IMF and World Bank Challenged
The following is the text of the
General Position of the Initiative against Economic Globalisation -
Prague 2000 issued on the occasion of the World Bank and the
International Monetary Fund summit in Prague. It has been released by
INPEG (Iniciativa Proti Ekonomické Globalizaci).
About twenty thousand of the world's bankers, economists and
investors will arrive in Prague in order to take part in the 55th Annual
Meetings of the World Bank Group (WB) and the Board of Governors of the
International Monetary Fund (IMF) from September 26-28, 2000. This prestigious
event of the global economic elite, the first one of its kind in the Central
East Europe, is of a special importance. The delegates will gather so as to
propose the scheme of the complete liberalisation of the global economy, which
they present as a single instrument for the solution of the world's problems.
We do not endorse this opinion. On the contrary, we consider
the economic globalisation as well as the policy of WB and IMF as a major cause
of the serious problems of today's world and not as a chance for the majority
of mankind living in destitution or as an opportunity for the deflection of the
global environmental crisis. This summit is a challenge to those who are
concerned about the destiny of today's world. The IMF and WB have influenced it
negatively for more than 50 years. In this connection we recall that the summit
will cost at least 935 million crowns of public money which are desperately
needed in the social programmes, healthcare, education, environmental
protection, etc.
In the process of economic globalisation which involves
progressive curtailment of the state influence upon the circulation of
transnational capital both institutions play crucial roles. By means of its
economic policy the IMF as well as the World Bank and its groups open
developing countries (among which they also count with regard to its GNP the
Czech Republic) to foreign investors and their speculative interests. The IMF
and WB openly acknowledge that they are led only by economic considerations and
thus willingly support various authoritative or dictatorial regimes. No wonder
these institutions are not democratic themselves – the decision rights of
single members depend upon the amount of invested money according to the
principle "more dollars, more votes".
Within the framework of the so called Structural Adjustment
Programmes the IMF and the World Bank determine strict conditions for providing
loans to the developing countries including deregulation, liberalisation and
privatisation. These measures strengthen the position of transnational capital
but worsen the situation of the majority of populations in the developing
world. The removal of social and environmental regulations (which might
"discourage" the investors) and cuts in public spending result in the
inaccessibility of health care and education, sharp increases of living costs,
job-reductions, unemployment and curtailment of union rights.
The impacts on agriculture are especially devastating as
production aimed at local self-sufficiency is suspended and the countries are
compelled to raise monocultures for export, which leads to food shortages and
in some countries even to famine. The impacts of the IMF and WB activities on
the environment are also tragic – the megalomaniac projects of the World
Bank result in the destruction of local ecosystems as well as in the enforced
relocation of millions of people.
The principal objective of these programmes is to allow for
the penetration of foreign speculative capital, which does not contribute to
the creation of any value. It only takes advantage of the absence of social and
environmental regulations, takes control of the markets and sometimes destroys
entire industrial branches. The recommendations of the IMF and WB thus mostly
do not lead to the promised economic growth. The only thing left behind is a
huge debt and in order to check its further increase, the separate countries
have to pay considerable sums at least for amortisation of interest payments.
Arguments pointing to the influx of foreign investments sound insincere and
unconvincing.
Today roughly 40,000 members of the global financial
oligarchy control 80% of the world's trade. The possessions of the 200 richest
people are larger than the total income of 41% of the world’s population.
More than 250 million children have to work in the most inhuman conditions for
bare survival. About 17 million children die every year from easily curable
diseases. The desperate condition of today's world is not natural – it is
merely a logical consequence of the system in which heightening of the profits
of the most rich is the only respected value.
We do not think that we can oppose this development only
through lobbying at the institutions like the IMF and the WB. We rely rather
upon the movements from below made up from diverse groups like trade unions,
unemployed, small or landless peasants, environmental initiatives, radical
democratic political organisations, etc. Finding an alternative to the current
social model is in our view an urgent necessity. However, we do not think that
globalisation can be opposed by the protective policy of the national state
which has already shown how willingly it succumbs to transnational
corporations. We believe that the alternative is a society which is based not
on the profit of a few but on the genuine needs of many, on the principles of
solidarity, mutual assistance and sustainable development.
Although our views on the origins of the serious problems of
today's world and their solution differ, we regard the September summit of the
IMF and WB as such a crucial challenge that we have founded a common platform
Initiative Against Economic Globalisation - Prague 2000. It is not a new
organisation with an independent programme, but a democratic instrument of
mutual communication and co-ordination between diverse groups which plan to
react to the IMF and WB summit. It should contribute to the wider publicity of
actions organised by these groups. Together we want to organise some
protest(s), lectures, and educational and cultural events. The main event
should be a counter-summit during which the specific harmful aspects of the
economic globalisation as well as the search for alternatives could be
discussed.
Initiative Against Economic Globalisation - Prague 2000 is
open to all liberal-minded individuals and groups that would like to express
their opinions regarding the summit of the IMF and WB. We propose this
initiative as a common platform which, while maintaining the programme autonomy
of the separate groups, strengthens their voice even more. Similar gatherings
of the institutions of economic globalisation are attended by increasing
resistance of the general public. Let the voice of protests echo also in
Prague. Let us face the globalisation of capital with the globalisation of
solidarity.
Support or approval with the General Position of Initiative
Against Economic Globalisation - Prague 2000 may be expressed via e-mail
address Prague2000_cz@hotmail.com. We will also welcome any information about
the form of co-operation and assistance you can offer. This concerns also
distribution of this statement. Other information can be found also on the web
page http://inpeg.ecn.cz.
Prague, March 1st, 2000
Initiative Against Economic Globalisation - Prague 2000
