Committee for the Abolition of Illegitimate Debt

The forum was a space for truth-telling and solidarity

Eric Toussaint of CADTM opened the event with a keynote that pulled no punches: for decades, 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 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.

have propped up dictatorships, imposed harsh neoliberal reforms, and forced countries into cycles of debt that benefit elites while communities suffer. He explained how their policies have led to widespread poverty, the collapse of public services, the destruction of ecosystems, and the mass migration of workers, often under dangerous and exploitative conditions. CADTM’s stance was clear: these institutions aren’t broken; they were built this way. And it’s time to replace them with democratic, people-centered financial systems rooted in justice, equity Equity The capital put into an enterprise by the shareholders. Not to be confused with ’hard capital’ or ’unsecured debt’. , and sustainability.

The perspectives that followed grounded this critique in lived reality. Mae Buenaventura from APMMD shared how the debt crisis in South Asia is not just about numbers on a spreadsheet—it’s about survival. From the pandemic to climate disasters to inflation Inflation The cumulated rise of prices as a whole (e.g. a rise in the price of petroleum, eventually leading to a rise in salaries, then to the rise of other prices, etc.). Inflation implies a fall in the value of money since, as time goes by, larger sums are required to purchase particular items. This is the reason why corporate-driven policies seek to keep inflation down. , people are bearing the brunt of overlapping crises, while governments are buried under soaring debt payments. In 2023 alone, 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. payments in the region jumped 62%, eating away at already limited budgets for healthcare, education, and basic services.

Across the forum, speakers from the Philippines, Bangladesh, Pakistan, and India established a collective awareness of the harm: Rovik Obanil from the Freedom from Debt Coalition traced how the Philippines’ debt spiral began under Marcos and continues today through privatization and regressive taxes. Atty. Tahrin Jerin from Bangladesh exposed how borrowing happens without public consent, pushing women into vulnerable overseas work. Aminah Waheed from Pakistan highlighted how IMF-imposed cuts have fueled land grabs, displacement, and poverty. Sushovan Dhar from India warned that even progressive forces are hesitant to question the debt-driven development model.

From the Philippines, Dr. Ed Tadem called out the country’s unique policy of “automatic debt appropriation,” », which prioritizes debt payments over people’s needs, and proposed alternatives like a wealth tax. Center for Migrant Advocacy’s Irynn Abano reminded everyone that the Philippines’ labor export policy dates back to the Marcos era. He emphasized that relying on Overseas Filipino Worker (OFW) remittances to support the economy results in family separation, insecurity, and injustice.

But it wasn’t all critique—there was also a talk about grassroots alternatives to free small communities from debt chains. Bianca Martinez from Focus on the Global South spotlighted local alternatives already being practiced: community-run seed saving, agroecology, self-managed loan systems, and food sovereignty projects. These are living proof that another path is possible, one built on solidarity, care, and self-determination.

Throughout the forum, one message rang clear: debt is not just a financial issue—it’s a chain that binds communities, uproots lives, and deepens inequality; debt, migration, and inequality are political questions and shall not be forgotten; and debt has become a tool for domination. But through collective action, courageous truth-telling, and people-led alternatives, there are ways to break free.

The forum ended not just with a sense of outrage but with a renewed call to action: to resist, to imagine, and to build a world where no one is entangled in debt, forced to migrate, and dying to survive.