Meeting of World Bank and IMF in Prague

Possibly 20 000 bankers, economists and investors will meet from Sept 26 to 28 in Prague. It will be the 55th meeting of World Bank and the board meeting of the Governors of IMF, but actually it will be the first one in eastern Europe. It will be a prestigious event. The delegates will meet to present the program of total liberalization of world economy as the only tool to solve global problems. But they have not the solution, they are the problem themselves! Liberalism is the fight for freedom of capital!

Both institutions are playing a crucial role in cutting down national influence on circulation of transnational capital. It's the scope of World Bank and IMF to open markets of developing countries for foreign investment and its speculative interest. This means for example to dismantle any procurements of poor countries which protect their environment and the less competitive position of their economy against the capital of rich countries.

The World Bank is the biggest creditor of "third world countries". In the past the World Bank has supported eager dictatorships , which spend these funds to finance their military expenses to crush social riots. These are exactly the same regimes, e.g. Chile, with them they used to cooperate. But today they impute them "corrupt elites", "lack of democracy" and "state bureaucracy" as the causes for baffled economic achievement, to turn away attention from their own mistakes.

Generally the World Bank grants sectored credits (incl. directive) including structural adjustment programs. This means for agriculture: away from subsistence and towards export! Production for internal needs or local markets isn't part of GDM (?) gross national product , isn't mentioned in statistics, has not at all relevance for international financial markets, doesn't exist in the minds of World Bank strategists. Fields, where women did plant the basic food for their families will be converted to plantation for coffee and cacao with high technical expense. These high technical expenses are equivalent to commissions e.g. for Daimler. The World Bank gives its loans by this way directly to corporations to deliver their products.

Because World Bank "experts" issues to many borrowers the same order what they shall cultivate, the markets are overflowed with these products, the prices are dropping as a result of the concurrence, the credits and the higher interests becoming unpayable. The arable acreage for food requirements are gone for ever, hunger, rural exodus and migration to the neighbour-countries are the consequences. More debts is equal to less autonomy and firm constraint to orders.

Beyond the World Bank is financing controversial dam projects, which already have made millions of peoples to migrants by evacuation, overflowing and drainage. This is interesting, considering the German treatment of so called economic migrants. The World Bank is likewise responsible for the deforestation of Latin American rainforests to make space for pastured.

When a country is unable to pay back its loans, the debts will not be cancelled but transferred to the IMF. The problems, which World Bank and IMF will solve are not hunger, illness and destruction of environment, their aim is to tie up solvency! This solvency shall be guaranteed by the notorious Structural Adjustment Programs, which includes deregulation, liberalization and privatisation. The wages should be cut down, food subsidies should be cancelled, social expenses reduced and the national currency devaluated. Privatisation means mass droppings, more peoples below the poverty limit. By the devaluation of the national currency local consumption shall be reduced and exports intensified. But less consumption means more hunger!

Such a program has been imposed on the former federal republic of Yugoslavia, when its economical situation has been desolate and did has been one of the reasons for the Balkan war. A consequence of this program has been a wage dropping, thereupon a freeze of wages, and the inflation did runaway to 100%. Diverse riots did arise and as known a new nationalism of ethnic groups come into existence. Logically this nationalism has been supported by western countries, by propaganda, financial aid and by hasty acceptation of new states. Strikes and demonstrations in Serbia which did not have been caused by ethnic conflicts but has been directed against the results of IMF's debt policy have been strictly ignored by main stream media. Its worth to mention that Serbia refused to pay its debts in the beginning. The NATO war against Serbia has been a warning against all poor countries!

The first meeting of World Bank and IMF in Eastern Europe will be a risk for the Czech Republic, but also a chance. At the one hand they fear successful counter activities and blockades like in Seattle. At the other hand they can show, that they "belong to the family", that they are "worthy" for the west and that they can doubtless handle the situation:

For the last couple of month the Czech media (German publishers have a 50 percentage!) are propagating a negative image of the resistance against the WTO in Seattle.
  • Police will be present with 11 000 officers
  • a camp for activists has been offered in a Stadium (we won't join!)
  • during the summit there will be special NATO troops in The Czech Republic
  • peoples from eastern Europe countries will have problems with visa, especially from Russia and Ukraine.

The Czech Republic will try to manifest that it belongs to the West, and that it's ready to mark off to the East, to close it's borders.

Let us go to Prague, let us disturb their aim to dismantle any borders for transnational capital and to erect impassable borders for "leftover paupers", let us disturb the locking in of peoples in their misery!

 

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