The Senate debated and passed emergency funding for the wars in Iraq and Afghanistan last night. As mentioned in my previous blog, the bill also included additional funding for the International Monetary Fund that would extend their line of credit by $100 billion. The money is intended to help low- and middle-income countries currently struggling in the global recession.

A motion was introduced by Sen. Jim DeMint (R-SC) to strip the IMF funding, but that was defeated by a 2-1 margin.

The greater concern, however, was whether the IMF would be handed a blank check and allowed to continue doing business as they've done in the past. For the poor in developing countries, the IMF's way of doing business has been a disaster. It's structural adjustment programs in the '80s and '90s resulted in user fees for health and educational services, fees that people living on a dollar a day could ill afford. These days the IMF wreaks havoc by imposing budget caps and wage ceilings that limit the numbers of health workers and teachers a nation can hire, effectively depriving the poor once again of vital services.

Thanks to the efforts of Sen. Sherrod Brown (D-OH), the IMF's funding will likely come with some strings attached. Brown offered an amendment -- accepted by Senate leadership -- aimed at exempting health, education and food aid from IMF-imposed budget caps.

Here's the exact wording of the ammendment: "The Secretary of the Treasury shall instruct the United States Executive Director of the International Monetary Fund to use the voice and vote of the United States to oppose any loan, project, agreement, memorandum, instrument, plan, or other program of the Fund to a Heavily Indebted Poor Country that imposes budget caps or restraints that do not allow the maintenance of or an increase in government spending on health care or education; and to promote government spending on health care, education, food aid, or other critical safety net programs in all of the Fund’s activities with respect to Heavily Indebted Poor Countries." 

For the cynics out there who believe all members of Congress are corrupt, inept or both, I want to point out that there are people of courage and compassion on Capitol Hill. Sherrod Brown is one example.

The spending bill now moves to House-Senate conference to resolve differences. One of those differences is that the House bill contains no funding for the IMF. It's likely that Brown's amendment will survive conference, and Rep. Maxine Waters (D-CA) is leading efforts to further reform IMF policy to make it more transparent and participatory.

Members of Congress will go home next week for the Memorial Day recess. The debate about the IMF will resume when they return. Stay tuned.