Committee for the Abolition of Illegitimate Debt

King Felipe VI’s arrogant and colonialist behavior in not responding to Andrés Manuel López Obrador’s (AMLO) request to apologize to the indigenous peoples of Mexico for the atrocities committed during the colonization of this country and the rest of the continent is the reason for his absence. In response to the King’s arrogant imperialist silence, the Mexican government halted its diplomatic relations with the Spanish Kingdom in 2022.

The arrogant colonialist attitude of Felipe VI was also evident when he refused to stand up during the inauguration ceremony of President Gustavo Petro of Colombia before the transfer of the sword of the Liberator Simon Bolivar from the Palacio de Nariño to the venue of the ceremony or, also, when he displayed a cold attitude during the inauguration of President Luis Arce Catacora of Bolivia.

The snub of the new Mexican government towards King Felipe VI questions the submissive postures of the governments of the Latin American right wing, as well as the complacency of the Spanish “socialist” government towards an anachronistic and corrupt institution such as the Spanish monarchy.

Although the CADTM welcomes Dr. Claudia Sheinbaum’s position in condemning the colonial past of the Spanish monarchy and overcoming Latin American governments’ traditional submission to that institution, we are aware that we have yet to break with neocolonial institutions such as 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.

(WB) or 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), created 80 years ago after the signing of the Bretton Woods Agreements, intending to expand U.S. and “western” power in the post-war scenario.

Since then, they have persisted in serving patriarchal and racist capitalism, which is becoming increasingly concentrated, impoverishing people, and destroying nature and life through submission to foreign debt and free trade agreements that benefit transnational corporations.

Popular resistance must accompany measures such as the one we welcome today. We trust that the people of Our America (Nuestra América), with their struggles, mobilisations and organisation, will move towards their true and definitive emancipation.