Committee for the Abolition of Illegitimate Debt

This short film illustrates how the repayment of public debt allows the Northern countries and private banks to perpetuate the colonial dynamic of plundering the resources of the South with the support of the International Monetary Fund 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 (IMF) and the 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.

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These debts were illegally transferred to the Southern countries by the colonising powers or were subsequently contracted by the dictatorial governments of these countries in order to consolidate their personal interests in defiance of those of the local populations. To ensure repayment of these debts, the countries of the South are forced to sell their resources (at the expense of food sovereignty, social rights and the environment) by orienting their economies towards exports and applying free trade. The IMF ensures that this mechanism is maintained through its “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/ plans” which lock these countries into a downward spiral of debt and austerity. In the end, it is the rich countries and the financial markets that benefit both from the interest Interest An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. on the debt repaid by the South and from the exported resources that feed their industries at low cost.

Since the financial crisis of 2008, the populations of the Northern countries, especially in Europe, have also suffered the destruction of social rights and public services under the pretext of repaying public debts in order to satisfy the appetite of the private markets.

It is time to destroy this infernal machine and bring down domination through debt. Throughout history, many governments, under pressure from the people, have refused to pay. To do so, they have been able to rely on international law and citizen audits of the debt. At a time when a new global debt crisis is looming, the people must take up this issue and question the payment of public debt.

[LET’S GET INFORMED, LET’S MOBILISE, AND LET’S JOIN THE INTERNATIONAL MOVEMENT FOR THE CANCELLATION OF ILLEGITIMATE DEBTS!]

[PLEASE SIGN THE PETITION ON : https://www.annulerladette.be/]

SYSTÅM DËBT - How to become a wealthy creditor
A VIDEO DIRECTED BY ZINTV

WRITTEN AND ANIMATED BY :
Pinpin
Thomas Michel
Gilles Grégoire
Renaud Vivien

VOICE OVER :
Noémie Maton

SOUND EDITING :
Nicolas Menoux

ACCESSORIES:
Corentin, Nico, Thomas, Sarah, J-F Roversi, Mathieu & Audrey

ENDING MUSIC :
Eva LG & GiGr – Biche Bloc © L’Aubaine Records, 2019

COMMUNICATION AND DIFFUSION :
Anne-Sophie Guillaume
Beatriz Ortiz Martínez
Chloé Martens

TRANSLATION :
Beatriz Ortiz Martínez
Katelijne Suetens
Mélissa Baleka Da Silva

PROOFREADING AND SUPPORT :
Anaïs Carton
Brigitte Ponet
Eva Betavatzi
Laurenne Makubikua
Rémi Vilain
Romain Posocco
Soléanne Despretz-henrion
And members of ZinTV, E&F and CADTM

A ZINTV, ENTRAIDE & FRATERNITÉ, CADTM PRODUCTION
LICENSE CC-BY-NC-SA 4.0