Black People : The IMF , and the extortion of Africa's resources

Discussion in 'Black People Open Forum' started by Putney Swope, Sep 17, 2009.

  1. Putney Swope

    Putney Swope Well-Known Member MEMBER

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    The World Bank and IMF in Africa
    Last updated June 2009

    The World Bank and International Monetary Fund (IMF) are two of the most powerful international financial institutions in the world. They are the major sources of lending to African countries, and use the loans they provide as leverage to prescribe policies and dictate major changes in the economies of these countries. The World Bank is the largest public development institution in the world, lending over $24 billion in 2007 of which over $5 billion (or 22 percent) went to Africa.

    The World Bank and IMF are controlled by the world's richest countries, particularly the U.S., which is the main shareholder in both institutions. The World Bank, headquartered in Washington, DC, follows a "one dollar, one vote" system whereby members with the greatest financial contributions have the greatest say in decision making. The U.S. holds roughly 17% of the vote in the World Bank and the 48 sub-Saharan African countries together have less than 9% of the votes. The Group of 7 rich countries (G-7) control 45% of World Bank votes. This system ensures that the World Bank and IMF act in the interest of the rich countries, promoting a model of economic growth (called neo-liberal) that benefits the richest countries and the international private sector.

    Over the past two decades, the poorest countries in the world have had to turn increasingly to the World Bank and IMF for financial assistance, because their impoverishment has made it impossible for them to borrow elsewhere. The World Bank and IMF attach strict conditions to their loans, which give them great control over borrower governments. On average, low-income countries are subject to as many as 67 conditions per World Bank loan. African countries, in need of new loans, have had no choice but to accept these conditions.

    The World Bank and IMF have forced African countries to adopt "structural adjustment programs" (SAP) and other measures which cut back government spending on basic services. They have required African governments to reduce trade barriers and open their markets, maintaining their economies as sources of cheap raw materials and cheap labor for multinational corporations.

    As a result of World Bank and IMF policies, average incomes in Africa have declined and the continent's poverty has increased. Africa's debt crisis has worsened over the past two decades, as the failure of World Bank and IMF intervention has left African countries more dependent than ever on new loans. These institutions have also undermined Africa's health through the policies they have imposed. Forced cutbacks in spending on health care and the privatization of basic services, have left Africa's people more vulnerable to HIV/AIDS and other diseases.

    The policies of the World Bank and IMF have come increasingly under fire for the negative impact they have had on African countries. But these institutions, and the U.S. and other wealthy countries that control them, refuse to address these concerns. Instead, they continue to use Africa's debt as leverage to maintain control over the economic policies of African countries. Even as Africa faces the worst health crisis in human history, these institutions insist that debt repayments take priority over spending on the fight against poverty and HIV/AIDS. African countries continue to spend up to five times more on debt servicing than on health care for their.....

    full article;
    http://www.africaaction.org/resources/issues/wbimf.php

    http://www.livevideo.com/video/soca...BEFF866054D/the-great-african-swindle-pt.aspx

    This is an interesting video of the dessimation of a rice growing village to a dust bowl, in Ghana,
    by IMF policies,
    left without running water or irrigation
     
  2. Putney Swope

    Putney Swope Well-Known Member MEMBER

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    and now

    the US is promoting these pirates
     
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