that American taxpayers should not be forced
\nto prop up countries responsible for their own financial problems
\nand that IMF policies are too harsh and will not work.<\/p>\n
Forbes said members of Congress should "say no" to the
\n"economically destructive" IMF. "Its austerity policies of
\ndevaluation and higher taxes are making the Asian economic crisis
\nworse," he said.<\/p>\n
Like Forbes, Jack Kemp, the unsuccessful Republican vice-
\npresidential candidate in 1996, has urged Congress to withhold
\nthe IMF funds.<\/p>\n
"I don't think that Congress should bail out Asia until we do
\na couple of things," Kemp said on NBC television on Sunday. "No.
\n1, require that the IMF change its policies."<\/p>\n
Kemp and is also considering a presidential bid in 2000.
\nD'Amato said he expected Treasury Secretary Robert Rubin and
\nother senior officials to justify the bailouts to Congress.<\/p>\n
"When Congress resumes we will ask the secretary of the
\nTreasury and the appropriate officials to explain to us and to
\nthe American people what various courses of action they will be
\nrecommending," he said in a statement.<\/p>",
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