Committee for the Abolition of Illegitimate Debt

PUBLIC FORUM ON DEBT AND MIGRATION
Debt Chains and Displaced Lives: Confronting Financial Institutions’ Legacies in the Global South

Date and Venue:
Pilar Herrera Hall, Palma Hall, UP Diliman, Quezon City
1PM-5PM
Objectives:

• To analyze the historical roles of 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.
  
  , 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 and other institutions affecting the South entangled in indebtedness.
• To investigate the effects of debt-driven neoliberal economic policies on migration patterns.
• To propose alternative frameworks for debt cancellation or restructuring.
• To engage civil society, academia, and policymakers towards the development of equitable, just, and people-centered economic and migration policies.

Key Resource Person:

• Eric Toussaint, Ph.D. is a Belgian historian and political scientist who serves as the spokesperson for the Committee for the Abolition of Illegitimate Debt (CADTM)
• Mae Buenaventura, Asia People’s Movement on Debt and Development

with panel of discussant from

• The Philippines
• Pakistan
• India

and representatives from

• UP CIDS AltDev
• Center for Migration Advocacy
• Focus of the Global South

A Collaboration of:

• IIRE-Philippines
• UP CIDS AltDev Program on Alternative Development
• Center for Migrant Advocacy
• Focus on the Global South
• Freedom from Debt Coalition
• Sumpay Mindanao
• Kaagapay OFW Resource and Service Center
• Committee for the Abolition of Illegitimate Debt (CADTM)
• UP Department of Geography
• Asian People’s Movement on Debt and Development

PubMat by: UP CIDS AltDev