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Often presented by the media as "anti-globalization" movement, ATTAC is in fact promoting globalization. "Another world is possible" as we said since the June 1999 international meeting in Saint Denis, France preparing the Seattle demonstrations. We are to meet this week in Washington, in Paris and all over Europe. The Tobin Tax, a global response to neo-liberal globalization, will be a corner stone of several meetings and events in April. The Tax is NOT a "new issue" to be added to the already long list : environment, sweatshops, international financial institutions, commerce, neo-liberalism.... At a press conference on April 11 Representative DeFazio and Senator Wellstone will be presenting the "Tobin resolution", to be discussed in Congress during the coming year. During the same press conference the European Deputy Harlem Desir (Head of the "Financial taxation" Euro-intergroup of parliamentarians, ATTAC) and the French Deputy Yann Galut (Head of the ATTAC group in French National Assembly) will be presenting the world "Tobin parliamentarians". The meeting, to be held at the end of June, will take place in a global context in which 100 parliamentarians from several political parties are reuniting to support a resolution drafted by Harry Barnes in the United Kingdom. The Belgium senate already voted a resolution asking their government to officially study the feasibility of the Tobin Tax. The voted counter-amendment to the "Tobin amendment" discussed in the French parliament last December will be discussed and the French presidency of the European Union will be asked to "study and propose a specific tax on all currency exchanges, to fight against financial speculative movements". Strong coalitions of parliamentarians are already at work in Italy, Portugal, Brazil, Argentina to name a few. The US resolution is supported in the United States by several grass-root movements and trade unions: AFL-CIO, Center for Economic and Policy Resarch, Fifty Years is Enough, Friends of the Earth, Institute of Policy Research, Preamble, Steel Workers, Tobin Tax Initiative to name just a few. Some of them helped draft the resolution. You can reach this coalition through Ruthanne Cecil: [email protected] ATTAC, together with its partners, devised a "Tobin questionnaire" for worldwide discussion on collecting and managing the tax. The first results of this questionnaire will be discussed during the Geneva 2000 parallel summit in June (information: [email protected] email), among other topics. It is time for all of us to take a step forward on political and economic discussions and to prepare ourselves for the 2001 United Nations meeting "Financing sustainable development". The main goal is to collectively decide, with the widest possible consensus, on the collection and management of the tax. This will help strengthen our proposals and arguments. In fact this questionnaire is simply a way to rethink the global financial architecture and governance. We strongly invite you to disseminate it as widely as possible and discuss it in your organizations, cities, political parties, unions and so on... You can read and download the document from: http://attac.org/fra/asso/doc/doc14en.htm RTF and PDF versions are also available to help you printout the document. The city of Arcata, which voted a call for the Tobin Tax last year, will promote this idea in other cities. With the help of a "Fair Trade Packet", designed also around issues such as environment, sweatshops, fair trade,etc. will try to lobby city councils to approve it. It is already envisaged that Berkeley, Santa Cruz, San Francisco... may see this packet voted soon. Meanwhile in France the "Morsang Appeal", http://attac.org/fra/asso/doc/doc08en.htm adopted during the national symposium organized by ATTAC in Morsang sur Orge, France with other cities and regional governments, has several consequences. "Let us be actors of globalization and not only victims" is an idea that reunited already 47 cities (from villages to large cities) in all of France and around which an international sisterhood of cities to be developed. Let us not wait for globalization to happen, but let us build our own : with our own agenda and concerns. A website is already online http://attac.org/glocal only in French for the moment to collect documents and information. An international discussion mailinglist for civil servants and regional governments persons is being created. Any information request should be mailed to [email protected] In this context ATTAC will be part of the demonstrations, teach-ins... in Washington, D.C. on April 9-17 (any requests for information for those of you in Washington can de send to [email protected] ). We are organizing also with "Pour l'an 2000, annulons la dette" (Jubilee 2000 in France and in UK) a demonstration in Paris on the April 12 on the debt cancellation, because the "Club de Paris" will start to meet in this city on the same day. It will start at 06:00 pm Place de la Bastille in Paris. It is about time that we "globalize" ourselves and that our concerns over the outcomes of the IMF, World Bank, and WTO meetings turn into concrete and productive proposals. Let us all participate in this movement to make globalization happen the way we pro-actively decide, rather than passively accept their globalization. Laurent Jesover. Redactor [email protected] ______________________________ >From Bangkok to Geneva ____________________________________________________________ Dear friends, This letter contains some useful information pertaining to the implementation of one of the priorities defined in the Bangkok Appeal : the conference in Geneva in June. We are sending you a general presentation of the Geneva conference with preliminary information regarding the agenda and the working plan. Soon we will have a Spanish translation. The official conference will be held from June 26 - 30. Therefore we propose to meet from June 22 - 25. We will need a good month to discuss texts and proposals within our respective networks, fixing the end of May for the mailing of the agenda and the final texts. Consequently, we will have the month of May to prepare, write and amend our projects. At ATTAC France we will have some means to help with the preparation of Geneva but this initiative must be as collective as possible. Thus we propose that we use the "transattac" list to facilitate contact between us. Please let us know as soon as possible which documents or workshops you can take charge of. We look forward to hearing from you shortly. Best regards, Christophe Aguiton, for ATTAC France ATTAC Contacts: Christophe Aguiton [email protected] Ashleigh Searle [email protected] Christophe Ventura [email protected] Geneva 2000 June 22 - 25, 2000 General Objectives and Working Plan This memo is intended to present information currently at our disposal and to facilitate debate and preparation for the Geneva initiative in different countries. General Objectives The point of departure for Geneva 2000 is Seattle. The failure of the World Trade Organization (WTO) meeting and the mass protests in Seattle as well as in other countries introduced entirely new responsibilities for social movements directly implicated in the struggle against "neo-liberal globalization". The different movements present at Seattle, however, were unable to explicitly define a common stance or a coordinated international plan of action. The Bangkok Appeal allowed social movements to establish a preliminary outline of the international situation after Seattle as well as to specify convenient meeting times, specifically the large international meeting to be held in Geneva - June 2000 dedicated to social/development questions. Geneva will also mark the 5-year anniversary of the Copenhagen World Summit on Social Development. The objectives of the Geneva meeting are three: � to further enlarge the coordination network between international social movements, so as to facilitate their participation in the debates taking place during the Geneva meeting; � to discuss the fundamental questions and problems currently marking international debate while attempting to determine positions in common or to, at least, clearly identify areas of difference and debate to be expounded upon in the future; � to elaborate a common document which emphasizes all of the points upon which we are in agreement (the analysis of the consequences of neo-liberal globalization and our shared concerns regarding the social, environmental, and democratic agenda) while also identifying differences and debates yet to be discussed between us; to elaborate a second document which specifies the type of international movement/coordination to be established in order to develop an appropriate working plan for the coming months and years. Other Initiatives The meetings in Geneva are not only taking place in coordination with a UN Conference addressing a theme which concerns many social movements and Non-governmental Organizations (NGOs), but they are also coinciding with an important meeting of the International Labor Office (ILO). In addition, Geneva serves as the seat of the WTO! Hence, we will not be alone. Making contact with other actors present in Geneva during the second half of June 2000 is crucial. Our information at this point: �The UN The Conference itself will last from the 26th until the 30th of June, the inaugural session being Sunday the 25th around 6 p.m. For all movements and NGOs wishing to participate in the discussions of the Conference, it is possible to demand accreditation. Some of our current partners are already accredited/ ManiTese from Italy, etc. �The ILO � This organization is also holding an international meeting in June (Directional Committee or AG) which will facilitate the presence of unions at many of our initiatives; mainly those who would be ready, in any case, to participate in debates with "civil society" regarding questions of particular importance to them (i.e. social norms). One difficulty we may encounter is the traditional hesitation of "social partners" (unions and employers) to dialogue with structures they consider largely unrepresentative (other social movements, NGOs). Progress has been made regarding this point though resistance and hesitation may still prove to be problems. �Associations and NGOs � A structure has already been put in place to coordinate parallel initiatives. Some of our partners (ManiTese, WEED from Germany, etc.) are included in this coordination. In Switzerland, four principal groups are responsible for the coordination of "Geneva 2000 : �Social Watch � ICSW, The International Council on Social Welfare � WEDO, Women's Environment and Development Organization �World Council of Churches These four groups are participating in the organization of parallel initiatives with the NGLS (" the Non-Governmental Liaison Service ", the UN service that links movements and NGOs). There is also a Swiss coalition of NGOs, " Swiss Coalition " or " The Working Community of Swiss NGOs ", that is willing to collaborate on further parallel initiatives. More complicated is the creation of a " Forum " of NGOs and civil society, financed by the Helvetic Confederation and sponsored by many personalities, some of whom make up the Helvetic management; the forum has the responsibility for all parallel initiatives. In the framework of the Forum, many things are possible; we could have conference rooms at a reasonable price, however, there will also be a symposium organized by the Swiss government that will be attended by the directors of the Davos forum! We met with these movements and structures in Geneva, with ATTAC Switzerland and the Anti-WTO Coalition on Wednesday, March 22nd. A general agreement was reached with the NGOs on the possibility of working together and on the possibility of organizing a parallel summit. Concerning the question of the Forum, it will be up to ATTAC and the Anti-WTO Coalition to make the decision at their respective meetings on April 1st and 3rd. At this stage it is necessary to develop ideas regarding the proposals we ought to make to them. Perhaps it would be best to propose that we all work on two documents (or two types of documents): one document addressed to the "peoples of the world" or at least to social movements, unions, and NGOs interested in the coordination of the struggle against "neo-liberal globalization"; and one document addressed to the UN Conference, containing the recommendations of NGOs and social movements. This is the separation we made at Bangkok; it is mainly operational. Apparently certain groups will be interested in one document more than the other will. The common approach, however, will allow all groups to share a common organizational structure (making, for example, the 24th and the 25th a coordinated final general assembly) while, at the same time, showing clearly that we are able to work together and defend similar positions. At our meeting on the 22nd, the NGOs present did not yet know if their working papers were going to be presented at Geneva or not. � A protest in front of the WTO. This is another important facet of our activities in Geneva: to show, when the negotiations are resuming within the framework of the WTO, that the social movements, unions, and associations are present and do not intend to let down their guard. On the 22nd we decided that at noon on the 25th we would open with a rally that would allow for the different movements present would have the opportunity to express themselves and present the their work. At two o'clock, we will begin our demonstration at the headquarters of the WTO. �Agenda This rough agenda addresses our broad concerns and objectives. Other initiatives and debates will surely be organized by one of the structures interested in the UN. When we meet with them, we must list what we are able to eventually organize together, and we must find the clearest and most coherent manner possible to present this information. If we reconsider the objectives presented at the beginning of this note, we can define a list of themes and hence workshops to organize. � To enlarge the participation of the movements, it is necessary to have agendas that correspond with the concerns of the participants and which facilitate debate. Concretely speaking, this can take the form of meetings and working groups divided according to continent, social sector, and specific militant concern. The meetings by continent have proven very positive thus far, for example at the June 1999 Paris meetings. The European-ATTACs plus partner associations have already decided to meet again at Geneva in June. With respect to all that is social sector or militant concern, we must consider specific demands, though it seems pertinent to organize meetings that address: women (around Beijing +5 and mainly the world march), farmers (with Via Campesina), unions, the unemployed and/or "urban movements". These meetings allow us to exchange insights and ideas and to discuss the heart of the debates. For example, a meeting around the World March of Women would allow a discussion about globalization, women and gender at large. � The second objective includes debating seriously the questions posed at the international level. Here is a preliminary list of themes that seem particularly important to consider : � The debt: the poorest countries and other countries from the Global South / ways to control debt accumulation / attitude to adopt regarding the initiatives of the G7. � Social standards/norms : should strict rules and demands be defined, like the refusal of child labor or union rights / the best way to present and implement these demands �Environmental standards � Pension funds / their role in financial speculation and the deregulation of the economy, an exchange between countries where pension funds exist and countries where various movements are fighting against the introduction of pension funds � The protection of social rights / the role of public services and the public sector �The appropriation of living matter � The growth of multinational and what kind of action we can take to fight the expansion of their power � Financial speculation, the Tobin Tax, and tax havens � Post-Seattle and financial crisis, the restructuring of international institutions, the development of new responses � The third objective is to produce a document that defines the points upon which we are in agreement as well as a list of debates to pursue so that a working plan and a definition of the international network can be established. For this, it will be necessary to unite a "Resolutions Committee " early on to work on and enrich the text with the contributions of the various working groups. It will also be necessary (this is true for the working groups as well) to present pre-projects before June that will allow the different delegations to better prepare for the conference. Concretely, it will be necessary to start, at the latest, on the morning of Thursday, the 22nd with a plenary assembly, which will present and discuss the agenda and the challenges ahead. This discussion will continue in the thematic working groups on Thursday afternoon and all day Friday. The evenings will be reserved for informal discussions (in order to finalize the final resolution). Moreover, the continental meetings can begin on Wednesday afternoon and evening to maximize the time of those coming from far away. The plenary assembly for the adoption of resolutions will last all-day Saturday and Sunday. Working Plan � End of March: two letters / one to the original signatories of the Bangkok Appeal to consider, together, how to organize and handle the parallel summit (who is responsible for what, division of labor/tasks, etc.) and the other to the rest of our contacts worldwide; � Beginning of April: Set-up of a centralized information network and responses to our contacts: a specific Web site (or at least pages and a logo) for "Geneva 2000", telephone and fax lines, etc. Paris and Geneva will both play an important role in this centralization. � Mid-April: elaboration of the preliminary texts on the points of debate, thanks to email it is possible to divide this responsibility; � Meeting on the 26th of April in Geneva, of the core team responsible for the parallel summit; adoption of an agenda and the mailing of the first series of fundamental texts; beginning of the elaboration of the final resolution; � During all of the month of May: verification of the presence of the principal continental movements; circulation of texts and the passing back and forth of the final resolution; � Beginning of June: mailing of the final resolution. ______________________________ Prague 2000, need urgently your active solidarity ____________________________________________________________ Dear Friends, In the forwarded mail you can read that we'll have problems with "legal" protests against the IMF/WB meeting in Prague in September. tell us, please, if you have any idea to help us actively! all the best, Andreas Rockstein <[email protected]> The City of Prague has told 4 times NO to people wanting to legalize demos in September. So after four attempts we don't know what might happen, lets hope they will be more reasonable... If CZ authorities are so stupid to so obviously provoke violence then, we are all helpless-there will be violence-of which the dimensions will be different than we might expect. People will finally see how the eastern mafia is a big political actor where there is trade of oil, water, land, alias WB/IMF businesses...etc...by way of repression... But we have to wait more before making conclusions. Maybe we will have to internationally press on them with letters of complaints signed internationally , if they will make any legal demo impossible.. if not making them legal ourselves anyway..!! In the meanwhile CZ police are sending their experts to Washington FBI in order to train them how to deal with extremists and they are successfully listening to some organizers trough mobile phones at this stage ,which is not a new thing...... Besides, all the media in CZ are already propagating violence in all possible way, as if they wanted violence. But nobody from the Czechs spoke about it of course. That is why the alternative media groups will have to be really well equipped and numerous to report this fake propaganda. This is the central task- the most important for people in Prague and for the outside activists, and finely for CZ citizens who are already now being told that terrorists will come to destroy the town. Also to report the so expected police violence a lot of activists with reporting skills and equipment will be needed here in Prague! The city newspapers are announcing 20000 demonstrators and on the other hand the visa procedures are made complicated to large part of the demonstrators that will want to come. The visa procedure is indeed very complicated. Will require a lot of money for people coming from the developing countries.A nd besides the visa procedure will change again in June, so please start sending us details of people that wish to come to Prague. A good side of it is that we have the Geld Oder Leben coming to Prague, this is a strong presence , appropriately radical to additionally scare the city police.. and the IMF/WB officials.. Unfortunately the local NGOs have resulted more than disappointing, including the local Jubilee 2000(!!)in coming to terms of non violent direct action participation. Are we surprised? Yesterday there was a panel discussion with NGOs ,WB representatives and Eric Toussaint-in the name of CADTM(ATTAC branch)-representing the Initiative... arguing with WB on the issues that have for years been "on the table" The results of it should have been on the official web of Prague people- http://go.to/stopmmf -which will hopefuly serve us with some english translations of the panel discussion and the press release soon. Lets see what people tell us. ______________________________ Please help ____________________________________________________________ Tunisian ATTAC members were arrested by Tunisian police. Fathi Chamki and Mohamed Chourabi were arrested by the police Saturday 9th April in Slimane. Fathi Chamki is the President of the RAID and Mohamed Chourabi is one of the active members of this organization (ATTAC Tunisia). Please email to the Ministry of Justice and to the Ministry of Interior: [email protected] and [email protected] (and copy [email protected] and [email protected] ) to express in a polite way: 1- your concern about the arrest 2- your need to know more about the reasons of the arrest 3- your hope to see them freed soon Note: the Tunisian constitution is protecting the freedom of being and making a NGO. (at least it is written in it) ______________________________ Taking Action for Change ____________________________________________________________ Action for effective change. Using expertise to back up our proposals. Making the abolition of debt a reality, getting all, absolutely all, of the third world debt cancelled. On April 12th, Jubilee 2000 in collaboration with ATTAC invites us to demonstrate in favour of solidarity, of a decent future for billions of people in the world. The Club of Paris, which will be meeting in Paris in April, is one of the biggest creditors of third world debt. We must use this opportunity to take action and propose that the debt be cancelled. The demonstration will leave from the Place de la Bastille at 18h 30 (local time) on April 12th. The public debt of the third world (including countries of the South and the East) amounts to 1 500 billion dollars. That of the Quad (US - EU - Canada - Japan) amounts to 15 000 billion dollars, and that of American households to 5 500 billion dollars (figures for 1998). The absolute value of third world debt is therefore trifling with regard to total world debt. The debt due to the International Monetary Fund and to the World Bank (the other creditors being either private - Pension Funds, Mutual Funds, banks - or the States themselves) is what enables Structural Adjustment Plans to be rigourously imposed by the intermediary of these institutions, which flatten public services and put obstacles in the way of any concerted effort towards development and progress. They keep the peoples in a state of chronic under-development. The debt is used as a form of colonialism. There exists a market for debt. That is where the holders of countries' debts speculate. The bonds of debt are exchanged just as though they were "goods". Their value depends entirely on stock market brokers (who give marks to countries' debts), and hence on speculators in a "financial bubble" system. Debt is looked upon as an object for speculation, disregarding all other considerations. To keep up payments on the debt, countries have to export, so as to acquire foreign currency. What they produce (more often than not raw materials) is subject to the willingness of the importing countries (which are also the creditors). These countries can impose their price, via the value attributed to the raw materials, and make their own rules. A good example of this was a recent EU directive, altering the regulations about the amount of cocoa to be contained in chocolate. The result of lowering this amount is social, economic and human catastrophes in countries which produce cocoa. This whole process deviates the creative energy of the economy from the fulfilment of urgent and primordial internal needs, to the satisfaction of needs which are external, and foreign to the welfare and development of the peoples. Debt is used as a commercial weapon to perpetuate a chronic state of dependence. To help create the conditions for billions of people on this planet to have a future, we invite you to sign the petition For Citizen Control of the WTO at: http://local.attac.org/petition/ To obtain information on the demonstration on April 12th in Paris, contact http://www.attac.org/fra/cale/ . Barbara Strauss. [email protected] ______________________________ Canada Draws Lessons from Jubilee Debt Campaign ____________________________________________________________ The Canadian Jubilee campaign agrees with our partners in Jubilee South who say "There can be no effective redressing of North South relations or effective debt action if the people of the South are not directly involved." The G7's K�ln Debt Initiative is totally inadequate. The HIPC Initiative was a creditors' initiative - it came from creditors who knew they could never collect about half of low-income countries' debts. Eric Toussaint correctly describes the K�ln terms as offering "a drop of reduction in an ocean of debts" since the new debt reduction only amounts to at most 2.6% of developing country debt. How do we account for our failure to make more progress at K�ln? The vague wording of the Jubilee petition was both a strength and a weakness of the campaign. How to define "poorest countries"? "unpayable debts"? Different national campaigns had different definitions. Our understanding of "unpayable" evolved. Canada took it to mean all of the debt of 50 plus low-income countries and a portion of the debt of middle income countries Other Northern campaigns took different perspectives reflecting positions which took into account historical precedents and/or human development indicators. At the first international meeting of the Jubilee movement held in Rome in 1998, participants struggled with the word "unpayable". "The Jubilee Call for Debt Cancellation" issued in Rome linked four kinds of debt to this malleable word: � debt which could not be serviced without placing a burden on impoverished people � debt that in real terms has already been paid � debt for improperly designed projects and programs � odious debt and debt incurred by repressive regimes. We in Canada came late to the Jubilee campaign after it was already launched in the UK. The UK petition was already circulating in Canada when we held our first meeting. We were critical of the narrow focus of the UK petition - for debt remission for low-income countries only and its lack of specific criticism of Structural Adjustment Programs (SAPs). In retrospect we see that we should have been bolder - limiting our demand for debt remission to 50 countries identified as "the poorest" enabled the Canadian government to get off too easy. Currently we are asking the Canadian government to announce in the federal budget at end of February an extension of its offer of 100% bilateral write-offs to all low-income countries Challenges for the Next Stage of the Jubilee Debt Campaign IMF solutions and "progressive conditionality" The next stage of our campaign must reject all conditions as undemocratic violations of sovereignty. We see ourselves as marching forward in step with the Jubilee South Summit which "rejected all policies derived from the ... neo-liberal paradigm. Delegates demanded an end to Structural Adjustment Programs, at the centre of neo-liberal imposition and co-optation, and all new versions of SAPs including those encompassed in the ... IMF Poverty Reduction Facility, as well as the notion of external conditionality in all of its dimensions or forms." Jubilee South's explicit rejection of all forms of external conditionality challenges us to stand with them in demanding an end to Structural Adjustment Programmes (SAPs ) and not just their modification. The IMF's Poverty Reduction and Growth Facility ( PRGF) must be seen in the context of efforts by the international financial institutions to maintain and enhance their power. While the rhetoric of the PRGF is about poverty reduction its actual documents on operational issues tell us otherwise. In attempting to explain how the Fund and the Bank will collaborate on implementing the PRGF, the IMF reveals the wide extent of the conditionality it intends to maintain: The Fund staff will take the lead in offering advice to the authorities in the areas of its traditional mandate and responsibility. This would include promoting prudent macroeconomic policies; structural reforms in related areas, such as exchange rate and tax policy; and issues related to fiscal management, budget execution, fiscal transparency and tax and customs administration. The same document then adds: The Bank staff will take the lead in advising the authorities in the design of poverty reduction strategies, ... the design of sectoral strategies, reforms that assure more efficient and responsive institutions, ... and in other structural reforms such as privatization and regulatory reform. As if these conditions were not sufficient, the document goes on to add that the government that is nominally responsible for the Poverty Reduction Strategy Papers (PRSP) will receive advice from both the Bank and the Fund on many other areas. These include the "establishment of an environment conducive to private sector growth, trade liberalization and financial sector development." Elsewhere the same document makes it clear that the Boards of the Bank and the Fund can veto assistance to these countries under the HIPC Initiative or other Bank or Fund programs if they are not satisfied with the policies outlined in the country's Poverty Reduction Strategy Paper. Is this really a new direction? The words of the Netherlands Executive Director to the IMF commenting on the PRGF to NGOs are very clear: "It's not about abandoning conditionality ... The IMF still leads on macro, the World Bank on social. In reality it's not that big a departure; it's in our interests to make it seem like a big deal." Is the World Bank really able to advise on poverty reduction? An internal World Bank study leaked to the Financial Times found "a disconnect between Bank policy and practice." The internal study reviewed 54 structural adjustment and sectoral loans made between July 1997 and December 1998. The Bank's review concluded: "The majority of loans do not address poverty directly, the likely economic impact of proposed operations on the poor or ways to mitigate negative effects of reform." A major problem is the incompatibility of the Bank's two roles - as a lender and as a poverty fighter. The former role too often overshadows the latter. The World Bank functions much like a private lending institution where the staff advance their careers by successfully persuading clients to take on new loans. The poverty alleviation or poverty aggravation effects of those loans don't show up until years after the money has been spent and the lending officer has moved on. As Martin Khor has written "The IMF practices double standards... On the one hand it insists that the governments play by strict market rules and not put in money to aid ailing local financial institutions and companies. But on the other hand it wants the governments to pay back all the external loans contracted from international banks, including the huge debts of the private sector that have gone sour." A major challenge for the Jubilee campaign is to confront this practice whereby the IMF and the US Treasury, in consort with other governments and International Financial Institutions, use public money to bailout private foreign investors, burdening peoples with ever higher debt loads. In the absence of any kind of standstill mechanism or capital controls, private investors are free to take their money and run at the first sign of trouble. While bailout loans nominally go to the governments of the crisis-stricken countries, the money often ends up in private coffers. When the IMF provides a central bank with more foreign exchange reserves and at the same time prescribes austere fiscal and monetary policies, speculators know they can bet against that country's currency with a high degree of success. This is scandalous. Michel Chossodovsky cites the Wall Street Journal's succinct description of what happened in Brazil: "the $41.5 billion of foreign currency that the IMF marshaled to back Brazil's currency, was doomed to end up with the speculators, leaving Brazil with its foreign currency debt increased by that amount. So often has this scenario been played out... [for] other currencies kept at artificial heights with interest rates, that by now the ploy should be known to schoolboys. The government whose currency is attacked draws on foreign loans arranged by the IMF, and turns over the foreign currency to buy back its own paper. The 'assisted' country ends up with the foreign debt to the amount of the 'aid' while the speculators pocket the proceeds of the loans, and move on to the next replay of the scam." Chossodovsky concludes the IMF, the G7 and 14 other countries that co-financed the bailout "bear a heavy burden of responsibility in endorsing a multi-billion dollar scam conducive to the brutal impoverishment of the Brazilian people." Decommissioning the IMF Addressing the IMF's practice of bailing out private creditors necessarily takes us onto the wider challenge to "decommission the IMF" to use Walden Bello's evocative comparison with the decommissioning of a nuclear power plant. The Jubilee South Summit concluded that the IMF and the WTO cannot be reformed "So Shut them down!" But it won't be an easy or simple process to abolish them. Walden calls for "an immediate dismantling of all SAPs; an immediate reduction of the IMF professional staff [and] major cuts in both capital expenditures and operational expenditures of the institution". As we debate ways of decommissioning the IMF, we must keep in mind the need to also propose alternatives to fulfill one of its origin functions - dealing with financial crises. Instead of having to turn to the IMF at times of financial crisis, all countries must have the option of declaring a standstill on their debt payments and turning to a neutral adjudicative body that does not impose conditions on the write-down of unpayable debts. Archbishop Njongonkulu Ndungane of Cape Town, speaking at the Jubilee South Summit, describes the need for "an independent arbitration process, a form of insolvency procedure which will ensure that creditors no longer call all the shots when countries run into difficulties." The World Bank can afford to write off low income debts out of its reserves worth some US$3.24 billion. The Bank has another US$16.7 billion in "retained earnings" (or what a private bank would call profits). These could be used without seeking more contributions to the HIPC Trust Funds which legitimize HIPC itself and its Structural Adjustment conditionality. Forcing the World Bank to use its own reserves would make it take responsibility for its imprudent lending in the past. Similarly the IMF has loan loss reserves worth some US$18 billion. Forcing the Fund to use its own reserves to write off illegitimate debts could also be a step towards its decommissioning Genuine South-North Dialogue We in the Canadian Jubilee campaign take the position that the agenda for future Jubilee debt campaigning must be worked out in dialogue with Jubilee South. I repeat that we agree with our partners in Jubilee South who say "There can be no effective redressing of North South relations or effective debt action if the people of the South are not directly involved." It is unacceptable for northern campaigners to set priorities for Southern groups to follow. Solidarity demands a genuine dialogue between Southern and Northern groups to develop complementary responses wherein campaigns can be adapted to different national realities. We need to dialogue concerning how we can build the case for canceling middle-income country debt through highlighting actionable issues. We need to show how the 40 million Brazilians who live below the poverty line are as oppressed by debt as are the poor in Malawi. In this same spirit we have suggested that UNCTAD or the UNDP could play a role in auditing the origins of all LDC debt. We may not have the capacity to do everything all at once but we certainly intend to move beyond lobbying G7 leaders to campaigns that recognize the social, political and ecological debts owed by North to the South. Genuine partnership requires dialogue. We embark on this dialogue in the spirit of the words of Samora Machal who once counseled that "International solidarity is not an act of charity. It is an act of unity among allies fighting on different terrains towards the same objectives." Resource Center for People's Development #24, Unit 7, Mapang-akit St, Pinyahan, QC, Philippines telefax- (632)4361831 tel - 4350815 email: [email protected] ______________________________ The US spends more on arms... ____________________________________________________________ "The United States spends more on arms annually, $275 billion presently, than the rest of the Security Council combined. U.S. arms expenditures are approximately 25 times the gross national product of Iraq. The U.S. has in its stockpiles more nuclear bombs, chemical and biological weapons, more aircraft, rockets and delivery systems in number and sophistication than the rest of the world combined. Included are twenty commissioned Trident II nuclear submarines any one of which could destroy Europe." Former U.S. Attorney General Ramsey Clark, Letter to the UN, November 1998 "Today, the United States spends more on military arms and other forms of "national security" than the rest of the world combined. U.S. leaders preside over a global military apparatus of a magnitude never before seen in human history. In 1993 it included almost a half-million troops stationed at over 395 major military bases and hundreds of minor installations in thirty-five foreign countries, and a fleet larger in total tonnage and firepower than all the other navies of the world combined, consisting of missile cruisers, nuclear submarines, nuclear aircraft carriers, destroyers, and spy ships that sail every ocean and make port on every continent. U.S. bomber squadrons and long-range missiles can reach any target, carrying enough explosive force to destroy entire continents with an overkill capacity of more than 8,000 strategic nuclear weapons and 22,000 tactical ones." Michael Parenti Against Empire, 1995 "[Nearly 70% of the military budget] is to provide men and weapons to fight in foreign countries in support of our allies and friends and for offensive operations in Third World countries... Another big chunk of the defense budget is the 20% allocated for our offensive nuclear force of bombers, missiles, and submarines whose job it is to carry nuclear weapons to the Soviet Union... Actual defense of the United States costs about 10% of the military budget and is the least expensive function performed by the Pentagon..." Rear Admiral Gene LaRoque, United States Navy (retired), explaining the nature of the U.S. "defense" budget. This is the free Political Literacy Course from Common Courage Press: A backbone of facts to stand up to spineless power. http://www.commoncouragepress.com ______________________________ European Trade Commissioner Seeks Consensus ____________________________________________________________ The international community will be eagerly awaiting the outcome of Pascal Lamy's visit to India. And why shouldn't they be? The outcomes of the Seattle Ministerial Conference and the UNCTAD X which recently concluded at Bangkok have brought India back into the forefront of international economic policy making. It is not only the EU's trade supremo, Mr Lamy who visits India soon after these two events. His visit was preceeded by the World Trade Organisation (WTO) director general, Mike Moore and will be followed by the US president, Bill Clinton who will be also be testing out the waters in India on the stalled process at the WTO. Unlike Mr Moore, Mr Lamy decided to meet with the civil society, in addition to business and the government. He also spoke at the Indian Institute of Foreign Trade. At the end of his visit, one wonders whether he was able to sufficiently engage India into agreeing to the EU-proposal for a 'comprehensive trade round' with some innovative selling techniques and/or offer chips that India would bite. Even if it is too early to judge the outcome of Mr. Lamy's India-visit, it needs to be mentioned that he was not quite successful in giving a positive signal in this direction during his interaction with civil society organisations. The meeting, chaired by Mr. Pradeep S. Mehta of the CUTS Centre for International Trade, Environment & Economics, was organised by the Delhi office of the European Commission. The fact that Mr Lamy met with civil society groups separately was indeed very valuable. He took the opportunity to announce the setting up of an Indo-EU network of think tanks, which would be a track-II process of resolving differences between the two trading partners. His initial remarks reflecting EU's concern on the differential and negative impact of unfettered globalisation and liberalisation, a position similar to India's, set the discussion on the right tone. Mr Mehta raised the issue of the strained North South relations in the trade arena as a deep reflection of the lack of required balance and equity. This was evident at Seattle, he said, where the third world united on several issues. Disappointingly, the rest of his interaction did not really reflect EU's willingness to set the ball rolling. On the contentious issues of labour standards, environment et al, he continued to parrot his old line. One found it a bit difficult to digest such programmed reactions given his elaboration on the lessons that EU had learned from what happened at the Third Ministerial in the area of procedures and substance of discussions during negotiations. Plagued by questions from NGO-representatives on the EU-position vis-�-vis labour standards, especially after the Seattle fiasco, Mr. Lamy had nothing new to convey. "A Joint Working Forum between the WTO and the International Labour Organisation (ILO) would help to raise the profile of the labour issues", was his answer to questions in this context. He said that they are under huge domestic pressure to address this issue under the WTO umbrella. He reiterated that EU was not in favour of sanctions, and to that extent the EU position was quite different from that of the USA. However, he was hopeful that the US would come around to the European position. On environment, he was categorical that environment had a natural relationship with trade, and that it is already there and therefore has to be discussed at the WTO. He was on the target, while expressing his concerns about the increasing importance of dispute settlement panels which was interpreting the interface between trade and environment. According to him it is the membership who should define the relationship and the direction of the debate on these issues at the WTO. During their interventions Dr Sanjaya Baru of the Indian Council for International Economic Relations (ICRIER), Dr. Nitish Sengupta, MP, and others highlighted the positive change in the perception of Indian policy makers and a broad consensus among political parties towards 'open' policies. This in turn required a positive response from the EU and the US, the two big powers. Mr. Lamy, instead of using this opportunity to express his eagerness to engage Indian policy makers, mundanely emphasized that India needs to agree on investment and competition, if it actually wanted to reflect its support towards 'open' policies. Again reflecting that EU was only interested in pursuing a 'one-way traffic' approach with India. On the linkage between trade and development, Lamy said that it was the developing countries who are blocking progress. This is because they do not like the coherence approach of getting all international institutions to work together. What he does not appreciate is that the poor countries do not have faith in such an approach given the fact that both aid and trade are declining. They would rather see improvements in terms of trade, tariff escalation and tariff peaks, and adherence to the special and differential treatment, which would enable them to increase their exports. Such views raise a question mark with respect to EU's commitment to be prepared "to adjust to each others (i.e. India's) position" as well as to articulation of these positions. Such contradictions will only add to the confusion with respect to the objectives of Mr. Lamy's visit. Furthermore such comments also reflect the lack of appetite of the EU about effectively engaging influential developing countries like India in the area of international economic policymaking, an issue which they themselves have been preaching for a long time. Reportedly India's Commerce Minister, Mr Murasoli Maran after meeting Mr. Lamy, has taken a stand that one need not embark on a new round, as there is no convergence in perception of players involved in the process. Which of course does not mean that India is opposed to a new round, a subtle shift from its stand at Seattle. However Mr Maran was firm that non-trade issues and even investment would have to be removed from the agenda if India's support is required for a new deal. This was also the view that was expressed by both the civil society and the business chambers that Mr Lamy met the same day. It is also reported that Mr. Lamy and Mr. Maran have decided to engage in bilateral discussions for an acceptable agenda, simultaneously holding parallel consultations with other WTO members. However these talks will only be successful if the EU realises that it will have to give up several demands for anything to move at the WTO. In response to its posture that it would not engage on the in built agenda on agriculture and services, India and other developing countries have already pointed out that the necessary trade offs and concessions were delivered during the Uruguay Round negotiations, therefore to expect more concessions is patently unfair. CUTS Centre for International Trade, Economics & Environment, Jaipur ______________________________ Washington - Paris ____________________________________________________________ International demonstrations and proposals. In the United States a wide range of groups, NGOs, unions will be starting to demonstrate in Washington from the 9th to the 17th, for the debt cancellation, against the International Monetary Fund and the World Bank policies to propose a new world. On the 11th a press conference will be held in the Congress to present the resolution on the Tobin Tax drafted by the Representant DeFazio and the Senator Wellstone. This press conference will also introduce the world reunion of pro-Tobin representatives organized by two Euro parliamentarians, Harlem Desir and Glyn Ford that will be held in the coming weeks to reunite elected persons from around the world that are currently trying to put forth Tobin Tax resolutions in Argentina, Belgium, Brazil, France, Italy, Japan, Mexico, Portugal, Spain, Swiss, United Kingdom, United States and so on... Many groups, movements or unions in the United States have helped this US Congress resolution to be drafted among which some are reuniting to build an "Tobin network": AFL-CIO, Center for Economic and Policy Research, Preamble, Tobin Tax Initiative to name a few. Contact: Ruthanne, [email protected] At the same time in Paris an international demonstration will take place the 12th April. The French Debt coalition "Pour l'an 2000 : annulons la dette" and ATTAC France are calling for an INTERNATIONAL DEMONSTRATION on the occasion of the Paris Club meetings on Wednesday 12th of April from 6 p.m in Paris, from Place de la Bastille to Bercy, Ministry of Finance We need the support of every northern and southern organisations that participate in debt coalitions. The coming meetings of the Paris Club will allow us to reassert our commitment to a full and immediate cancellation of the debt. We are counting on your participation. Campagne � Pour l'an 2000, annulons la dette !� CCFD - 4 rue Jean Lantier, 75001 PARIS - France T�l: 33 (0) 144 828 153 - Fax : 33 (0) 144 828 145 e-mail : [email protected] web site : http://www.dette2000.org/ What is the Paris Club ? The Paris Club gathers the main creditor countries. They meet regularly to re-evaluate the debt of poor countries, and possibly offer debt relief. Why this demonstration ? Thanks to the international mobilization to cancel the debt of poor countries, 20 million persons throughout the world (550.000 for France) have signed the petition in favor of debt cancellation. At the K�ln G7 Summit in june 1999, the richest countries have decided to cancel approximately half of the debt of the 42 Highly Indebted Poor Countries. The measures that have been proposed are very unsufficient, they are being applied too slowly and the conditions imposed by the IMF are unacceptable. Early this year, countries such as Canada, the United States, the UK, Italy and France started to show some efforts. The time has come to get a full cancellation of the poor countries' debt, with transparency, and strong participation of the civil society. ______________________________ Irish politicians listening to public opinion for increased support for the Third World ____________________________________________________________ On Friday 30th March, DEFY (Development Education for Youth), who have co-ordinated the campaign to achieve all-party support for the UN target of 0.7% of GNP to Overseas Development Aid by 2007, invited development agencies, youth organisations and a number of social partners to meet and discuss the latest developments in the campaign. They were able to announce that, as a result of the campaign, the Taoiseach (PM) had committed the government to a target of 0.73% by 2007. The Minister of State for Foreign Affairs, Ms. Liz O'Donnell, stated as recently as 23rd. March, in the Dail (Irish Parliament): "I will shortly bring proposals to cabinet which will guarantee an incremental multi-annual budgetary allocation with a view to reaching the target. The target for 2007 announced by the Taoiseach is 0.7%". Liam Vegimont, director of DEFY, was delighted to announce that all political parties, government and opposition, had agreed to the target and he added that the campaign committee would continue to lobby, monitor and ensure continued annual progress towards achieving 0.7% of GNP to ODA by 2007. On the same day, the Irish Labour Party hosted a seminar on the topic of "Justice for the Developing World: a challenge for Ireland and Europe." The leader of the Labour Party, Mr. Ruairi Quinn, introduced the text of the "Ireland Aid Bill, 2000" which aims to put Ireland's commitment to increase ODA to the UN target of 0.7% of GNP on a statutory basis. Ruairi Quinn stated that Ireland had the finances to reach this target and promised: "Within two years of Labour participating in any future government, our ODA will reach 0.7% of GNP and this will be enshrined in law to prevent any backsliding by future administrations." He added however that ODA, while necessary, would not be sufficient to meet all developmental needs and announced Labour Party support for a global tax on currency transactions. Mr. Prionsias De Rossa, MEP, reminded the audience of the thinking behind the Tobin Tax and of the benefits which could be derived from its introduction. He announced the forthcoming launch of a Labour Party campaign on this issue, an announcement which is warmly welcomed by Attac-Ireland. He also analysed the social impact on the developing world of the debt crisis and called for support for the Jubilee 2000 initiative. He concluded: "There is little point in our raising our aid targets, as I believe we must, if that aid is merely to be returned one hundred fold to the wealthy nations of the industrialised world in the form of debt repayments." The third session of the seminar dealt with the need to sustain development in a global economy, focussing on the Lome agreement. The Labour Party Spokesperson on Development, Ms. Joan Burton, who chaired this session, made a special plea on behalf of the 125 million children who are denied access to education and suggested that the World Education for All campaign was an obvious and suitable focus for new spending. Claudine, Attac-Ireland [email protected] # distributed via <nettime>: no commercial use without permission # <nettime> is a moderated mailing list for net criticism, # collaborative text filtering and cultural politics of the nets # more info: [email protected] and "info nettime-l" in the msg body # archive: http://www.nettime.org contact: [email protected]