A Response to an Article in the Guardian
May 30, 2000
By John Norregaard
Deputy Division Chief
Fiscal Affairs Department, IMF

Submitted to the Guardian but not Published

Sir:

We take strong issue with the allegations reported in your article "Forest Corruption Report Covered Up" (May 30). The IMF never has, and never will, encourage countries to deplete forestry or other natural resources at an unsustainable rate to pay off debts. This would be short-sighted folly! To the contrary, we urge countries to pursue policies that support sustainable economic and social development and poverty reduction.

Moreover, whenever we feel that there is a risk of unsustainable logging, we urge countries to take steps to ensure an adequate management of forestry. In Cambodia—just one of many examples—the IMF refused to approve a new loan program without certain preconditions in place: a continuation of the ban on log exports, the cessation of the granting of new concessions, a performance review of existing concessions, and measures to enhance transparency and good governance in the forestry sector.

Adding insult to injury, the headline of your article is very misleading as it seems to imply that the IMF is under some sort of "investigation," which is absolutely incorrect.