Committee for the Abolition of Illegitimate Debt

It is crucial to understand that the coronavirus is not a ‘natural disaster’ as often claimed. It is the outcome of human actions which have created a system of agriculture which subordinates animal and human welfare to profit Profit The positive gain yielded from a company’s activity. Net profit is profit after tax. Distributable profit is the part of the net profit which can be distributed to the shareholders. . The Covid-19 pandemic reminds us that our current food system is unsafe as well as unjust and unsustainable. It is unsafe because it involves massive ecosystem disruption which causes pandemics and new pathogens.

The most obvious example of such disruption is the destruction of habitats for mono-crop production. Scientists have established that excessive habitat destruction (especially deforestation) is driving a massive extinction in which three quarters of different species of life will disappear. Furthermore, it is clear that climate change driven by human production of fossil, fuels makes pandemics more likely.

Capitalist globalization implanted within the legacy of colonialism, neo colonialism and elite driven cronyism has locked Southern Africa into a multi-dimensional economic, social and ecological crisis and has rendered the region ripe for another social catastrophe. The Covid-19 pandemic is that long predicted catastrophe. The impact of this on women, as the primary 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. givers needs to be highlighted and rural women in particular.

Causes for concern

SAPSN is greatly concerned with the dire state of the region’s health system. Although uneven across the region, the public health systems cannot cope with the current burden of disease. State coffers in most parts of the region are in deep crisis with government budgets unable to meet existing challenges and completely dependent on donor aid. We have already seen the failure to deal with several cholera outbreaks, Ebola, which struck the Democratic Republic of Congo and other countries in Central Africa, showing the incapacity of the governments to deal with crises of such magnitude.

The public health system, on which the majority depend, is on its knees. Zimbabwe has only a combined 20 ventilators across both private and public health sectors. Malawi has about 25 ICU beds for a population of 17 million people. In 2001, in Mozambique, there were just 2.4 doctors and 20.5 nurses per 100,000 population. Swaziland has no laboratory to process tests for Covid-19. And in South Africa, while one doctor sees 2,457 people in the public health facilities, the estimated ratio of doctors to people in private health is 1 to 429.

The state of health in Southern Africa is rooted in the region’s history of underdevelopment and domination. 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/ Programmes imposed by 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.

eroded the initial post-independence gains in building a public health system responsive to the needs of the majority. In the face of harsh economic conditions, health budgets and the budgets critical to the social determinants of health were cut, as governments adopted neoliberal programmes of austerity.

The precarious state of health in Southern Africa, like most parts of Africa is also rooted in the system of patriarchy which has given rise to an extensive and informalised system of care weighing on the shoulders of women. This manifests in different forms, including health care provided for the sick, elderly and children by women at home; unpaid community health work and in some instances women health practitioners are working for very low wages without decent benefits. These women will be at the frontline of dealing with the pandemic and the intensification of the worsening condition for social reproduction and gender based violence.

SAPSN strongly feels the Extra-Ordinary Meeting of SADC Ministers of Health, which took place on 9 March 2020 is a totally inadequate response to deal with the current crisis as it fails put in place practical measures to ensure that every country can intensify testing as well as ensuring that the region secures adequate health equipment, medicines, protective clothes and sanitizing materials.

What must be done

The impact of the Covid-19 pandemic has provoked a new global recession which is plunging economies around the world into crisis. For an export, heavily indebted and aid dependent Southern Africa the looming crisis will destroy livelihoods and further cripple already ailing SADC economies. The economic dimensions of this crisis require a comprehensive emergency response by SADC. We need, now more than ever, a regional response as opposed to countries responding in isolation because the virus knows no border and its implications are of a transboundary nature.

The threat posed by Covid-19 cannot be treated solely as a health risk but must be seen as a threat to the overall development of Southern Africa.

In this regard we are calling on SADC governments to implement a debt moratorium and divert resources meant for debt repayments towards rebuilding the public health system and investing in critical social service sectors including energy, water, sanitation and housing infrastructure to build the resilience of SADC people to withstand the impact of the crisis.

SADC, like many corporations must declare force majeure, i.e. the existence of unforeseeable circumstances which make it impossible to fulfil the terms of trade and investment agreements that stand in the way of local production of vital health equipment, medicines and other inputs necessary to address the pandemic. SADC cannot continue to be bound by the Trade-Related Aspects of Intellectual Property Rights (TRIPS) and Trade-Related Investment Measures (TRIMS) embedded in various trade regimes such as in the World Trade Organisation WTO
World Trade Organisation The WTO, founded on 1^st January 1995, replaced the General Agreement on Trade and Tariffs (GATT). The main innovation is that the WTO enjoys the status of an international organization. Its role is to ensure that no member States adopt any kind of protectionism whatsoever, in order to accelerate the liberalization global trading and to facilitate the strategies of the multinationals. It has an international court (the Dispute Settlement Body) which judges any alleged violations of its founding text drawn up in Marrakesh.

(WTO) and the Economic Partnership Agreements (EPAs)

Whilst SAPSN agrees that every effort must be directed towards flattening the curve of the spread of Covid-19, primarily through social distancing, exercising personal hygiene, we strongly believe imposing lockdowns without addressing the social welfare of workers and citizens is disastrous. Furthermore, social (physical) distancing during lockdown is difficult to exercise in the region’s populous high density suburbs. Again, implementing lockdowns without vigorous awareness raising amongst citizens is likely to cause violent confrontations between citizens and security forces. In any case, lockdowns must not be militarised and must be undertaken with the support ordinary citizens.

SAPSN calls for SADC to urgently put in place a regional emergency fund towards social relief and ensure the provision of medical equipment, medicines and protective clothing for health officials and take care of workers affected by the lockdowns through the implementation of a regional income grant.

SADC must urgently increase subsidies and support for small-scale farmers producing food crops Food crops Crops destined to feed local populations (millet, manioc, etc.), as opposed to cash crops, destined for export (coffee, cocoa, tea, groundnuts, sugar, etc.) . Small-scale producers must be integrated into the mainstream food supply chains to ensure regional food security.

SAPSN calls on the peoples of Southern Africa, including faith based organisations, trade unions, peasant formations, women’s’ movements, land rights movements, social movements and progressive NGOs to unite and stand in solidarity in the face of the new threat we face from the Covid-19 pandemic.

We must stand in the frontlines bringing awareness of the threats posed by the Covid-19 pandemic and what can be done to minimize the risk of contracting the virus. We must go to the people, by whatever way possible to bring relief. We must reject all forms of discrimination and stigma. We must redouble our efforts to fight racism, xenophobia and sexism.

And, most importantly, we must rebuild our movements to fight for a Southern Africa free of inequality, disease, hunger and homelessness.

Southern African People’s Solidarity Network Secretariat
C/O Zimbabwe Coalition on Debt and Development (ZIMCODD)
No 9 Bargate Road, Mount Pleasant, Harare, Zimbabwe
Tel: +263 242 776 830-1
Website: www.sapsn.org
Email: sapsn at zimcodd.co.zw
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