What is the debt crisis, and why is it called a crisis? That means (that) the poorest countries in the world will not be able to pay their debts, and will never be able to pay their debts. They borrowed more money each year to pay off old debts. So every year they borrow money to pay the debt and more debt. Every African people owe £ 225.
Every year the Africans gave £ 2 to rich countries but ended the year with a debt deeper. We can play it and see it from a different direction - on average we receive £ 1.30 a year on debt payments for the services of the people of Africa. But we get £ 51 a year in the form of subsidies for African workers meaning subsidies for coffee, copper, or brown. We, however, give the people of Africa aid, and we gave her £ 7 a year. So this is what the help is - we give back £ 7 to the people of Africa from the £ 51 that they gave us. Of course, £ 51 given to us was not distributed evenly - I do not get my share - but it gives us the impression (the case) of a transfer of wealth from poor countries to rich countries.
Each year Africa borrowed $ 12 billion, but every year Africa pays a debt of $ 14 billion (all figures are in the US $). So they nonetheless have been impoverished by $ 2 billion. $ 1 billion of here falls into the IMF, which is assumed to help development in poor countries. We provide some aid to Africa, but one-fifth of the aid is back as soon as possible as the debt payment for services. So it was a relief for the IMF and the banks (in) the north.
Poor countries are always borrowing and debt crises have occurred in the past. In 1820, the US is a poor country and borrowed English. The debt crisis occurred in 1842 when 11 US states collapsed, and they never pay their debts to the UK. After the First World War, the British borrowed money from the US. The debt crisis in 1932 and the UK slumped. Britain now owes about $ 20 billion since the First World War which was never paid. Economist Charles Kindelberger explains why you get a period of growth where there is real earnings growth and the expansion of bank credit very quickly. Finally, the money growth exceeded productivity - where money then fell into speculation. Speculation is not only certain but also causes the darkening of the more speculative lending. This often includes lending to poor countries - and you get something called 'loan-pushing' (the urge to borrow) which in fact banks encourage borrowers to borrow money they do not need. This causes economic bubbles and huge expansion - this is called periods of mania (mania period). At the end of this bubble burst, prices fall, and banks try to get back their money - this is called a panic (panic). The loan is dismissed so that everything is collapsing and that is called destruction (crash). Capitalist circles (capitalist cycle) is a cycle that has lasted for 50 or 70 years, and it still continues. We experienced mania in the 1820s, 1860s, 1920s, and 1970s. Part of mania-mania is lending to poor countries, and at the end of periods of mania poor countries are often forced to borrow money just to pay back their loans. This is what the US actually experienced when borrowing money from the UK in the 1820s and the British borrowed from the US in the 1920s. So the debt crisis that we see today is not a phenomenon, this is a normal part of the circle of a capitalist economy.
But the circle that is happening today is different from what happened in the past. In 1970 the poorest countries in the world owes $ 70 billion. Entering 1980 they owed $ 600 billion, nearly nine times that of the previous debt. How could this happen? In the mid-1970s real interest rate is negative. Banks chase poor countries to borrow money. The period of panic came in 1979, but, like the panic in 1929, followed by a crash, panic in 1979 was not followed by a crash. In 1930 workers next to the north lie the visible effects of depression. Northern capitalists also pay, while South capitalists and laborers southern actually benefited. Latin America in the 1930s shows a period of growth and industrialization - one reason is the neglect of Latin America to pay its debts and even save money () in the nation. The ruling classes decide what happened in 1979 will not be repeated again. They decided that bruhaha, both North and South, had to endure this time of crisis. They introduced the policies of the neo-liberal free market, especially policies that transferred money from poor countries to rich countries. In the north suppression of the workers and a decrease in salaries. At the same time, they also suppress the South. This is done in two different forms.
There was a growth rate that is very large. From 1977 to 1981, interest rates increased by 10 percent. Countries are taking loans at negative real interest rates and face the fact that they suddenly have to pay 9 percent - and they can not afford to pay it. So they take out new loans to repay the old loan - but this is not even enough. Between 1984 and 1989 amounted to $ 100 billion has been transferred from poor countries to rich countries - this is the difference between new loans and aid they received to reissue the loan as well as the flowers they do.
Between 1989 and 1989 the amount of these debts in berlin doubled. Most of the expenditure here is reset (refinancing) of old debts. Debt has been duplicated since it was first borrowed. But at the same time another way to transfer wealth from the South to the North to do, and it is by lowering commodity prices. Commodity prices produced by African people are now paid only half of what they get in 1979. Generally speaking, Africa has been subsidizing the North in the last 20 years to approach as much as $ 400 billion.
How North out of this hoax? There are two very important things: The first is the existence of the Bretton Woods institutions, the World Bank, and the IMF, which was first established in 1945 to help rebuild Europe after World War II. This institution has gained tremendous strength in poor countries and they have prevented the cancellation/cancellation of debts of poor countries because they were able to impose the terms, one of which is that you have to pay back the loans. So here the circulation of money is very large between North and South. This is a hoax perpetrated by the institution to impose a structural adjustment policy because they say that the aid would be conditional on the return of the loan and therefore the loans must always be paid. This mechanism makes these institutions have very strict controls.
Some countries, such as Nicaragua, Mozambique, and Angola, tried to burst out of it and they were beaten. During the cold war, the period has been able to impose its will-will on anyone who is not in line with the World Bank and the IMF and slaughtered as many as needed to be done to enforce that policy.
So the mix between economic policy and military policy has been able to ensure that poor people in the South and the poor in the North suffered from a panic period in 1979, and prevent crashes. For the capitalist class, this new system has gained remarkable success. For the first time, they naturally have delayed crashes for a period of at least 20 years. Some of the loans are used for development projects, but many of these loans in the 1970s and 1980s are the loans of the cold war - to raise Mobutu in Zaire, apartheid in South Africa, and others. This causes the (development of) a slogan in various campaigns in the South, that says, 'Can not pay, will not pay' (Can not pay, will not pay), and also, 'Dont owe, will not pay' (do not borrow, will not pay).
With respect to the jubilee in 2000 - said the jubilee is derived from the Biblical Old Testament where every 50 years you assumed to cancel/abolished all debts and free all slaves. Jubilee 2000 starts by saying let's make 2000 a jubilee year, and it started out as a church campaign. But this is in fact a radical demand because it challenges the whole basis of the international financial system. In the last two years, Jubilee 2000 was more widespread than the base of his home church. We are now given support by the trade unions - the TUC, TGWU, Unison, FBU, and many other organizations. Jubilee 2000 now exists in more than 50 countries and movements in the South are very radical. It's time to boost occurred on the Jubilee 2000 movement - of people in indebted countries. They not only direct the target to creditors such as the IMF but also talk about their elites, and said we should use anti-debt campaigns to mobilize our people, to urge our governments to be more transparent, to change the relationship between the country- our country.
Debt has been an issue for nearly 20 years but now suddenly debts become the agenda. Jubilee 2000 has succeeded at least to help it. We have changed the view of the world because we have a message that is simple and clear - debt is a justice issue and must be canceled in 2000. It is a fundamentally radical demand which challenged the entire international financial system. And this is with regard to strengthening the people to do the same.
