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Reply #38: not exactly. in "stages". & after delaying the process since 1996. [View All]

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Hannah Bell Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-18-10 05:00 AM
Response to Reply #14
38. not exactly. in "stages". & after delaying the process since 1996.
From a 2007 analysis: Debt Cancellation for Haiti: No Reason for Further Delays

Executive Summary

Haiti is the most impoverished country in the Western Hemisphere, with 76 percent of its population below the poverty line and a life expectancy of 53 years. Yet it was originally excluded from the International Monetary Fund (IMF) and World Banks Heavily IndebtedPoor Countries (HIPC) initiative for debt cancellation in 1996, because of a technicality relating to its debt service burden.

Although it was subsequently included (in 2006), because of this delay Haiti is currently struggling to meet the requirements for cancellation of most of its total $1.54 billion foreign public debt. Thus, while the other HIPC countries in the Western Hemisphere (Bolivia,Guyana, Honduras, and Nicaragua) have already received debt cancellation under the HIPC and Multilateral Debt Relief Initiative (MDRI) Haiti still has to reach the "completion point" under the HIPC initiative in order to receive debt cancellation.

If this completion point is not reached by September 2008, as now appears likely, Haiti would have to pay an additional $44.5 million in debt service payments to multilateral institutions (mostly the World Bank and the Inter-American Development Bank). This is equivalent to about 26 percent of Haiti's spending on public health, where there are many vital unmet needs. Furthermore, this total does not include bilateral debt service of $11.4million, some cancellation of which can also be expected.

There are other reasons to avoid delay. There is little reason to believe that the conditions set by the IMF and World Bank for further debt cancellation are likely to benefit Haiti.Although the experience of HIPC debt cancellation is positive with regard to the funds freed up from debt cancellation being used for poverty-reducing expenditures,1 the conditions attached to such debt cancellation do not have a positive track record.

For example, in Aprilof this year the IMF's Independent Evaluation Office released a report that examined the experience of 29 Sub-Saharan African countries that underwent Poverty Reduction and Growth Facility (PRGF) programs, and were therefore subject to IMF conditions, from 1999-2005.

The report was highly critical of the IMF's role, and among other findings noted that nearly three-quarters of the aid money reaching these countries was not spent. Rather, at the IMF's urging, this money was used to pay off debt and to add to reserves.2

Another reason that these institutions should grant immediate debt cancellation is that they contributed to enormous economic damage in Haiti by cutting off all disbursements from 2001 2004. There is considerable evidence that this cutoff of aid was part of a deliberate effort by the U.S. government to destabilize and ultimately topple the elected government of Haiti.3

...For a country as poor as Haiti, the aid embargo was enormously destructive to the economy,and the violence during and after the coup inflicted further damage and cost thousands oflives. Because of the multilateral creditors' participation in this destruction, and for the other reasons noted in this paper, Haiti's debt should be cancelled without further delay.

But it wasn't.

So spare me the "IMF/World Bank are really pretty nice" fairy tale.

Haiti has been a cash cow for Europe and the US for 200 years.
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  -IMF to Haiti: Freeze Public Wages (The Shock Doctrine Begins) tekisui  Jan-17-10 03:55 PM   #0 
  - Oh fuck me Klein was right.  anonymous171   Jan-17-10 03:56 PM   #1 
  - Of course, she was, and she is.  inna   Jan-17-10 04:37 PM   #13 
     - So how does last year's debt forgiveness fit into this?  anigbrowl   Jan-17-10 04:50 PM   #15 
     - Yes, but at the time I thought that she was just being overly paranoid  anonymous171   Jan-17-10 05:14 PM   #16 
        - Nope. And sending Junior, and forgive me, Clinton out there  EFerrari   Jan-17-10 07:12 PM   #20 
        - Naomi Kleins SHOCK DOCTRINE  dotymed   Jan-18-10 04:07 AM   #34 
  - WTF?  Odin2005   Jan-17-10 03:57 PM   #2 
  - Already, rumors have Wyclef Jean in 'scandal'.  louis-t   Jan-17-10 04:04 PM   #3 
  - Actually it's more like his 'charity' had its financial documents come out.  Spider Jerusalem   Jan-17-10 08:00 PM   #24 
  - It's not a rumor, but based on a reading of IRS filings for his charity  anigbrowl   Jan-17-10 09:39 PM   #28 
  - Yikes.  louis-t   Jan-18-10 10:29 AM   #48 
  - Let's face it, folks...this is STILL about punishing the home  Ken Burch   Jan-18-10 04:00 PM   #57 
  - K&R  happy_liberal   Jan-17-10 04:05 PM   #4 
  - "Haiti was made poor--by France, the United States, Great Britain, other Western powers"  tblue   Jan-17-10 04:12 PM   #5 
  - AMNESIA  dotymed   Jan-18-10 05:00 AM   #37 
  - The information presented here is all good information  truedelphi   Jan-17-10 04:13 PM   #6 
  - I fear you are too too correct.  dixiegrrrrl   Jan-18-10 08:31 AM   #44 
  - In Haiti The Shock Doctrine has been underway for a long while.  Mika   Jan-17-10 04:14 PM   #7 
  - You are right, I should have said it continues.  tekisui   Jan-17-10 04:16 PM   #8 
  - 100% correct  malaise   Jan-17-10 04:19 PM   #11 
  - By the way Naomi and Spitzer are on  malaise   Jan-17-10 04:24 PM   #12 
  - What is Zakaria? is it an internet radio show  truedelphi   Jan-17-10 09:22 PM   #27 
     - He has a show on CNN on Sunday mornings.  EFerrari   Jan-17-10 10:20 PM   #30 
  - You bet. n/t  EFerrari   Jan-17-10 07:10 PM   #19 
  - Meanwhile the French are in the process of canceling Haiti's debt  malaise   Jan-17-10 04:17 PM   #9 
  - Actually, the IMF and World Bank already cancelled $1.2 billion (>60%) of their debt last year  anigbrowl   Jan-17-10 04:45 PM   #14 
     - Have you actually read the book? nt  glitch   Jan-17-10 06:53 PM   #17 
     - Yes. What's your point? /nt  anigbrowl   Jan-17-10 07:08 PM   #18 
        - It's an excellent read and you could learn a lot about how the process works.  glitch   Jan-17-10 07:18 PM   #21 
           - Maybe I already know about that and just don't share your opinion.  anigbrowl   Jan-17-10 07:46 PM   #23 
              - Read Klein's book - No bullshit! Or get it on CD's so it can be read to you!!  GreenTea   Jan-18-10 04:06 PM   #58 
     - not exactly. in "stages". & after delaying the process since 1996.  Hannah Bell   Jan-18-10 05:00 AM   #38 
     - One would almost think that was the purpose of the debt cancellation.  Overseas   Jan-18-10 10:09 AM   #47 
  - WATCH the UN Security Council Emergency Meeting tomorrow  nadinbrzezinski   Jan-17-10 04:17 PM   #10 
  - Shameful and typical  jonathon   Jan-17-10 07:32 PM   #22 
  - Lest we forget, Haiti's indigenous leaders have a sordid history of piling up fortunes in  bertman   Jan-17-10 08:24 PM   #25 
  - You mean those bribes from foreign multinationals  malaise   Jan-18-10 04:47 AM   #36 
  - You can only be a puppet if you are willing to accept the bribes. If we are ready to assail  bertman   Jan-18-10 07:32 AM   #40 
  - Haiti's "leaders" have a history of being hand-picked by the US & toppled at will by the US.  Hannah Bell   Jan-18-10 05:01 AM   #39 
     - You are correct. My point is that Haiti's past leaders have been all too willing to go along  bertman   Jan-18-10 07:34 AM   #41 
  - Recommend  TexasObserver   Jan-17-10 08:53 PM   #26 
  - Call it Democracy  maryf   Jan-17-10 10:17 PM   #29 
  - After reading all the comments  cartach   Jan-17-10 10:30 PM   #31 
  - Slanted one way?  saorsa   Jan-18-10 03:43 AM   #33 
  - please do a little DU Archive search during 2004 and see what was being discussed here at DU when  flyarm   Jan-18-10 08:10 AM   #42 
  - k/r  Solly Mack   Jan-17-10 10:32 PM   #32 
  - "by 1900, it was spending 80 percent of its national budget on repayments."  Hannah Bell   Jan-18-10 04:43 AM   #35 
  - I knew this crap is going to happen.  Jkid   Jan-18-10 08:18 AM   #43 
  - I don't think the IMF should be defined as sort of a UN. It is the front for the barons.  peacetalksforall   Jan-18-10 08:43 AM   #45 
  - kick, nt.  maryf   Jan-18-10 09:20 AM   #46 
  - AND.......... the "speculation" begins, as well. That cruise ship  Fire1   Jan-18-10 11:32 AM   #49 
  - Oh hysterics and delusions!! Why is this not moved to the  Fire1   Jan-18-10 11:38 AM   #50 
  - +1  Fire1sKid   Jan-18-10 11:43 AM   #51 
  - If Obama were more like LBJ this wouldnt happen  Fire1sKid   Jan-18-10 11:46 AM   #52 
  - ROFL:  Fire1   Jan-18-10 11:56 AM   #53 
  - Servitude to the global financial system created by and serving the original slavers.  Greyhound   Jan-18-10 01:09 PM   #54 
  - I'm Thinking It's Happening Here In California As Well...  WillyT   Jan-18-10 03:07 PM   #55 
  - This kind of thing was NEVER supposed to happen once Obama was elected  Ken Burch   Jan-18-10 03:57 PM   #56 

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