Open letter to the Presidents of Argentina, Bolivia, Brazil, Ecuador, Paraguay, and Venezuela

26 June 2007


FOR A SOUTH BANK IN ACCORDANCE WITH PEOPLES’ RIGHTS, NEEDS, POTENTIALITIES AND DEMOCRATIC VOCATION

Dear Sirs,

The undersigned networks, organizations, and social movements, actively engaged in the struggle against the tragedy of the external debt and the perverse policies and practices of he existing international financial institutions, are writing to you in the understanding that the decision of your governments to create the South Bank can mean an enormous step and opportunity for Latin America and the Caribbean as well as for other regions of the South.

Over recent decades the region has experienced repeated cycles of financial peaks followed by disasters that have deeply marked the involution of living and working conditions and of public and social expenditures.

It is not enough to redress the negative consequences of our recent history which are well known; it is necessary as well to generate an alternative regional financial system that is consistent with the need to give absolute priority to the overcoming of the poverty, marginality and structural underdevelopment caused by the huge public and social costs of the financial disasters, the policies of deregulation and privatization promoted and conditioned by the lending institutions, and the growth of a gigantic illegitimate debt.

It is evident that the existing international financial bodies - 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
, WB 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.

, IDB - have become more and more discredited for the nature of their policies, their anti-democratic character, and the lack of transparency of their actions, to the point that not only are their results questioned, but also the very architecture of the current financial and monetary system.

We believe that the South Bank must be part of a unitary regional response, together with the founding of a South stabilization fund, a common regional currency, the undertaking of audits of internal and external debt claims, and the non-payment of those debts illegitimately demanded of our countries. A response that contributes to the cutting the ties of dependency with uncertain and highly speculative global capital markets, enabling the region to channel its own savings power, stop capital flight, and invest its resources in accordance with the social and economic needs of the people.

The sole formulation of the need for an autonomous financial institution is not enough even if it is very important. The debate on the implementation of an autonomous South-South bank is of utmost importance, and for that reason we support the demand of many organizations and movements in the region, that national and regional instances be created immediately in order to insure the necessary information, participation, and consultation with the organizations in societies which will be affected by the creation of the South Bank.

At the same time, and at the current instance of definitions, we think that it is essential that the South Bank start out with clear definitions regarding its resources, objectives, organization, regulations, decision-making, management, and operations, in such a way that:

  1. It defines as its central goal the promotion of the member countries’ and the region’s own development with sovereignty and in solidarity. Development defined as the unfolding of the attributes, resources, and potential of persons, communities and peoples; a process that cannot take place without their being the principal protagonists.
  2. It constitutes its capital and management structure in an egalitarian way among the member countries.
  3. It clearly defines that credit allocations will be for the strengthening of the public and social sector; giving priority to the redistribution of wealth and to environmental protection; contributing to the overcoming of existing asymmetries; and responsive to peoples’ lives and welfare, for their economic, social, cultural, and environmental rights and for their right to their own development and self-determination. For this reason we propose that the South Bank direct its financing to socially and environmentally sustainable projects and do not use them to fund IIRSA and other mega projects, as well as extractive, contaminating or socially exclusive investments that do not rely on the agreement and do not benefit the affected populations.
  4. It explicitly establishes open mechanisms for public information and control, establishing that the bank’s officials and employees will have no personal immunity or fiscal privileges, that the rendering of accounts will be made known and put to the consideration of Parliaments and of civil society, and that all information shall be considered public.
    We believe that all of the above is in keeping with the Ministers’ Statement of Quito, May 3rd, 2007, where it points out: “The people have given their governments a mandate to provide the region with new instruments of integration for development that must be based on democratic, transparent, and participatory schemes that are responsible to their constituencies.”

The current regional and international economic and financial situation is favourable to take concrete steps in this direction, but it may not last. We hope that this historic possibility is put to use in order to create a truly Peoples’ South Bank.

Sincerely,

SIGNATURES :

OrganisationCountry / locality
Agrupación Mate Amargo de Entre Ríos Argentina
Asociacion Internauta, Usuarios de Internet de la Republica Argentina Argentina
ATTAC - Argentina Argentina
Autoconvocados/as por los DDHH Argentina
CTA Flores Auténtica Argentina
Diálogo 2000 Argentina
Espacio Ecuménico Argentina
Federación de Trabajadores de la Energía de la Rep. Argentina (FETERA), Sec. Organización Argentina
Foro Ciudadano de Participación por la Justicia y los Derechos Humanos (FOCO) Argentina
Iglesia Evangélica del Río de la Plata, Presidente y Secretario General Argentina
MOCASE Argentina
Movimiento Amigos por la Paz en Colombia y en el Mundo Argentina
Movimiento de Unidad Popular Argentina
Movimiento Oro Negro Argentina
Movimiento por la Paz, la Soberanía y la Solidaridad de los Pueblos MOPASSOL Argentina
Programa Argentina Sustentable (PAS) Argentina
Programa Latinoamericano de Educación a Distancia en Ciencias Sociales / PLED Argentina
Re-vista Argentina
Taller Ecologista Argentina, Rosario
Granja Agroecológia “La Verdecita”, colectivo de mujeres Argentina, Santa Fe
Federación Nacional de Docentes, Investigadores y Creadores Universitarios (CONADU HISTÓRICA)- CTA, Argentina
Jubilee Australia Australia
Coastal Association for Social Transformation (COAST) Bangladesh
Sushasoner Jonno Procharavizan (SUPRO) Bangladesh
CADTM Belgique Bélgica
Comité pour les droits humains “Daniel Gillard” Bélgica
Union de defensa de las personnas indocumentadas UDEP BXL Bélgica
Cercle d’Auto promotion pour le Développement Durable (CADD-Bénin ) Benín
Groupe de Recherche et d’Action pour la Promotion de l’Agriculture et du Développement (GRAPAD) Benín
Central Provincial Única de Trabajadores Campesinos de Antonio Quijarro Bolivia
COORDINACIÓN REGIONAL SUR PROGRAMA NINA Bolivia
Federación Regional Única de Trabajadores Campesinos del Altiplano Sur FRUTCAS Bolivia
Federación Sindical Únia de Mujeres Campesinas del Altiplano Sur FSUMCAS BS Bolivia
Associação Brasileira Interdisciplinar de AIDS (ABIA) Brasil
ATTAC-Brasil Brasil
Auditoria Cidadã da Dívida Brasil
Caritas Brasil
Consulta Popular do SC Brasil
Instituto Brasileiro de Inovações pró-Sociedade Saudável Centro-Oeste Brasil
Instituto Equit Brasil
Instituto Gaúcho de Estudos Ambientais Brasil
ISER Assessoria Brasil
Núcleo Amigos da Terra Brasil
PACS - Instituto Políticas Alternativas para el Cono Sur Brasil
REBRIP Rede Brasil pela Integraçao dos Povos Brasil
Rede Brasil sobre Instituições Financeiras Multilaterais Brasil
Rede Jubileu Sul contra o ALCA, la Dívida y la Militarizaçao Brasil
Rede Social de Justica e Direitos Humanos. Brasil
REMTE Brasil
Servicio Pastoral de los migrantes/CNBB Brasil
Sindicato dos Professores de Nova Friburgo e Regiäo Brasil
Sociedad Brasileña de Economia Política Brasil
AGAGES MANAGEMENT CONSULTANTS Camerún
Common Frontiers Canadá
Halifax Initiative Coalition Canadá
KAIROS Canadá
Comité logement d’aide aux locataires Canadá, Québec
Groupe de recherche et d’initiative pour la libération de l’afrique- GRILA Canadá, Québec
Réseau Quebeçoise pour la Integratión Continentale Canadá, Québec
ATTAC - Santiago de Chile Chile
Centro de Estudios Nacionales de Desarrollo Alternativo CENDA Chile
Coalición Ciudadana por Aysén Reserva de Vida. Chile
CORPORACIÓN FOTÓN COMUNICACCIÓN-ONG Colombia
ILSA - INSTITUTO LATINOAMERICANO DE SERVICIOS LEGALES ALTERNATIVO Colombia
Jubileo Sur Colombia Colombia
Marcha Mundial de las Mujeres Colombia Colombia
Mesa de Trabajo mujeres y economía Colombia
Movimiento Nacional por la Salud y la Seguridad Social de Colombia Colombia
Movimiento Popular de Mujeres - Colombia
Recalca Colombia
REMTE Colombia Colombia
Apash Congo, Brazzaville
Centre pour le Partenariat l’Appui et le Renforcement des Capacités/CEPAREC Congo, Brazzaville
Action mondiale pour le Sourire,l ’ Espoir et la Lumiere AMSEL Congo, rep. Dem.
Solidarite’ Agissante pour le Developpement Familial (SADF) Congo, Rep. Dem.
CADTM Lubumbashi Congo, Rep. Dem.
COORDINATION NATIONALE CAFEC Congo, Rep. Dem.
COORDINATION NATIONALE REPRONTIC Congo, Rep. Dem.
COORDINATION SOUS REGIONALE ACSIS AFRIQUE CENTRALE Congo, Rep. Dem.
NAD-CADTM RD Congo; Congo, Rep. Dem.
Asamblea Soberana de la Floresta Ecuador
ASOCIACION DE MUJERES NELA MARTÍNEZ Ecuador
Centro de Derechos Económicos y Sociales - CDES Ecuador
Colectivo Feminista Ecuador
Comité Permanente por la Defensa de los Derechos Humanos Ecuador
ECUARUNARI Confederación de los pueblos de la nacionalidad Kichwa del Ecuador Ecuador
Proyecto Comunitario Bastion Ecuador
Proyecto Peninsula de Santa Elena Ecuador
Red de Asambleas Territoriales de Quito Ecuador
50 Years Is Enough: U.S. Network for Global Economic Justice EE.UU.
Alianza por un Comercio Responsible (ART) EE.UU.
Arise for Social Justice EE.UU.
Development GAP EE.UU.
Foreign Policy In Focus EE.UU.
Globalhood EE.UU.
Maryknoll Office for Global Concerns EE.UU.
CIAO LANGUAGE SERVICES, EE.UU., LOS ANGELES, CALIFORNIA
Egyptian Association For Community Participation Enhancement EACPE Egipto
SINTI TECHAN Red de Acción Ciudadana frente al Comercio e Inversión El Salvador
Unidad Ecológica Salvadorena- UNES El Salvador
Instituto para la Producción e Investigación de la Agricultura Tropical (IPIAT) España
Instituto para la Producción e Investigación de la Agricultura Tropical(IPIAT) España
Movimiento por el Cambio España
Observatorio de la Deuda en la Globalización España
El Viejo Topo España, Barcelona
Fundació MÓN3 España, Barcelona
FREEDOM FROM DEBT COALITION-PHILIPPINES (FDC) Filipinas
Youth Against Debt Filipinas
Europe solidaire sans frontières (ESSF) France
ASSOCIATION FRANCE AMERIQUE LATINE Francia
CADTM France Francia
MESA GLOBAL DE GUATEMALA Guatemala
Centre du Commerce International pour le Développement (CECIDE) Guinea
CHANDEL "Organizacion Popular para Educacion Popular Haiti
Fundacion“Zanmi Timoun” Haiti
Plate-forme haïtienne de Plaidoyer pour un Développement Alternatif (PAPDA) Haiti
Transnational Institute (TNI), Holanda
Bloque Popular Honduras
COORDINADORA NACIONAL DE RESISTENCIA POPULAR Honduras
Organización Fraternal Negra Hondureña OFRANEH Honduras
ActionAid International - India, Shelters & Housing (Urban Poor/ Informal Sector) India
India Alliance for Child Rights India
MOSAIC Charter Trust of South Actors for International Coexistence. India
TransAsia Alliance of NGOs for Child Rights India
VAK India
Women’s Coalition for Peace and Development India
International NGO Forum on Indonesian Development (INFID) Indonesia
Alianza Internacional de Habitantes Internacional
Amigos de la Tierra Internacional. Internacional
Asociacion internacional de juristas democratas Internacional
Comité por la Abolición de la Deuda del Tercer Mundo (CADTM) Internacional
Jubileo Sur Internacional
Observatorio Internacional de la Deuda OID Internacional
Programa de Incidencia sobre Deuda Externa Ilegítima de la Federación Luterana Mundial Internacional
RED INTERNACIONAL DE GÉNERO Y COMÉRCIO (IGTN) Internacional
Centro investigacion y elaboracion para la democracia (CRED) Italia
Cittadini Dal Mondo Italia
Fondazione Neno Zanchetta Italia
Instituto de estudios juridicos internacionales del Consejo nacional de investigaciones Italia
Sud Pontino Social Forum Italia
ATTAC JAPAN Japon
Japan Asia Africa Latin America Solidarity Committee Japón
Economic & Social Rights Centre-Hakijamii Trust Kenia
Solidarity Africa Network Kenia
Union for protection of tenants “MakeDom” Macedonia, Skopje
Alliance contre la Pauvreté au Mali « AP/Mali » Mali
Association pour la Promotion de la Femme et de l’Enfant à Niamakoro Mali
Coalition des Alternatives Africaines Dette et Développement « CAD-Mali » Mali
Forum des Peuples Mali
GIP - Bio (Groupement Interprofessionnel Panafricain Agro écologie et de Commerce Equitable) Mali
Ligue pour la Justice, le Développement et les Droits de l’Homme (LJDH) Mali
RAE (Réseau Africain de l’Eau) Mali
Réseau pour le Développement Local et l’Auto promotion de la Femme , de l’Enfant et de la Famille « RDL/AFEF » Mali
ASASHA Marruecos
ASASHA Alhoceima Marruecos
ATTAC Morroco Marruecos
Centrale démocratique martiniquaise des travailleurs (CDMT) Martinica
BANMACONDO, Cooperativa de Fomento al Desarrollo México
Centro Operacional de Vivienda y Poblamiento, A. C México
Equipo Pueblo México
MOVIMIENTO MEXICANO DE AFECTADOS POR LAS PRESAS Y EN DEFENSA DE LOS RIOS (MAPDER) México
Red Mexicana de Acción frente al Libre Comercio (RMALC) México
EDUCACIÓN PARA LA PAZ, A.C. (EDUPAZ) México, Chiapas
OTROS MUNDOS, A.C. México, Chiapas
General Federation of Nepalese Trade Unions (GEFONT) Nepal
Rural Reconstruction Nepal
Movimiento Social Nicaraguense Otro Mundo es Posible Nicaragua
Réseau National Dette et Développement (RNDD) Niger
Community Action for Popular Participation Nigeria
Companheir@s da Fe das Americas Panamá
PAKISTAN FISHERFOLK FORUM [PFF] Paquistán
COORDINADORA NACIONAL DE ORGANIZACIONES DE MUJERES TRABAJADORAS RURALES E INDIGENAS - CONAMURI Paraguay
Sobrevivencia - FoE Paraguay
CENTRO DE ASESORIA LABORAL DEL PERU - CEDAL Perú
Grupo Red de Economía Solidaria del Perú - GRESP Perú
Red Jubileo Perú Perú
CIDAC - Centro de Informação e Documentação Amílcar Cabral, Portugal
sociofonia.org, associação para a informação por outros meios Portugal
Comité Pro Niñez Dominico-Haitiana Puerto Rico
Grito Excluídas/os de Puerto Rico Puerto Rico
Proyecto Caribeño de Justicia y Paz Puerto Rico
African Forum and Network on Debt and Development (AFRODAD) Regional-Africa
Réseau Ouest Africain Dette et Développement « ROAD » Regional-Africa
Southern Africa Peoples’ Solidarity Network (SAPSN) Regional-Africa
COORDINADORA ANDINA DE ORGANIZACIONES INDIGENAS CAO Regional-Americas
Alianza Social Continental Regional-Américas
Asociación Americana de Juristas (AAJ), Representacion ante los organismos de la ONU Regional-Américas
Asociacion Latinoamericana de Medicina Social - ALAMES Regional-Américas
ASOCIACION LATINOAMERICANA DE MICRO, PEQUEÑOS Y MEDIANOS EMPRESARIOS, A.C. ALAMPYME Regional-Américas
Comvergencia de Movimiento de los pueblos de las Americas, COMPA Regional-Américas
Consejo de Educacion de Adultos de America Latina CEAAL Regional-Américas
Consejo de Educacion de Adultos de America Latina CEAAL Regional-Américas
Grito dos Excluidos Continental Regional-Américas
Iniciativa Mercosur de la Plataforma Interamericana de Derechos Humanos, Democracia y Desarrollo (PIDHDD). Regional-Américas
JUBILEO SUR/Américas Regional-Américas
Justicia, Paz e Integridad de la Creación JUPIC Regional-Américas
OCLAE Regional-Américas
Red Latinoamericana Deuda, Desarrollo y Derechos-LATINDADD Regional-Américas
Sociedad de Economía Política Latinoamericana (SEPLA) Regional-Américas
Alternatives Asia Regional-Asia
JS Asia/Pacific Movement on Debt and Development (JS APMDD) Regional-Asia
South Asia Alliance for Poverty Eradication (SAAPE) Regional-Asia
Asamblea de los Pueblos del Caribe Regional-Caribe
KAIROS-Europa Regional-Europa
RED EUROPEA DE DIÁLOGO SOCIAL (REDS) Regional-Europa
Cultural Center 4 Audio Visual Exchange (CC4AVE) República Dominicana
Movimiento Popular Cristiano Oscar Arnulfo Romero, MOPAR República Dominicana
Partido Revolucionario Dominicano (P.R.D.), Dirección de Cultos República Dominicana
African Forum on Alternatives Sénégal
CADTM Sénégal Sénégal
Habitat Serbia
Asian Network for Culture and Development Sri Lanka
Umzabalazo we Jubilee. Sudafrica
CADTM Suisse, Suiza
Centro Europa-Tercer Mundo CETIM Suiza
Nord-Sud XXI Suiza
ATTAC-TOGO Togo
Friends of the Earth England, Wales and Northern Ireland UK
Jubilee Debt Campaign UK
Attac Jersey UK, Jersey, Channel Islands
Integración Sur - CLAES Uruguay
Plataforma DESCAM URUGUAY Uruguay
REDES - Amigos de la Tierra Uruguay Uruguay
Universidad Popular Joaquín Lencina Uruguay
ATTAC - Venezuela Venezuela
Coalicion de Tendencias Clasistas (CTC) Venezuela
Instituto para la Producción e Investigación de la Agricultura Tropical IPIAT Venezuela
O.C.V. Red Metropolitana de Inquilinos Poder Popular Venezuela
Red Venezolana Contra la Deuda (RVCD-CADTM) Venezuela
CONFELE
Congreso Bolivariano de los Pueblos
INSTITUTO DE INVESTIGACION FORMACION PARA EL MEDIO AMBIENTE Y EL DESAROLLO SOSTENIBLE(IRFEDD)

Personal signatures :

CountryName
Alemania Ulrich Duchrow, maestro e la Universidd de Heidelberg, Alemania
Argentina Adolfo Pérez Esquivel
Argentina Alejandro Cabrera Britos
Argentina Carina Maloberti
Argentina Carlos Loza
Argentina Carlos Pellegrini
Argentina Cristina Castello
Argentina Eduardo Espinoza
Argentina José Barbagallo
Argentina José Barbagallo
Argentina Marta Resnicof
Argentina. Paula Turi,
Bangladesh Abul Hossain
Bélgica Alma De Walsche, Mondiaal Magazine
Bélgica Joseph van Deberg,
Bélgica Paul BLANJEAN
Brasil Alfredo dos Santos
Brasil Ceci Juruá
Brasil Clayton Mendonça Cunha Filho
Brasil Dr. Clair da Flora Martins
Brasil Fernando Correa Prado
Brasil João Baptista de Figueiredo Neto
Brasil João Baptista de Figueiredo Neto
Brasil Marcio Pochmann
Brasil Marlene Soccas
Brasil Plinio Zaleski Vargas
Brasil, Curitiva - Paraná Zuleica Nycz
Camerún Julienne Ayissi, Coalition des Ong et des Ocb oeuvrant dans le Domaine des Etablissements Humains et de l’Habitat
Congo, Republique Democratique du SCHOMBE Baudouin, Centre africain d’echange culturel,
Ecuador Alberto Acosta
Ecuador Diana Isabel Echaiz
España juana font arellano
España Aleardo Laría
España Encarna Gama,
España Javier Martín Jaramillo
España Joaquín Contreras Rivera
España José Ignacio Hernando Piedra
España Juanjo Llorente, Movimiento por el Cambio
España Oscar Revilla Alguacil
España, Catalina Bover Nicolau, Mallorca Islas Baleares,
España, Córdoba David Luque Navarro
España, Granada Javier Martín Jaramillo
España, La Coruña Santiago Echave
España, Murcia Benigno Polo Costa
Francia M-N. Lombard , miembro ACAT-Francia
Italia Anna La Vista, Comitato di lotta centro storico Roma
Italia Alessandra Della Ragione
Italia Antonio Pacor
Italia Cesare Ottolini
Italia Lucia Salemi
Italia Patrizio Graziosi
Italia Simone
Kenia Mrs Edra Mbatha, Peoples Parliament in Kenya
México Laura Collin
México Raúl Villegas Dávalos
Mexico, Queretaro Eduardo Leon Chain, El Milagrito asociacion civil
Paraguay Guillermo F. Parodi
Regional-Américas Angel Luis Rivera
República Dominicana Pedro Franco,
Rusia, Moscú Carine Clement, Institute “Collective Action”
Suiza Madeleine Crisinel
Uruguay Gastón Casa Diamante
Aktham Naisse
Aleardo Laría
Alfredo Verre
Francisco Serrano Bermejo
Gennaro Varriale
José Ignacio Hernando Piedra
Marilina Marichal, Coordinadora Para Asentamientos Espontáneos Movimiento Sin Techo, Paraguay
Zita
Argentina, Buenos Aires Eduardo D. Polo
Sénegal Moushamadou Moustapha Sylla



Translation(s)

CADTM

COMMITTEE FOR THE ABOLITION OF ILLEGITIMATE DEBT

35 rue Fabry
4000 - Liège- Belgique

00324 226 62 85
info@cadtm.org

cadtm.org