Cancellation Of The External Debt And Recognition Of The Ecological Debt

6 June 2009 by Sajida Hussein


The debt owed by poor countries to the IMF IMF
International Monetary Fund
Along with the World Bank, the IMF was founded on the day the Bretton Woods Agreements were signed. Its first mission was to support the new system of standard exchange rates.

When the Bretton Wood fixed rates system came to an end in 1971, the main function of the IMF became that of being both policeman and fireman for global capital: it acts as policeman when it enforces its Structural Adjustment Policies and as fireman when it steps in to help out governments in risk of defaulting on debt repayments.

As for the World Bank, a weighted voting system operates: depending on the amount paid as contribution by each member state. 85% of the votes is required to modify the IMF Charter (which means that the USA with 17,68% % of the votes has a de facto veto on any change).

The institution is dominated by five countries: the United States (16,74%), Japan (6,23%), Germany (5,81%), France (4,29%) and the UK (4,29%).
The other 183 member countries are divided into groups led by one country. The most important one (6,57% of the votes) is led by Belgium. The least important group of countries (1,55% of the votes) is led by Gabon and brings together African countries.

http://imf.org
and World Bank World Bank
WB
The World Bank was founded as part of the new international monetary system set up at Bretton Woods in 1944. Its capital is provided by member states’ contributions and loans on the international money markets. It financed public and private projects in Third World and East European countries.

It consists of several closely associated institutions, among which :

1. The International Bank for Reconstruction and Development (IBRD, 189 members in 2017), which provides loans in productive sectors such as farming or energy ;

2. The International Development Association (IDA, 159 members in 1997), which provides less advanced countries with long-term loans (35-40 years) at very low interest (1%) ;

3. The International Finance Corporation (IFC), which provides both loan and equity finance for business ventures in developing countries.

As Third World Debt gets worse, the World Bank (along with the IMF) tends to adopt a macro-economic perspective. For instance, it enforces adjustment policies that are intended to balance heavily indebted countries’ payments. The World Bank advises those countries that have to undergo the IMF’s therapy on such matters as how to reduce budget deficits, round up savings, enduce foreign investors to settle within their borders, or free prices and exchange rates.

is crippling, and very often comes at the expense of essential investments in people such as education, health care Care Le concept de « care work » (travail de soin) fait référence à un ensemble de pratiques matérielles et psychologiques destinées à apporter une réponse concrète aux besoins des autres et d’une communauté (dont des écosystèmes). On préfère le concept de care à celui de travail « domestique » ou de « reproduction » car il intègre les dimensions émotionnelles et psychologiques (charge mentale, affection, soutien), et il ne se limite pas aux aspects « privés » et gratuit en englobant également les activités rémunérées nécessaires à la reproduction de la vie humaine. and environmental services. Some African countries, for example, spend an average of $US14 per person each year on servicing their debts, compared to only US$5 per person on health care.

Viewed from an angle, the average debt of every Indian has been estimated to soar to about Rs 30,000 in about a year with the government Competitive economies stepping up it borrowing programme in the next fiscal to fund public expenditure and stimulate the economy.

With the government adding about Rs 3,00,000 crores (Rs 3000 billion) to the public debt annually in the last few years, the total public debt is estimated to zoom to a whooping Rs 34,06,322 crores (Rs 34.06 trillion) by March 2010, nearly double the amount recorded seven years ago.

In order to fight the impact of the global financial meltdown on the Indian economy, the government substantially increased its market borrowing programme in 2008-09.

According to budget papers, as against the target of Rs 1, 00,000 crores (Rs 1 trillion), the government would end up raising Rs 2, 62,000 crores (Rs 2,620 billion) during 2008-09, more than two and a half times the original estimate.

We strongly feels that India should not go the Argentina way by borrowing heavily from the World Bank and by getting caught in a vicious circle of debt, more debt and debt servicing.

No country needs to go in for external funding. There will be enough for everyone within the country if there is distribution of wealth and judicious use of resources.

We appeal to all to say `no’ to external debt. It is immoral and fraudulent. People should resolve not to pay such debt. After all, it is not the people who sought such debt but the Government and politics. Why should they suffer for the decision taken without their consent?

We endorse our protest, and our movement asserts for the unconditional cancellation of all outstanding foreign debt owed by poor countries to rich ones, and to international financial institutions like the World Bank and IMF. Many of these debts were accumulated by dictatorial and criminal regimes and should therefore be considered illegitimate.

Debt and those who participated in creating it need to be investigated and judged: the global cry for debt termination is also a call for righteousness. We demand 100 percent debt cancellation, and the removal of all economic conditions. This is essential in order to ensure that people in the South can regain control over economic decisions that affect their lives.

We would like to achieve through our campaign the recognition of the ecological debt owed by northern countries to countries in the South for decades of resource exploitation.

We would like to ascertain the RESPONSIBILITY and the OBLIGATION of the industrialized countries of the North to repair and to stop the damages caused to the biosphere and to the countries (as they say) Third World by the Ecological Debt, as it is putting the entire planet at risk.

We would like to MAKE EVIDENT the ILLEGITIMACY of the foreign debt as a means of looting that increases the ecological debt.

We would like to PROTECT our cultural and natural heritage and to strengthen their diversity, for both present and future generations.

We would like to STOP the external flow of primary materials, food and financial flows, as part of the ecologically unequal exchange, for a nationally focused and autonomous economy that prioritizes the national population’s needs in harmony with the environment.

We would like to MAKE obvious the inequalities of the present economic model, and to promote resistance to the imposition of a monoculture Monoculture When one crop alone is cultivated. Many countries of the South have been induced to specialize in the production of a commodity for export (cotton, coffee, cocoa, groundnuts, tobacco, etc.) to procure hard currency for debt repayments. based on money and the market which works against cultural diversity, the well-being of communities and environmental sustainability.

We would like to PROTECT AND PROMOTE ecologically sustainable communities and the recognition and the importance of indigenous communities in the preservation of the agricultural and wild diversity.

We would like to seek international RECOGNITION for the Ecological, Historical and Current Debt that the countries of the North owe to the countries of the Third World.

We would like to seek international RECOGNITION of the ILLEGITIMACY OF THE FOREIGN DEBT as made evident by the ecological debt.

We demand the REPATRIATION of Cultural (plundered historical memory) and Natural Heritage (genetic and biological material.

We would like to reinstate the areas affected in the countries of the South, by the extraction of natural resources and export monocultures, so that local and national communities recover their self sustaining capacity.

We would like to shrink Carbon emissions and totally eliminate the products that generate the erosion of the ozone layer, curtail of all the weapons, products and toxic substances that threaten the life of the planet.

We would like to call on the people and the governments of the third world, to be vigorous in defense of life.

We would like to call on the people to DISOBEY all policies of the multilateral organizations, (the World Bank, the International Monetary Fund, the World Trade Organization), and of Governments, that threaten the ecological balance Balance End of year statement of a company’s assets (what the company possesses) and liabilities (what it owes). In other words, the assets provide information about how the funds collected by the company have been used; and the liabilities, about the origins of those funds. and human survival.

We disagree and say no to the programs and credits that promote the extraction of natural resources, monocultures and Megaprovectos, and to a cost of social and environmental destruction.

We disagree and say NO to the payment of the foreign debt.

We disagree and say NO to structural adjustment Structural Adjustment Economic policies imposed by the IMF in exchange of new loans or the rescheduling of old loans.

Structural Adjustments policies were enforced in the early 1980 to qualify countries for new loans or for debt rescheduling by the IMF and the World Bank. The requested kind of adjustment aims at ensuring that the country can again service its external debt. Structural adjustment usually combines the following elements : devaluation of the national currency (in order to bring down the prices of exported goods and attract strong currencies), rise in interest rates (in order to attract international capital), reduction of public expenditure (’streamlining’ of public services staff, reduction of budgets devoted to education and the health sector, etc.), massive privatisations, reduction of public subsidies to some companies or products, freezing of salaries (to avoid inflation as a consequence of deflation). These SAPs have not only substantially contributed to higher and higher levels of indebtedness in the affected countries ; they have simultaneously led to higher prices (because of a high VAT rate and of the free market prices) and to a dramatic fall in the income of local populations (as a consequence of rising unemployment and of the dismantling of public services, among other factors).

IMF : http://www.worldbank.org/
programs.

We disagree and say NO to Monopolies.

We disagree and say NO to the transnational corporation (TNCs).

We disagree and say NO to patents to the life.

We disagree and say NO to transgenic crops.

We disagree and VETO to the privatization of the earth, the water, energy and communication.

We disagree and REFUSE to the flow of energy, natural resources and money from the south to the north.

We disagree and REJECT to the policies of free trade.

We claim the SUPREME RIGHT to resistance in order to exercise all these Nos and disagreements, purging all the negatives in order to build the grandiose positive.




CADTM

COMMITTEE FOR THE ABOLITION OF ILLEGITIMATE DEBT

8 rue Jonfosse
4000 - Liège- Belgique

00324 60 97 96 80
info@cadtm.org

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