Empty-handed

The International Monetary Fund gathering now under way in Washington is all about rattling the donation tin. Managing Director Christine Lagarde is aiming for $400 billion in extra firepower to handle any European bailout - down from a hoped-for $600 billion. The refusal of US lawmakers to contribute has crimped the IMF's ambition.

Few attending the meeting are convinced by Lagarde's claim that the new, reduced target reflects a reduction in global risks. After all, yields on Spanish and Italian bonds are once again elevated, showing that euro zone worries haven't gone away. It's true that the IMF's whip-round will increase its lending war chest to around $800 billion, doubling its previous resources. But it's easy to see why the fund might need more if the European crisis reignites.

Still, the IMF boss makes a convincing sales pitch. Extra funds lent to the IMF will only be deployed in an emergency, and their very availability should help calm markets. Meanwhile, the IMF has always got its money back in the past. And since countries lend to the fund from central bank reserves, there's no additional government outlay involved.

The US Congress isn't so easily persuaded, though. Lawmakers can't agree on anything that looks remotely like extra spending at home, never mind in support of Europe's ailing socialist fringe. Republicans are even trying to rescind a $100 billion credit line extended to the IMF after the 2008 financial crisis.

America is helping in other ways, for instance by guaranteeing dollar liquidity to European banks. But the nation's reluctance to lead the way with funding for the IMF can only be eroding its influence with partners in multinational institutions like the fund and the World Bank.

The United States is the IMF's largest shareholder and has a veto over changes to the fund's constitution. Still, the heart of US power at such institutions has been its long-standing willingness to lead the way - and open its wallet - when concerted global action is needed. November's presidential election may be preventing that in the short term. But the relative ascendancy of China and other growing economies is chipping away at Uncle Sam's long-term clout, too.