Showing posts with label IMF. Show all posts
Showing posts with label IMF. Show all posts

Tuesday, June 21, 2016

Unbiased pros and cons of EU membership 2 : Are the EU's actions towards Greece undemocratic? Would the UK leaving the EU help or harm Greeks?

Is the EU’s treatment of Greece democratic or not though? Unelected officials from the ‘Troika’ (European Commission, European Central Bank and International Monetary Fund) were sent to oversee Greek government departments’ spending , with the stipulation thatNo unilateral fiscal or other policy actions will be taken by the [Greek] authorities. All measures, legislative or otherwise, taken during the programme period, which may have an impact on banks’ operations, solvency, liquidity or asset quality should be taken in close consultation [with the troika]” (1)

The Greek electorate voted in a party – Syriza – whose manifesto included scrapping EU imposed austerity. Then they were told this would not change the agreements made with the Troika by previous Greek governments.

German and Hungarian government politicians argue that they were representing the electorate of their own countries who were paying for financial support to Greece.

The reality is a lot more complicated than that as Germany benefited most from a free trade zone and single currency with weaker economies like Greece.

Despite myths of Greeks being lazy and tax avoiders, they in fact worked longer average hours than any other country in Europe even before the crisis , with Germans working considerably less hours on average(2) – (3).

And tax avoidance by the very wealthy is hardly something unique to Greece with e.g Switzerland, Luzembourg and the British Channel Islands being notorious tax havens, and many British companies, banks and billionaires avoiding tax in tax havens.

Greeks also had the options of defaulting on their debts and dropping the Euro as a currency and going back to their own currency, so they could issue money themselves, rather than having to ask the European Central Bank to issue them with Euros.

The Syriza Finance minister Yanis Varoufakis favoured at the least threatening to do this, and if necessary, doing. However the Greek government did not do it as the majority of Greeks in polls were against it, fearing that if done during a crisis it would lead to more panic and hyper-inflation.

This is still an option for the Greek government though, if it believes the damage done by EU imposed austerity policies is so bad that the other risks couldn’t be worse.

What there can be no doubt about is that the refusal of the same 50% debt forgiveness that Greece approved for Germany after World War Two, and the austerity policies imposed on Greece are both unfair and completely counter-productive.

Severe austerity cuts on the scale imposed on Greece reduce the size of the economy as a whole by reducing demand for private sector goods and services, reduce growth, and so make paying off any of the debt impossible.

From 2008 on during protests and riots against austerity measures Greek riot police have killed dozens of protesters and rioters, starting with what seems to have been the unprovoked murder of a 15 year old boy by armed police in December 2008 (4).

The EU have demanded that Greece run a budget surplus of 3.5% of GDP by 2018, which is over five times as large as the largest budget surplus that Germany, the strongest economy in the EU has ever had, at 0.6% of GDP in 2015 (5) – (6).

Even the IMF – one part of the Troika – has now said this ridiculous and argues that debt forgiveness and a relaxation of austerity are required for Greece (7).

What they don’t say is that, as Syriza have pointed out, some of the 1 trillion euros of Quantitative Easing money which have been created by the European Central Bank to hand to private banks could be used to pay off much of Greece and Spain’s debt (8) – (9).

Some people would argue that the UK leaving the EU could lead to the collapse of the EU and that this would free Greece from EU austerity policies.

However some Greeks, like Yanis Varoufakis,  a leading critic of EU austerity policies, want the UK to stay in as an ally for reform , arguing that if the EU splits up the result will be chaos and panic, which will be even worse for Greece (10).

He has launched an EU wide movement for democracy and against austerity policies called Diem25.

And the majority of Greeks , while they are angry and unhappy at what the EU has imposed on them, believe they are not in a position to leave the EU or go back to their own currency at the moment.

(1) = Open Democracy 14 aug 2015 ‘Greece has become the EU’s third protectorate’, https://www.opendemocracy.net/can-europe-make-it/jan-zielonka/greece-has-become-eu%E2%80%99s-third-protectorate

(2) = BBC News 26 Feb 2012 ‘Are Greeks the hardest workers in Europe?’,
http://www.bbc.co.uk/news/magazine-17155304

(3) = OECD Stat Extracts ‘Average annual hours actually worked per worker’, http://stats.oecd.org/index.aspx?DataSetCode=ANHRS

(4) = BBC News 05 May 2010 ‘Three dead as Greece protest turns violent’,
http://news.bbc.co.uk/1/hi/8661385.stm

(5) = BBC News 22 Jun 2015 ‘Greece spells out terms for debt crisis 'breakthrough'’,
http://www.bbc.co.uk/news/world-europe-33228119 (scroll down to subheading  ‘Greece debt talks : main sticking points’ ‘EU officials say Greece has agreed to budget surplus targets of 1% of GDP this year, followed by 2% in 2016 and 3.5% by 2018; Greece says nothing is agreed until everything is agreed’ )

(6) = AFP 23 Feb 2016 ‘Germany notches up record budget surplus in 2015: stats office’, http://www.newvision.co.ug/new_vision/news/1417803/germany-notches-record-budget-surplus-2015-stats-office

(7) = www.guardian.co.uk 23 May 2016 ‘IMF tells EU it must give Greece unconditional debt relief’, https://www.theguardian.com/business/2016/may/23/imf-warns-eu-bailout-greece-debt-relief

(8) = Greek Reporter 28 Jan 2015 ‘Greece: This is SYRIZA’s New Government Plan in Detail - See more at: http://greece.greekreporter.com/2015/01/28/greece-this-is-syrizas-new-government-plan-in-detail/#sthash.ahNA2k1R.dpuf’, http://greece.greekreporter.com/2015/01/28/greece-this-is-syrizas-new-government-plan-in-detail/

(9) = BBC News 22 Jan 2015 ‘ECB unveils massive QE boost for eurozone’, http://www.bbc.co.uk/news/business-30933515

(10) = www.guardian.com 05 Apr 2016 ‘Yanis Varoufakis: Why we must save the EU’,
https://www.theguardian.com/world/2016/apr/05/yanis-varoufakis-why-we-must-save-the-eu

Tuesday, May 29, 2012

IMF Director Christine Lagarde orders Greeks to pay their taxes while doing nothing to close down tax havens either as French Finance Minister or head of the IMF

IMF head Christine LaGarde's orders to Greeks to do their duty and pay their taxes ring pretty hollow coming from a woman who is the former French Finance minister. In that role she did pretty much nothing to close down tax havens in the EU (Switzerland, the Channel Islands, etc) or former French or British colonies and dependencies; and as head of the IMF she has done pretty much nothing in that regard either. Unless she's willing to close down the tax havens to stop the wealthiest and big banks and firms from avoiding tax, she has no leg to stand on in telling ordinary Greeks to pay theirs. Most of them already do. (1)

(1) = Guardian.co.uk 28 May 2012 'Christine Lagarde's Greek comments provoke fury', http://www.guardian.co.uk/world/2012/may/28/christine-lagarde-greek-comments-fury

Wednesday, June 29, 2011

Private creditors and banks' refusal to write down Greek debts likely to lead to Argentina style default

The Guardian has reported that German Chancellor Angela Merkel tried to get Greece’s private sector creditors, including the banks, to forgive some of Greece’s debts to them as part of a bail-out package for the Greek government. Some IMF and other economists argued for the same thing (1) – (2). The banks and other private creditors refused (3).

If they continue in their greed in refusing to give up any of the money owed to them Greece will most likely default on it’s debts and they will get not one penny.

French President Nicholas Sarkozy has claimed that leaving the Euro is not an option for either France or Greece as if they did their debts would still be denominated in Euros, the Greek and French currency would be worth far less than 1 euro per unit of currency and so their debt would effectively increase (4).

However if Greece has defaulted on all it’s debts this would not be a problem for them. It might affect their balance of payments negatively (i.e increase the value of what they import compared to what they export) but compared to the harsh conditions set for bail-out and the massive size of Greece’s debts this might seem like a minor problem.

The IMF and Greece’s governmental creditors in the EU have set the usual conditions of privatisation of public services and assets, sacking of public sector employees and cuts in welfare payments (5).

The privatisations demanded include the privatisation of water, which will price many of the poorest out of being able to afford water at all. Privatisation of water supplies led to cholera epidemics when it was done in South Africa as many people couldn’t afford piped water any more; and to riots in Cochabamba in Bolivia after the foreign water firms who bought up Bolivian water infrastructure started charging for the entire cost of new investments by raising prices in advance to cover the whole cost of major investments up front (6)  - (9).

They also include electricity (10). This would remove the revenues of one of the few public services that could turn a profit from government.

If the Greek government agrees to all this the likelihood is that the country will be tipped into a second even worse ‘double dip’ recession. Given that and massive public opposition to the rescue package conditions, since most Greeks don’t see why they should pay for the decisions of bankers and politicians who caused the crisis through lobbying for and implementing deregulation of the financial sector across most of the developed world, it seems likely the Greek government will either have to default, partially or entirely, on it’s debts, or else it will fall and whatever government replaces it will be forced to.

The IMF and EU conditions on the bail out are not addressing the main cause of Greece's debts either. This is tax avoidance through corruption. Many people and companies who can afford to, bribe officials or politicians to allow them to evade taxes altogether, resulting in the gap between tax revenues and government expenditure and placing the tax burden on those who can least afford it - the people and small businesses who can't afford to pay bribes (along with those who could but decide it would be wrong to) (11).

Defaulting on a large percentage of their other foreign debts did not work out badly for Argentina, in fact leading to it finally getting out of a situation of mass unemployment and massive debt. The debt default and repudiation of IMF conditions was followed by rapid growth which was interrupted briefly in 2009 by a recession caused by the global financial crisis, followed by more rapid growth. (The table on this link shows Argentina’s growth rate since 2002 if you change the start year to 2002.)   (12) – (14).

 Argentina did have help from Venezuela’s government, which had a surplus when oil prices were high due to the Iraq and Afghanistan wars and tension over whether there’d be war with Iran. Venezuela funded Argentina paying off it’s debts to the IMF. Foreign creditors were then forced to accept 25% of the money initially owed to them (15) – (16).

As a result last year Argentina was  able to pay off  it’s debts at a rate equivalent to creditors getting 51% of what was initially owed to them despite suffering a recession due to the global financial crisis and having to default on debt payments again in 2009 (17) – (18).

Development economist Ha Joon Chang has pointed out that many developing countries have defaulted on their debts without disaster ensuing in the past and they were rapidly able to get new loans from new investors (19).

The IMF is usually far more concerned with what is good for foreign creditors than what’s good for the people of countries it’s imposing conditions on for loans and grants, because it’s funded by the richest countries and they appoint it’s head.

 


(1) = guardian.co.uk 17 Jun 2011 ‘Germany climbs down over Greece bailout demands’,http://www.guardian.co.uk/world/2011/jun/17/greece-bailout-germany-private-banks

(2) = guardian.co.uk 03 Jun 2011 ‘Anger mounts in Greece as eurozone ministers edge nearer to bailout deal’,http://www.guardian.co.uk/business/2011/jun/03/greece-debt-crisis-second-bailout-talks

(3) = See (1) above

(4) = EU business 27 Jun 2011 ‘Sarkozy says France will propose new plan to aid Greece’, http://www.reuters.com/video/2011/06/27/greece-debates-new-austerity-plan?videoId=216516632

(5) = Reuters 14 May 2011 ‘http://ad-emea.doubleclick.net/ad/N4022.reuters.uk.mcfr/B5526334;sz=1x1;kw=gary;ord=5676326065615506?EU,IMF pushing Greece to fully privatise utilities – reports’,http://www.reuters.com/article/2011/05/14/greece-economy-idUSLDE74D02920110514

(6) = See (5) above

(7) = J. Pauw (2003)‘The politics of underdevelopment: metered to death-how a water experiment caused riots and a cholera epidemic’ in  Int J Health Serv. 2003;33(4):819-30. http://www.ncbi.nlm.nih.gov/pubmed/14758861

(8) = Water Justice 19 Oct 2004 ‘The UK Government and Water Privatisation’,http://www.waterjustice.org/analysis.php?componentID=2&articleID=83

(9) = The Nation 28 Jan 2005 ‘The Politics of Water in Bolivia’,  http://www.thenation.com/article/politics-water-bolivia

(10) = See (5) above

(11) = BBC Radio 4, 11 Feb 2010 'From Our Own Correspondent - No Tax Please we're Greek', http://news.bbc.co.uk/1/hi/programmes/from_our_own_correspondent/8509244.stm

(12) = BBC News 21 Nov 2002 ‘Crisis-hit Argentina defaults on debt’, http://news.bbc.co.uk/1/hi/business/2471617.stm

(13) = Guardian 02 Apr 2009 ‘Argentina heads for return of debt default that 'left it out of the world' seven years ago’, http://www.guardian.co.uk/world/2009/apr/02/argentina-debts-economic-crisis

(14) = Trading Economics -  ‘Argentina GDP Growth rate’, http://www.tradingeconomics.com/argentina/gdp-growth

(15) = guardian.co.uk 19 Dec 2005 ‘Goodbye and Good Riddance’,http://www.guardian.co.uk/business/2005/dec/19/argentina.internationalnews

(16) = See (11) above

(17) = Guardian.co.uk 16 Apr 2010 ‘Argentina to repay 2001 debt as Greece struggles to avoid default’,http://www.guardian.co.uk/business/2010/apr/16/argentina-to-repay-2001-debt

(18) = See (12) above

(19) = Ha Joon Chang (2010) ‘23 Things they don’t tell you about capitalism’, Allen Lane, 2010

Sunday, February 20, 2011

The demonstrations across the Middle East and North Africa have been as much about jobs and pay as democracy from the start

While most of the focus has been on demands for political democracy the protests across the Middle East and North Africa have been as much against unemployment, for jobs and for higher pay from the start. For instance in early January the BBC reported ‘The number of people killed in unrest over unemployment in Tunisia over the weekend has risen to 14, officials say…. The protests first broke out in December over a lack of freedom and jobs.’ (1)

The Tunisan man whose suicide by setting himself on fire set off the protests came from a family whose farm land had been taken by a bank after it foreclosed on the families debts. (2)

In Egypt at the end of January they reported ‘At least eight people have been killed and dozens injured since the protests against unemployment, corruption and rising prices began on Tuesday.’ (3)

This is not surprising as political and economic equality go hand in hand – and similarly for political and economic inequality. Having a job does you little good if you are jailed without fair trial, tortured or shot; while having the right to vote is not much good if you’re homeless or struggling to make enough money to be able to afford to eat.

In every case the global recession caused by the financial crisis and corrupt and brutally oppressive undemocratic governments have played a part. In most (e.g Egypt and Tunisia) neo-liberal economic policies promoted by the IMF and ‘developed world’ governments have also played a role. Even while these policies were creating economic growth poverty was increasing and unemployment wasn’t falling. With the recession, both rocketed.

In Egypt Amnesty international reported that as the clean up of Tahrir Square began “In hospitals, banks and insurance companies, employees gathered to demand better pay and working conditions.”  Protesters for higher pay include everyone from public sector employees such as ambulance drivers to tourism workers (4) – (5). Mubarak followed neo-liberal economic policies recommended by the IMF. While this resulted in economic growth,  the benefits went to a small minority. Mubarak’s family has an estimated fortune of $70 billion, another thousand families who are close to Mubarak benefited greatly and unemployment fell, more than half the population lives on less than £1 a day and there are a million homeless street children in Egyptian cities (6) – (10).

Trade unions have also been important in many cases. In Egypt it was the General Strike called by trade unions that seemed to tip the military into finally forcing Mubarak to resign (11).

(sorry for repeating some of one of my previous posts on Egypt here but i thought it justified a post of it's own on how from the start of the protests in Tunisia on, jobs, pay and unemployment have been core issues)

Last updated 1st March 2010


(1) = BBC 10 Jan 2011 ‘Fourteen killed in Tunisia unemployment protests’,http://www.bbc.co.uk/news/world-africa-12144906

(2) = Independent 21 Jan 2011 'Tunisia: 'I have lost my son, but I am proud of what he did'', http://www.independent.co.uk/news/world/africa/tunisia-i-have-lost-my-son-but-i-am-proud-of-what-he-did-2190331.html

(3) = BBC 28 Jan 2011 ‘Egypt protests escalate in Cairo, Suez and other cities’, http://www.bbc.co.uk/news/world-middle-east-12303564

(4) = Amnesty Livewire 14 Feb 2011 ‘The new face of Egypt’,http://livewire.amnesty.org/2011/02/14/the-new-face-of-egypt/

(5) = BBC News 14 Feb 2011 ‘Egypt crisis: Protests switch to demands on pay’, http://www.bbc.co.uk/news/world-middle-east-12448413

(6) = IMF Survey Magazine 13 Feb 2008 ‘Egypt: Reforms Trigger Economic Gr
owth’,http://www.imf.org/external/pubs/ft/survey/so/2008/car021308a.htm

(7) = guardian.co.uk 04 Feb 2011 ‘Mubarak family fortune could reach $70bn, say experts’,http://www.guardian.co.uk/world/2011/feb/04/hosni-mubarak-family-fortune

(8) = guardian.co.uk 06 Feb 2011 ‘A private estate called Egypt’, by Professor Salwa Ismail, London School of Economics,  http://www.guardian.co.uk/commentisfree/2011/feb/06/private-estate-egypt-mubarak-cronies

(9) = guardian.co.uk 14 Feb 2011 ‘Egypt's army calls for end to strikes as workers grow in confidence’,http://www.guardian.co.uk/world/2011/feb/14/egypt-army-strikes-workers

(10) = UNICEF ‘A new approach to Egypt’s street children’,http://www.unicef.org/infobycountry/egypt_30616.html

(11) = Guardian.co.uk 09 Feb 2011 ‘Egyptian talks near collapse as unions back protests’,http://www.guardian.co.uk/world/2011/feb/09/egypt-protest-talks-union-mubarak

Tuesday, February 15, 2011

Will Egyptian soldiers blindly obey the orders of dictators? Or defend democracy and people they joined the army to protect?

The euphoria in Egypt over Mubarak’s resignation is justified as a first step, but so far, while the dictator is gone, the dictatorship remains, under either Mubarak’s appointee and secret police chief Omar Suleiman, or General Tantawi, or Prime Minister Ahmed Shafiq (another Mubarak appointee). Any elections organised by them are not guaranteed to be any fairer than the rigged shams they helped organised for Mubarak, though it seems all opposition parties will be legalised and permitted to take part this time (1) – (2).

While it originally seemed the military had seized power under the ‘High Council of the Armed Forces’ and that they might soon hand over power to the pro-democracy parties in the government of National Unity the protesters have demanded, it’s become clear this will not happen unless there is another round of confrontation between the regime and the protesters. The general strike by Egyptian trade unions, which brought Egypt’s economy to a standstill, was what finally got the military to oust Mubarak (3).

The protests continue to be as much about inequality and poverty for the majority (made worse by the global recession) as they are about democracy and civil rights. Amnesty international reported that as the clean up of Tahrir Square began “In hospitals, banks and insurance companies, employees gathered to demand better pay and working conditions.”  Protesters for higher pay include everyone from public sector employees such as ambulance drivers to tourism workers (4) – (5). Mubarak followed neo-liberal economic policies recommended by the IMF. While this resulted in economic growth,  the benefits went to a small minority. Mubarak’s family has an estimated fortune of $70 billion, another thousand families who are close to Mubarak benefited greatly and unemployment fell, more than half the population lives on less than £1 a day and there are a million homeless street children in Egyptian cities (6) – (10).

Suleiman the torturer as Mubarak Mark II ?

Omar Suleiman - Mubarak's torturer in chief

The military have said that alongside the “High Council” the “existing cabinet” will remain in place until elections– that means Mubarak’s appointees, including Prime Minister Ahmed Sahfiq (11) – (12). Suleiman’s role remains unclear – possibly deliberately. Some media reports claim Suleiman (appointed Vice President by Mubarak) is part of the ruling military council ; others quote the Prime Minister as saying the council will decide on Suleiman’s role (13) – (14). Both suggest he is still very much part of the government.

Previous US government statements backing Suleiman, combined with US influence over the Egyptian military through military aid, suggest the Obama administration had a role to play in ensuring Suleiman remained part of the government, though this is uncertain (15) – (17). This suggests an aim similar to the Bush and Clinton administrations in Iraq in the 1990s – remove the dictator, but keep the dictatorship in place.

Suleiman has a long working relationship with the CIA and FBI, particularly in extra-ordinary rendition (or kidnapping for torture), with many people kidnapped by the CIA tortured in Egyptian prisons over the decades. As intelligence minister and head of the Mukhabarat secret police, he was responsible for some of the most horrific torture under Mubarak – sometimes torturing prisoners himself. He recently said he thinks Egyptians don't yet have the “culture” required to support democracy and speculated that it wouldn’t have it any time soon (17a). He is unlikely to have changed overnight. (18) – (21). So it’s no surprise that Egyptian protesters don’t want Suleiman as Mubarak Mark II (22) – (23).

The military have also said they  have suspended the constitution (as demanded by the protesters as it was written and amended by the military and dictatorships) and dissolved parliament (another of the demonstrators’ demands).

The upper ranks of the Military supporting the dictatorship

However while the military have posed as neutral, or even in favour of the demonstrators, in practice they have so far backed the dictatorship and are refusing the protesters’ main demand – re-iterated in their recent People’s communique No. 1-  a transition to an all party National Unity government, excluding Mubarak’s appointees, but including one military representative, before elections – to ensure elections are free and fair. The military have given no response to protesters demands for the right to form trade unions independent of government either  (24) – (28). (Most of the media have given far less detail on protesters’ statements than on those of the military – the full peoples’ communiqué is only available from websites and blogs that have published it)

The military have been involved in the jailing and torture of protesters (29). They allowed Mubarak’s thugs into Tahrir Square to attack the protesters. They have repeatedly demanded that the demonstrators go home both before and since Mubarak’s resignation; and demand the strikes be ended before all the protesters’ main demands are met (30) – (32). Their concessions so far seem to be more an attempt to concede what they have to in order to divide the opposition (by getting some to think they’ve won and go home) without relinquishing power or control over organising new elections (retaining the option of rigging them).

This does not mean that there are no divisions within the military. There may be divisions among the generals and between units personally loyal to Mubarak and those that aren’t. Mubarak remains in the country, ostensibly under military imposed restrictions on members of current or former members of government leaving the country. The motive for imposing those restrictions remains unclear – it may be to prevent officials leaving the country with large amounts of public money, or it might be being used to prevent a panic among those who have ruled for decades that leads to so many fleeing into exile that they and the Generals lose control.

Egypt’s military, like Pakistan’s, has acquired ownership of many of the farms, factories and businesses in the country and makes considerable profits from maintaining as much of the existing order as possible (33) – (34). This cuts two ways though – the military loses money as long as protests and strikes continue and if they spread again. So they are as likely to make more concessions as to crack down on protests and strikes.

Soldiers and Middle Ranking Officers – the hope for the protesters

The protesters, if they are wise (and so far they have been) will be looking to divide the different factions among the Generals, just as they copied Tunisians in focusing their anger on the police to ensure they didn’t side with the army (though Tunisia, like Egypt, has so far only managed to get rid of the dictator, not the dictatorship).

The greatest hope for the people of Egypt is to get the majority of the military – the lower and middle ranks – on their side against the Generals. If the protesters keep up the pressure and the trade unions call more general strikes then at some point the Generals must choose either to concede to their demands or else to risk being overthrown by their own soldiers by ordering them to attack their own people.

This could go either way. Holocaust survivor Primo Levi wrote that in his books on Auschwitz that even the SS Concentration camp guards were mostly not evil people, but people who obeyed orders too readily. They were “average human beings, averagely intelligent, averagely wicked; save for exceptions, they were not monsters…but they had been reared badly. They were, for the greater part, diligent followers and functionaries…some fanatically convinced…many indifferent, or fearful of punishment, or desirous of a good career, or too obedient.” (35)

Primo Levi - who survived the Holocaust

The point is that it does not take uniquely evil people to do evil things - whether the mass murder of the holocaust, or torturing and murdering people who are only peacefully demanding democracy and freedom from torture and murder. It only requires people to act without thinking, obey without questioning, to do what is easiest because it's easiest, or because it's expected of them, or because their career might suffer otherwise, or because they're afraid they'll be punished or ridiculed otherwise.

(One of the protesters in Tahrir Square who refused to go home when the army told him to again after Mubarak’s resignation is a chemist – just like Levi).

Protesters refuse to be moved from Tahrir Square by the army after Mubarak's resignation, until they have democracy instead of a new dictator or one-party state

Social experiments by scientists have shown how strong the urge to conform to the wishes of those in authority is even in democracies.

This is even more the case for soldiers than it is for other people, as soldiers are trained to obey orders without question.

The lower and middle ranks of the Egyptian military – the ordinary soldiers and low ranking officers – need to ask themselves whether they should obey orders to jail, torture or murder the same people they joined the military to protect in the first place. This is not a war. There is not a threat to Egypt from some foreign invasion. The threat comes from their own Generals and Mubarak’s appointees like Suleiman to the Egyptian people. Egypt’s soldiers should not obey that threat but oppose it – and if necessary overthrow it so their country can become a democracy and they and their people can enjoy the same simple freedoms that some of the rest of the world has enjoyed for a long time now – the freedom to say and write what they think, to vote for whatever party or candidate they want to, to stand themselves in elections, to change their government and it’s policies through elections, to not fear that the police may drag them or their family away to be jailed or tortured just for doing any of this.

There have already been many interviews with soldiers and junior officers who do sympathise with the protesters and many middle ranking officers who have even joined the protests (36) – (37).

The elected heads of government of many foreign governments may be allies of the dictatorship (Blair and his family going to Egypt on holiday at Egyptian taxpayers’ expense - and Sarkozy  and his family having spent a Christmas holiday with Mubarak. Blair  also recently called Mubarak “courageous and a force for good” – even after he had his police and thugs murder 300 democracy protesters, while Obama and Clinton back Suleiman), but most of the people of the existing democracies wish Egyptians well and hope they will unite to secure their freedom (38) – (40).


(1) = Wikipedia entry for Omar Suleiman,http://en.wikipedia.org/wiki/Omar_Suleiman

(2) = Human Rights Watch 23 Nov 2010 ‘Elections in Egypt’,http://www.hrw.org/en/reports/2010/11/23/elections-egypt

(3) = Guardian.co.uk 09 Feb 2011 ‘Egyptian talks near collapse as unions back protests’,http://www.guardian.co.uk/world/2011/feb/09/egypt-protest-talks-union-mubarak

(4) = Amnesty Livewire 14 Feb 2011 ‘The new face of Egypt’,http://livewire.amnesty.org/2011/02/14/the-new-face-of-egypt/

(5) = BBC News 14 Feb 2011 ‘Egypt crisis: Protests switch to demands on pay’, http://www.bbc.co.uk/news/world-middle-east-12448413

(6) = IMF Survey Magazine 13 Feb 2008 ‘Egypt: Reforms Trigger Economic Growth’,http://www.imf.org/external/pubs/ft/survey/so/2008/car021308a.htm

(7) = guardian.co.uk 04 Feb 2011 ‘Mubarak family fortune could reach $70bn, say experts’,http://www.guardian.co.uk/world/2011/feb/04/hosni-mubarak-family-fortune

(8) = guardian.co.uk 06 Feb 2011 ‘A private estate called Egypt’, by Professor Salwa Ismail, London School of Economics,  http://www.guardian.co.uk/commentisfree/2011/feb/06/private-estate-egypt-mubarak-cronies

(9) = guardian.co.uk 14 Feb 2011 ‘Egypt's army calls for end to strikes as workers grow in confidence’,http://www.guardian.co.uk/world/2011/feb/14/egypt-army-strikes-workers

(10) = UNICEF ‘A new approach to Egypt’s street children’,http://www.unicef.org/infobycountry/egypt_30616.html

(11) = ABC News 13 Feb 2011 ‘Egyptian army vows transition to democracy’,http://www.abc.net.au/news/stories/2011/02/13/3137352.htm ; ‘"The current government and governors undertake to manage affairs until the formation of a new government," a senior army officer said in a statement delivered on state television.’

(12) = BBC News 14 Feb 2011 ‘Egypt crisis: Protests switch to demands on pay’, http://www.bbc.co.uk/news/world-middle-east-12448413 ; ‘During the transition the cabinet appointed by Mr Mubarak last month will go on governing, submitting legislation to the army chiefs for approval.’ ;        ‘Military statement - Constitution suspended ; Council to hold power for six months or until elections; Both houses of parliament dissolved; Council to issue laws during interim period; Committee set up to reform constitution and set rules for referendum ;Caretaker PM Ahmed Shafiq's cabinet to continue work until new cabinet formed ; Council to hold presidential and parliamentary elections ; All international treaties to be honoured’’

(13) = Al Jazeera 12 Feb 2011 ‘Egypt's military leadership - Brief profiles of members of the Supreme Council of the Armed Forces as it assumes power from Hosni Mubarak’,http://english.aljazeera.net/news/middleeast/2011/02/201121185311711502.html ; ‘General Omar Suleiman, vice-president and former intelligence chief, is among the key retired or serving military officers on the council.

(14) = Press TV 13 Feb 2011 ‘Egypt army to decide on Suleiman fate’,http://www.presstv.ir/detail/165105.html ; ‘"The role of Omar Suleiman will be defined by the Higher Military Council," Egyptian Prime Minister Ahmed Shafiq said on Sunday.’

(15) = guardian.co.uk 06 Feb 2011 ‘Egypt protests: Hosni Mubarak's power fades as US backs his deputy’, http://www.guardian.co.uk/world/2011/feb/06/egypt-protests-hosni-mubarak-sulieman

(16) = NYT 03 Feb 2011 ‘White House and Egypt Discuss Plan for Mubarak’s Exit’,http://www.nytimes.com/2011/02/04/world/middleeast/04diplomacy.html?_r=2

(17) = guardian.co.uk 04 Feb 2011 ‘Egypt protests: US resists calls to cut military aid’, http://www.guardian.co.uk/world/2011/feb/04/egypt-protests-us-military-aid

(17a) = Reuters 10 Feb 2011 'Egypt VP democracy comment misunderstood-state agency', http://af.reuters.com/article/egyptNews/idAFLDE7192CG20110210

(18) =  Al Jazeera 07 Feb 2011 ‘Suleiman: The CIA's man in Cairo  - Suleiman, a friend to the US and reported torturer, has long been touted as a presidential successor’, by Professor Lisa Hajar of the University of California, http://english.aljazeera.net/indepth/opinion/2011/02/201127114827382865.html

(19) = ABC News 01 Feb 2011 ‘New Egyptian VP Ran Mubarak's Security Team, Oversaw Torture’,http://abcnews.go.com/Blotter/egypt-crisis-omar-suleiman-cia-rendition/story?id=12812445&page=1

(20) = New Statesman 2004 ‘America’s Gulag’

(21) = Human Rights Watch 09 May 2005 ‘Black Hole – the fate of Islamists rendered to Egypt’,http://www.hrw.org/en/node/11757/section/1

(22) = Bloomberg Businessweek 01 Feb 2011 ‘Mubarak’s Top Spy Rejected by Cairo Streets as Masses March’,http://www.businessweek.com/news/2011-02-01/mubarak-s-top-spy-rejected-by-cairo-streets-as-masses-march.html

(23) Haaretz (Israel) 11 Feb 2011 ‘ElBaradei: Egypt's Mubarak government is a 'sinking ship' ,http://www.haaretz.com/news/international/elbaradei-egypt-s-mubarak-government-is-a-sinking-ship-1.342694 ; ‘ElBaradei scoffed at Mubarak's statement that he would transfer powers to his new deputy, former intelligence chief Omar Suleiman, in line with the constitution. He continued, "the people on the street feel the same way about Suleiman as they feel about Mubarak. He is to them only a mirror image of Mubarak."

(24) = guardian.co.uk 13 Feb 2011 ‘Egypt's military rejects swift transfer of power and suspends constitution’,http://www.guardian.co.uk/world/2011/feb/13/egypt-military-rejects-swift-power-handover

(25) = guardian.co.uk 12 Feb 2011 ‘Army and protesters disagree over Egypt's path to democracy’,http://www.guardian.co.uk/world/2011/feb/12/egypt-military-leaders-fall-out-protesters

(26) = Reuters 30 Jan 2011 ‘ElBaradei urges U.S. to abandon Mubarak’,http://www.reuters.com/article/2011/01/30/us-egypt-usa-elbaradei-idUSTRE70T30920110130?feedType=RSS&feedName=topNews ; ‘"I have been authorized -- mandated -- by the people who organized these demonstrations and many other parties to agree on a national unity government," ElBaradei told CNN.’

(27) = Scoop NZ 14 Feb 2011 ‘Egypt's Protesters Communique Number 1’,http://www.scoop.co.nz/stories/WO1102/S00466/egypts-protesters-communique-number-1.htm

(28) = ABC News 13 Feb 2011 ‘Egyptian army vows transition to democracy’,http://www.abc.net.au/news/stories/2011/02/13/3137352.htm ; People's Communique No. 1", issued by the protest organisers, demands the dissolution of the cabinet Mr Mubarak appointed on January 29 and the suspension of the parliament elected in a rigged vote late last year.The reformists want a transitional five-member presidential council made up of four civilians and one military person. The communique calls for the formation of a transitional government to prepare for an election to take place within nine months, and of a body to draft a new democratic constitution. It demands freedom for the media and syndicates, which represent groups such as lawyers, doctors and engineers, and for the formation of political parties. Military and emergency courts must be scrapped, the communique says.’ (From the full text linked to above - (27) – ‘syndicates’ here is almost certainly a mis-translation of ‘trade unions’.)

(29) = guardian.co.uk 09 Feb 2011 ‘Egypt's army 'involved in detentions and torture'’,http://www.guardian.co.uk/world/2011/feb/09/egypt-army-detentions-torture-accused

(30) = guardian.co.uk 11 Feb 2011 ‘Egyptian army backs Hosni Mubarak and calls for protesters to go home’,http://www.guardian.co.uk/world/2011/feb/11/egyptian-army-backs-hosni-mubarak

(31) = guardian.co.uk 13 Feb 2011 ‘Tahrir Square protesters defy army to keep Egypt's revolution alive’,http://www.guardian.co.uk/world/2011/feb/13/tahrir-square-protesters-egypt-revolution

(32) = guardian.co.uk 14 Feb 2011 ‘Egypt's army calls for end to strikes as workers grow in confidence’,http://www.guardian.co.uk/world/2011/feb/14/egypt-army-strikes-workers

(33) = NPR 14 Feb 2011 ‘Why Egypt's Military Cares About Home Appliances’, http://www.npr.org/blogs/money/2011/02/10/133501837/why-egypts-military-cares-about-home-appliances

(34) = NPR 14 Feb 2011 ‘The Friday Podcast: Egypt's Military, Inc.’,http://www.npr.org/blogs/money/2011/02/07/133503696/the-friday-podcast-egypts-military-inc

(35) = Primo Levi (1986) ‘The Drowned and the Saved’  - See last pages of ‘Conclusion’

(36) = Washington Post 30 Jan 2011 ‘Unrest tests Egyptian military and its crucial relationship with U.S.’,http://www.washingtonpost.com/wp-dyn/content/article/2011/01/29/AR2011012904418.html ; ‘On Saturday, soldiers seemed largely to sympathize with the throngs of protesters.’

(37) = Reuters 11 Feb 2011 ‘Egypt army officer says 15 others join protesters’,http://af.reuters.com/article/egyptNews/idAFLDE71A01720110211?sp=true ; ‘An Egyptian army officer who joined protests in Cairo's Tahrir Square said on Friday 15 other middle-ranking officers had also gone over to the demonstrators. "The armed forces' solidarity movement with the people has begun," Major Ahmed Ali Shouman told Reuters by telephone just after dawn prayers. On Thursday evening Shouman told crowds in Tahrir that he had handed in his weapon and joined their protests demanding an immediate end to President Hosni Mubarak's 30-year rule. "Some 15 officers ... have joined the people's revolution," he said, listing their ranks ranging from captain to lieutenant colonel. "Our goals and the people's are one."’

(38) = guardian.co.uk 08 Feb 2011 ‘France's prime minister spent family Christmas break as guest of Mubarak’,http://www.guardian.co.uk/world/2011/feb/08/france-francois-fillon-christmas-egypt-mubarak

(39) = Independent 06 Apr 2002 ‘Blair faces tax bill over Egypt holiday charity donation’,http://www.independent.co.uk/news/world/politics/blair-faces-tax-bill-over-egypt-holiday-charity-donation-656562.html

(40) = guardian.co.uk 02 Feb 2011 ‘Tony Blair: Mubarak is 'immensely courageous and a force for good'’,http://www.guardian.co.uk/world/2011/feb/02/tony-blair-mubarak-courageous-force-for-good-egypt

Saturday, February 13, 2010

Haitians need the countries aiding them now to stop starving them through unfair trade and coups in future

A 15-year-old girl shot dead by Haitian police after the earthquake for stealing paintings ; Photograph: Carlos Garcia Rawlins/Reuters


The earthquake in Haiti called the world’s attention to a country whose people have been suffering for centuries – but much of their current suffering started before the earthquake and is caused not by a lack of outside intervention but by too much of it, with the wrong motives. Of course Haitians need all the emergency aid they can get, but the causes of their suffering – including the lack of earthquake proof buildings like those found in California – have a lot to do with the French and US governments and firms profiting from reducing most of them to poverty and starvation – and not just in the past.


Haitians – dying as slaves of France and America then and now

In the 18th century they were slaves whose lives were treated as worthless by owners whose fear of rebellion led to incredible cruelty. Their rebellion was crushed first by the French. Haiti then had to pay an ‘indemnity’ for the costs to the French of crushing the rebels and reduce taxes on French imports and exports. By the early 20th century American forces arrived and occupied the country, taking control of its finances and getting a puppet leader to grant the US the ‘right’ to ‘develop’ Haiti’s ‘natural resources’.

The US has became the dominant foreign power in Haiti, though the French government still believes that Haiti is in it’s ‘sphere of influence’. ‘Papa Doc’ Francois Duvalier went from saving thousands of lives as a doctor to having thousands killed as a US-backed dictator. Under Carter’s Presidency in the US the ‘Baby Doc’ Jean Charles Duvalier dictatorship in Haiti briefly felt the need to restrain itself from murdering too many of its critics and opponents in case it lost some foreign aid, but on the night of Reagan’s election Duvalier’s ‘tonton macoutes’ (hired thugs with machetes and guns) poured into the streets of the Haitian capital Port Au Prince shouting ‘The Cowboys are in power – human rights are over’. Once Reagan took office in January 1980 the killing began again in earnest (1).

While there is a great deal of controversy over the past Presidency of Jean Bertrand Aristide, a former Catholic priest in Port Au Prince, there is no doubt about one thing – US policy under both Republican and Democratic Presidents and congresses has been to demand ‘free trade’ in Haiti – privatisation, cuts in public services and access to Haiti for US based firms. In 1980 Haiti produced enough food to feed it’s own population. Pressure from the US and European governments through the IMF got import tariffs on rice imports to Haiti slashed. While demanding Haiti end all subsidies and protection for Haitian farmers the US government increased subsidies to American farmers.

So while in the past Haiti produced 80% of the rice eaten there, now it imports 80%. Under IMF conditions on loans run up under US backed dictatorships in the past Haiti also began exporting cash crops to the US while having to import Us-subsidised American rice, putting its own farmers out of business. The wages paid in Haitian factories, mostly by American based multinationals, had fallen to 20% of their 1981 levels by 2000, partly due to the US trained military targeting trade unionists and governments banning trade unions (see the Oxfam website and Professor Peter Hallward’s book ‘Damming the Flood’ on this) (2), (3).

This has had everything to do with benefitting investors from the US, France and their allies and little or nothing to do with helping the majority of Haitians, who, reduced to an income of under 50 pence a day, couldn’t afford food and were buying ‘mud cakes’ made of mud mixed with salt to fill their own and their children’s stomachs as they starved by July 2008 (4). This was before the hugely exaggerated ‘credit crisis’ or the earthquake.

Aristide came to prominence as a critic of the Duvalier dictatorships – and continued to criticise the military government of General Namphy which replaced the younger Duvalier. On September 11th 1988 tontons macoute burst into his church at San Jean Bosco during a sermon in which he as usual denounced the dictatorship for its repression, its corruption and for doing nothing for the poor majority. The attackers shot and hacked the congregation and set fire to the church, killing dozens. This echoed the US-backed military and death squads in El Salvador and their assassination of Bishop Oscar Romero in March 1980 and the murder of many of his supporters before and after his death. Aristide, unlike Romero, survived the attempt on his life – and several attempts before and after it. Both Aristide and Romero were outspoken on behalf of the poor. The Haitian military, like the Salvadoran, was (and is) US-trained.


Aristide – Liberator or corrupted by power?

However Aristide refused to call for reconciliation with his enemies. Instead he told his supporters that they were weak alone, but strong together, that together they were Lavalas (the flood). He is accused by his critics of encouraging violence against his political enemies with public speeches that included lines like "do not forget to give them what they deserve" and "a machete is a useful tool in many situations". However Aristide feared his enemies were preparing to kill him and his supporters. Pre-empting this may have been morally wrong or unwise or paranoid, but he had every reason to feel paranoid. If Aristide is not a saint it’s hard to know how any of us would have reacted when people close to us had been killed and we feared for both our own lives and those of our families and allies. Haitian politics is very different to American or European politics in which the losers know losing doesn’t mean possible death for them, their families and those who supported them. His defenders also say he only approved of violence in self-defence against the tonton macoutes and the army – and that his movement is primarily non-violent as it could never hope to beat the automatic weapons of his enemies.

The US government was critical of the Namphy regime over the San Jean Bosco massacre and cut aid to it as a result. In 1990 Aristide was elected President and began to carry out major reforms to benefit the poorest, including increasing the minimum wage

The French government was greatly displeased by Aristide's government taking it to court, demanding that it repay the $21 billion he estimated France owed Haiti between the 'indemnity' (which was only paid off by Haiti in 1947) and its use of Haitians as slave labour.

He was soon overthrown in a military coup in 1991 in which the US-trained military massacred hundreds of people (and thousands over the next three years), but restored to office by an American invasion of Haiti in 1994 under President Clinton, towards the end of his first term. However there were plenty of conditions placed by the Clinton administration on his restoration apart from reconciliation with his enemies. They included adopting IMF imposed ‘economic reforms’ – the usual privatisations, cuts in public services and welfare payments and access to Haiti for foreign firms, along with a cut in the minimum wage - and Aristide not standing in the next Presidential election, meaning he would actually have been in office for less than two of the five years of his term.

On being restored to office (but barely to power) Aristide began policies to benefit the poor majority again and filled his government with community organisers and charity workers, angering both the traditional Haitian elite and US firms, who benefited from low wages ; as well as career politicians who had expected lucrative ministerial posts in his government.

Aristide also dismantled the US-trained Haitian military, given the long history of most of it in backing dictators and overthrowing elected governments (not least his own in 1991). The Clinton and Bush administrations now moved to backing right-wing paramilitary groups, the FRAPH and FADH, as a means of maintaining their influence by force in Haiti. Many politicians denied a place in Aristide's government were funded with US aid to set up 'civil society' groups to try to discredit Aristide

Aristide and his OPL (party of the Lavalas or ‘flood’) subsequently split, with Aristide forming the ‘Fanmi Lavals’ (family of the flood) while many politicians denied a place in Aristide's government formed a separate OPL (with the L now standing for ‘Lutte’ or ‘struggle’ rather than Lavalas).

Aristide was forced stand down in the next election by the Clinton administration and US congress making US aid conditional on this action. His ally Rene Preval took over for a term, before Aristide was re-elected with a big majority as President in the 2000 Haitian Presidential elections, which, despite much US and French government propaganda, were declared largely free and fair by international observers.

The version of events given from here on continues to vary according to the views of the writer , with some casting Aristide as the hero, resisting American backed villains; others (like Michael Diebert in his book ‘Notes on the Last Testament’) casting him as the villain – a paranoid, ruthless or power crazed man who had lost his way and become corrupt.

What is certain is that in 2004 the Bush administration and the French government backed another military coup against Aristide and he was flown into exile in the Central African Republic, whose French backed dictatorship banned him from criticising the US or French governments or their role in the coup in the media (5), (6).

I’ll leave it up to others to read for themselves and decide which version they believe and whether Aristide was corrupted by power or fear or simply had his character assassinated by the US and French governments when they realised he wasn’t meeting their demands (though my own view is that a great deal of character assassination and propaganda against Aristide is involved). The important point to make is that no US government has ever criticised a government much for being undemocratic or ruthless or dictatorial unless that government was either hostile to the US or else restricting profits for American investors and firms by running it’s country for the benefit of the majority of the population, rather than for foreign investors in alliance with a small indigenous elite collaborating with them. The Saudi monarchy has never yet held a free election or many fair trials. President Uribe of Colombia and his government have had plenty of dissidents and trade unionists murdered using right-wing paramilitaries that work hand in glove with the US funded military. President Mubarak of Egypt has banned the main opposition party, rigs elections and has opposition activists –whether Muslim, conservative or liberal – attacked by thugs. Yet they will never get the criticism that Chavez in Venezuela (repeatedly democratically elected) , Castro (an unelected dictator but with a broadly socialist economic policy until recently) or Aristide do. So if the US government is hostile to Aristide it’s more likely that that’s because he tried to run Haiti for the benefit of the majority of Haitians.

That may be why the US government had international aid coming from the Inter-American Development Bank and various other sources to Haiti blocked as long as Aristide was in power ( as pointed out by Professor Paul Farmer, who also runs a medical charity in Haiti and works for it there) (7).

The other point is that as a result Haitians have quietly starved to death in huge numbers so American and French investors can profit.


Invading Haiti to keep out the damn immigrants and control Haiti’s trade policy– 1994 and 2009

On the few occasions when the US government sends aid it also has mixed motives. In 1994 as today a key aim was to prevent refugees reaching Florida and upsetting the next election.

The Irish Independent newspaper reported in January that “As well as providing emergency supplies and medical aid, the USS Carl Vinson, along with a ring of other navy and coast guard vessels, will act as a deterrent to Haitians who might be driven to make the 681-mile sea crossing to Miami..."The goal is to interdict them at sea and repatriate them," said the US Coast Guard Commander Christopher O'Neil.’(8)

Haitian orphans are welcome. Haitian refugees and immigrants are sent home to suffer (other than CIA and US military intelligence ‘assets’ responsible for many political killings, many of whom retire to Florida).

Another aim has always been to use Haiti as a source of cheap labour for American multinationals – and more importantly to prevent Aristide’s example being followed by other countries.


Shooting the poor

So after the earthquake when Haitian police handed looters over to mobs to be burned alive there was little comment from the Obama administration or President Sarkozy; nor when Haitian policem shot a 15 year old girl dead for stealing paintings to try to get money to buy food - and that was no isolated incident (8) - (10).


How impoverishing Haitians caused earthquake deaths due to shoddy buildings

Another fact that’s given less prominence than it deserves is that according to seismologists the earthquake that hit Haiti wasn’t especially big in historical terms and only killed so many people because so many of Haiti’s buildings are not designed to resist earthquakes despite the capital of the country lying on a fault line. A larger earthquake – 7.0 on the Richter scale – in Los Angeles in 1994 killed less than 70 people because the buildings there were designed to withstand earthquakes. All the money taken in interest payments in debt, all the money never paid due to low minimum wages and reduced benefits, ensured that even among Haitians who realised the risk couldn’t afford to build earthquake resistant houses and buildings (11), (12).


They don’t owe us, We Owe them

Naomi Klein, the author of 'The Shock Doctrine' quotes Haitian economist Camille Chalmers.

'Debt cancellation is a good start, he told al-Jazeera English, but: "It's time to go much further. We have to talk about reparations and restitution for the devastating consequences of debt." In this telling, the whole idea that Haiti is a debtor needs to be abandoned. Haiti, he argues, is a creditor – and it is we, in the west, who are deeply in arrears.'

For decades one of the poorest countries in the world has been paying money to foreign debtors and much of it has been debt run up under dictatorships backed or tolerated by the US government, which in terms of international law is ‘odious debt’ which should be written off by the creditors – even more so when they had the power to end those dictatorships and chose not to.

The media coverage of Haiti since the earthquake has helped the campaign to cancel this debt and Prime Minister Gordon Brown of the UK has come out in favour of cancelling it – but unless the campaign continues beyond the media coverage, those successes may be reversed.

Unless things change from now on – unless the US and French and every other government are pressured by the people of their own countries to stop imposing economic policies that cause huge numbers of deaths through poverty on Haitians – and to stop seeking to rule Haiti by arming and funding the Haitian military, whose only war has been on it’s own people (which is why Aristide disbanded it in his first term in office – and why the US later helped to re-establish it). Of course Haiti needs investment – but on it’s people’s terms, not the terms of foreign governments, firms or those collaborators among the tiny wealthy Haitian elite (though some wealthy Haitians have taken the side of the majority).

Otherwise Haitians will keep dying like flies and watching their children die, just as they did before the earthquake, during it and since it; dying quickly - in political killings, in police shootings of desperate teenagers turning to petty theft to try to get enough to eat, in future earthquakes under the rubble of cheap buildings ; or dying slowly and quietly– of illness or of hunger , while eating mud cakes mixed with salt to try to fill their aching, empty stomachs. This is not because developed world governments haven’t done enough – but because they have done far too much to repress and exploit benefits for the profit of firms based in their own countries – and to prevent the “threat” posed by liberation theology like Aristide’s spreading.

Johan Hari points to one success :

‘The IMF announced a $100m loan, stapled on to an earlier loan, which requires Haiti to raise electricity prices, and freeze wages for the public-sector workers who are needed to rebuild the country...For the first time, the IMF was stopped from shafting a poor country – by a rebellion here in the rich world. Hours after the quake, a Facebook group called "No Shock Doctrine For Haiti" had tens of thousands of members, and orchestrated a petition to the IMF of over 150,000 signatures demanding the loan become a no-strings grant. After Naomi Klein's mega-selling exposé, there was a vigilant public who wanted to see that the money they were donating to charity was not going to be cancelled out by the IMF. ... The IMF backed down. It publicly renounced its conditions – and even said it would work to cancel Haiti's entire debt.’ (13)

That’s a real victory, but the pressure needs to be maintained. So far according to the UN donor governments have only delivered 6% of the aid they promised to feed Haitians even through the current emergency created by the earthquake. (14)


Sources :

(1) = Michael Deibert (2005) ‘Notes from the Last Testament’, Seven Stories Press, London & NY , 2005, Chapter 4, pages 80 – 81 of paperback edition (A Reuters correspondent in Haiti from 2001 till 2003, Deibert is highly critical of Aristide, seeing him as having been behind many political killings and having become a dictator)

(2) =Peter Hallward (2007) ‘Damming the Flood – Haiti, Aristide and the politics of containment’, Verso, London and New York, 2007 (Professor Hallward makes a convincing and well-sourced case that many of the claims about Aristide’s ‘dictatorship’ are a well orchestrated propaganda campaign aimed at legitimising US and French government backed military coups in alliance with some of the wealthiest businesspeople in Haiti and elements of the military and police trained in the US)

(3) = Oxfam – Hard Times in Haiti slide show - http://www.oxfam.org.uk/oxfam_in_action/issues/food_crisis/haiti_slideshow.html

(4) = Guardian 29 Jul 2008 ‘Haiti: Mud cakes become staple diet as cost of food soars beyond a family's reach’,
http://www.guardian.co.uk/world/2008/jul/29/food.internationalaidanddevelopment

(5) = Paul Farmer (2004) ‘Who removed Aristide?’ in London Review of Books Vol. 26, No. 8, 15 Apr 2004, pages 28-31,
http://www.lrb.co.uk/v26/n08/paul-farmer/who-removed-aristide

(6) = Democracy Now 17 Mar 2004 ‘Exclusive: Aristide Talks With Democracy Now! About the Leaders of the Coup and U.S. Funding of the Opposition in Haiti’,
http://www.democracynow.org/2004/3/17/exclusive_aristide_talks_with_democracy_now

(7) = Paul Farmer (2004) ‘What happened in Haiti? Where Past is Present’ in Noam Chomsky, Paul Farmer, Amy Goodman et al (2004) ‘ Getting Haiti Right this Time : The US and the Coup’, Common Courage, Monroe, Maine, US, 2004, Chapter 2 , (Professor Farmer, who also works for a medical charity he works for in Haiti comes to similar conclusions to Hallward’s)

(8) = Independent (Ireland) 20 Jan 2010 ‘US ships set up blockade to prevent a mass exodus -
Fleeing Haitians warned they will be sent back’, http://www.independent.ie/world-news/americas/us-ships-set-up-blockade-to-prevent-a-mass-exodus-2022667.html

(9) = guardian.co.uk 20 Jan 2010 ‘Haiti looting horror: Girl shot dead by police for taking paintings’, http://www.guardian.co.uk/world/2010/jan/20/haiti-earthquake-teenager-shot-police and guardian.co.uk 17 Jan 2010 ‘Retribution swift and brutal for Haiti's looters’,
http://www.guardian.co.uk/world/2010/jan/17/retribution-lynching-haiti-looters

(10) = ABC News 18 Jan 2010 ‘Police shoot at looters in struggle for survival’, http://www.abc.net.au/news/stories/2010/01/18/2794297.htm

(11) = ‘Haiti’s Killer Quake : Why It Happened’, 02 Feb 2010, 9pm GMT on Channel 4 (UK)
– watch at http://www.channel4.com/programmes/haitis-killer-quake-why-it-happened/4od#3030763 or at
http://www.youtube.com/watch?v=--mWQmIh_cQ

(12) = Newsweek 21 Jan 2010 ‘Why the Palace Fell - Lessons learned from the destruction of Haiti's presidential home’,
http://www.newsweek.com/id/231846

(13) = Independent 05 Feb 2010 ‘Johann Hari: There's real hope from Haiti and it's not what you expect’, http://www.independent.co.uk/opinion/commentators/johann-hari/johann-hari-theres-real-hope-from-haiti-and-its-not-what-you-expect-1889958.html

(14) = UNoCHA IRIN News 09 Feb 2010 ‘HAITI: Funding gap for nutrition’, http://www.irinnews.org/Report.aspx?ReportId=88049