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Book Details
Abstract
Using 50 questions and answers, this book explains the debt impasse for developing countries in a simple but precise manner. It details the roles of the various actors involved, the mesh in which indebted countries are caught, the possible scenarios for getting out of the impasse, and the various alternatives to future indebtedness. It also sets out the various arguments - moral, political, economic, legal and environmental - on which the case for a wholesale cancellation of developing countries‘ external debt rests. It replies to the range of possible objections and proposes new ways of financing development at both local and international level.
Damien Millet is a secretary general of The Committee for the Cancellation of Third World Debt (CADTM), a member of ATTAC in France, and a contributor to the journal Alternative.
Eric Toussaint is a historian and political scientist, president of CADTM, member of the International Council of the World Social Forum, and of the scientific committee of ATTAC in France.
'As this fine study demonstrates, lucidly and persuasively, the debt that is strangling much of the world is largely a "scam". In significant measure, it is an ideological fiction, devised in the service of wealth and power, with no legitimacy or moral force. With skill and precision, the authors unravel the layers of deceit and distortion that conceal the ugly reality, and provide an important tool for liberating the great mass of suffering people who are caught in these shackles. It is a very important achievement.'
Noam Chomsky
'The authors try to explain how the debt has come about. In detail, the roles of various players are discussed, as well as the mesh in which the developing countries are now caught and possible ways of escaping it.'
Development and Environment
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| Contents | v | ||
| Abbreviations | viii | ||
| Introduction | ix | ||
| ONE | The Third World in the context of globalization | 1 | ||
| Q1 What is meant by the Third World? | 1 | ||
| Q2 Are the living conditions of the poorest populations improving? | 5 | ||
| Q3 What are the different kinds of debt? | 12 | ||
| Q4 What impact does the external debt have on human development? | 14 | ||
| TWO | The origins of the developing countries’ (DCs’) debt | 19 | ||
| Q5 What were the main factors leading to the indebtedness of the DCs? | 19 | ||
| Q6 What is the geopolitical context of the over-indebtedness of the DCs? | 21 | ||
| Q7 Who were the actors in the indebtedness of the countries of the South | 23 | ||
| THREE | The debt crisis | 27 | ||
| Q8 How can the debt crisis be explained? | 27 | ||
| Q9 How has the external debt of the DCs evolved over the last thirty years? | 30 | ||
| Q10 How have the creditors responded to the debt crisis? | 34 | ||
| FOUR | Management of the debt crisis | 36 | ||
| Q11 Who is the main actor in the management of the debt crisis? | 36 | ||
| Q12 What does the IMF do? | 38 | ||
| Q13 How does the World Bank operate? | 46 | ||
| Q14 What is the logic behind the IMF’s and the World Bank’s economic policy? | 52 | ||
| Q15 What are the short-term or shock measures imposed by structural adjustment …? | 54 | ||
| Q16 What are the long-term or structural measures imposed by structural adjustment …? | 57 | ||
| Q17 What is the role of the Paris Club? | 66 | ||
| Q18 Are all the DCs in the same boat? | 70 | ||
| FIVE | Anatomy of the developing countries’ debt | 74 | ||
| Q19 What does the external debt of the DCs consist of? | 74 | ||
| Q20 Who are the main creditors of the different DCs? | 75 | ||
| Q21 How have the roles of the different creditors evolved over the last thirty years? | 79 | ||
| Q22 Do the DCs repay their debts? | 82 | ||
| Q23 How are the debt-related financial flows managed? | 85 | ||
| SIX | Ongoing moves to reduce the debt -burden | 88 | ||
| Q24 How did the debt-reduction initiative come about? | 88 | ||
| Q25 What is the Heavily Indebted Poor Countries (HIPC) initiative? | 89 | ||
| Q26 What are the results of the HIPC initiative? | 94 | ||
| Q27 What are the limitations of the HIPC initiative? | 96 | ||
| Q28 What is the New Partnership for African Development (NEPAD)? | 102 | ||
| Q29 What are vulture-funds? | 105 | ||
| SEVEN | Debt cancellation and suspensions of payment in the past | 108 | ||
| Q30 Have there ever been debt cancellations in the past? | 108 | ||
| Q31 Why do the governments of the South continue to repay the debt? | 114 | ||
| EIGHT | The case for cancelling the DCs’ debts | 117 | ||
| Q32 Will debt cancellation be enough to ensure the development of the DCs? | 117 | ||
| Q33 What are the moral arguments in favour of cancelling the DCs’ debts? | 118 | ||
| Q34 What are the political arguments in favour of cancelling the DCs’ debts? | 120 | ||
| Q35 What are the economic arguments in favour of cancelling the DCs’ debts? | 122 | ||
| Q36 What are the legal arguments in favour of cancelling the DCs’ debts? | 124 | ||
| Q37 What are the environmental arguments in favour of cancelling the DCs’ debts? | 127 | ||
| Q38 What are the religious arguments in favour of cancelling the DCs’ debts? | 130 | ||
| Q39 Who owes what to whom? | 133 | ||
| Q40 Should there be conditions attached to debt cancellation? | 135 | ||
| NINE | Issues raised by debt cancellation | 138 | ||
| Q41 If the creditors decided to cancel the debt, would it cause a global financial crisis? | 138 | ||
| Q42 Could cancelling the debt cause an impoverishment of the North, particularly for tax-payers? | 143 | ||
| Q43 How can alternative funding be found for the development of the DCs? | 146 | ||
| Q44 Won’t the dictatorial regimes currently in office benefit most from debt cancellation? | 151 | ||
| Q45 If and when the debt is cancelled, how can a new round of indebtedness be avoided? | 154 | ||
| Q46 Should recourse to borrowing be avoided at all costs? | 155 | ||
| Q47 Can the DCs’ external public debt be compared to the public debt of the North? | 156 | ||
| Q48 How can we achieve cancellation of the DCs’ debt …? | 159 | ||
| TEN | The international campaign for debt -cancellation | 164 | ||
| Q49 How did the international campaign for the cancellation of the debt start? | 164 | ||
| Q50 How was the CADTM founded? | 166 | ||
| Appendix: Lists of countries | 169 | ||
| 165 DCs (authors’ count) | 169 | ||
| Triad | 170 | ||
| 42 HIPCs | 170 | ||
| Glossary | 171 | ||
| Bibliography | 182 |