Good morning and welcome to our distinguished witnesses.
I am pleased we are holding this oversight hearing on how the IMF is implementing the reforms mandated in last year's omnibus appropriations bill. I chaired a similar hearing at my Foreign Relations subcommittee back in January where Deputy Secretary Summers testified. That hearing proved to be very informative and I expect this hearing will too.
While the U.S. doesn't run the Fund, we are the single largest shareholder with 17% of the voting
power. Our position at the Fund gives us great leverage in seeing that certain changes take place.
Last year's reform and replenishment legislation recognized two important principles:
Many of us on the Committee worked on last year's legislation and take a particular interest in
ensuring the reforms take place. The legislation set out requirements that the Fund's major
shareholders support policies at the IMF which:
If we are to have an IMF, and I do believe we need an IMF, it must be effective and responsive,
concentrating its efforts on how and where it can make a positive difference. But we should not
expect nor ask it to do everything. Expecting the IMF to do too much will set it up for failure.
The IMF cannot be all things to all peoples. That was never its charter.
In the past, Congress has become engaged in IMF programs and reforms only during periodic
replenishments. One of most important elements of last year's IMF $18 billion replenishment
and reform legislation, was that it established a process for regular congressional oversight. This
will require us to do our own job better. The new congressional oversight process includes:
It is now Congress' responsibility to follow up and conduct vigorous oversight. This is our
purpose here today. I look forward to the testimony and commend the Chairman for calling this
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