A note to moderators: this is a very long article. I am sniping out excerpts so that readers can get a feel for the content - its a bit more than four paragraphs only because the entire article is so long.
This is a pretty significant piece that the really provides and excellent case study on how the IMF and World bank frequently work in pretty ugly ways, and it makes that case using what is on everyone's minds these days: Iraq.
Operation Corporate Freedom: The IMF and World Bank in Iraq
By Basav Sen, Mobilization for Global Justice, and Hope Chu, 50 Years is Enough Network
While the three-year U.S. occupation of Iraq faces a quagmire in operations, the economic forces of the International Monetary Fund (IMF) and the World Bank are moving full speed ahead implementing various economic reforms that will cause U.S.-based corporations - Bechtel, Halliburton, and others - to proclaim, "Mission Accomplished!" As the Bush administration touts its rhetoric of freedom and liberation, the IMF and World Bank are busily "liberating" Iraq's resources - oil and labor - and "freeing" Iraq's markets. The recent rise in fuel prices in Iraq and the subsequent riots are just a glimpse of what the future holds for Iraq under IMF and World Bank plans.
Stage One: Debt cancellation for Iraq, increased control for the IMF
Shortly after the start of the US occupation of Iraq, the Bush administration sent former Secretary of State James Baker on a pilgrimage to the capitals of other wealthy countries to seek cancellation of Saddam Hussein's odious debts. In a move that seemed inexplicable at first, the Bush administration was using the principle of odious debt to ask for cancellation of Iraq's Saddam Hussein-era debt.
Now, the political motivations behind this unexpected move are clear. The cancellation of Iraq's debt is a Trojan horse for the IMF, World Bank, and WTO to enter Iraq and start restructuring the economy further, continuing where Paul Bremer's Coalition Provisional Authority (CPA) left off. In a move reminiscent of the Heavily Indebted Poor Countries (HIPC) program, not only debt but debt relief is being used as a tool to restructure Iraq’s economy.
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Stage Two: The rule of the Coalition Provisional Authority
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Stage Three: Economic occupation by the IMF and World Bank
Not content with the extent to which Iraq's economy has already been restructured on neoliberal lines by the U.S., the IMF and World Bank have more designs for the Iraqi economy, and are using debt cancellation as leverage to compel Iraq to comply with their conditions. In addition, they have begun normalizing their relations with Iraq, thereby strengthening their hand in the country.
The IMF made its first-ever loan to Iraq in September 2004. In July 2005, the World Bank made its first loan to Iraq since 1973. This was followed by a $100 million World Bank loan for the education sector last November, and an IMF Standby Arrangement in December. The cancellation of Iraq's debt under the Paris Club plan, referred to earlier, is conditioned on Iraq entering into this Standby Arrangement, and implementing it to the satisfaction of the IMF.
Timing the IMF deal immediately after the elections is a move that appears designed to prevent Iraqis from having a say in the deal. If the deal had been signed before the elections, it would have been an election issue. "The timing of the decision spared politicians from voters' wrath," the Washington Post pointed out in a December 28 story.
Please take a few minutes to really read the full piece here:
http://www.50years.org/cms/updates/story/320Also, note that at the very bottom there is a copy of a joint statement released by:
General Federation of Iraqi Workers
Oil Unions Federation in Iraq / Basra
Federation of Workers Councils and Unions in Iraq
Kurdistan General Workers Syndicate Union / Erbil
Iraqi Kurdistan Workers Syndicate Union
As release statements are not copyrighted, I'll post the statement in its entirety here:
A Joint Statement Concerning the Programs of the World Bank and International Monetary Fund in Iraq by Iraqi Trade Unions
The Iraqi economy has been severely affected by decades of sanctions, wars and occupation. The Iraqi trade unions and federations believe in the capacity of the country with all its oil and mineral resources to provide a decent living standard for Iraqis.
The federations and unions consider that the wars and occupation have caused a dramatic decrease in the living and social standards of Iraqis and especially of workers.
The federations and unions stress the importance of complete sovereignty for Iraq over its petroleum and natural resources so as to develop them in a way that assures a complete reconstruction of the country. We wish to stress the following points in regard to the policies of the IMF and World Bank in Iraq:
1. Increasing transparency and additional representation for Iraq in the decision-making structures of the IFIs.
2. To stop imposing structural adjustment conditions for loans.
3. Agreeing to provide funding for public services and state-owned enterprises without demanding their privatization.
4. Canceling debts owed by Iraq that have resulted from the policies of the former regime.
5. Rejecting the reduction of spending on social services especially the elimination of government support for the food distribution system or the reduction of the number of items covered.
6. Strongly rejecting the privatization of publicly owned entities and especially of the oil, education, health, electricity, transportation and construction sectors.
7. Rejecting the increase in the price of petroleum products, considering the negative impact of the increase on the living standards of Iraqis.
8. Adopting a new labor law and a pension and social security law that assure workers' rights and are in conformity with international labor standards and human rights conventions. The World Bank and the IMF must also respect these standards.
The unions and federations that have signed this statement announce the formation of a permanent coordinating committee that will make its positions known to the Iraqi Government and to the IFIs. They also demand that the IFIs engage in dialogue, discussion and negotiations with the trade union federations regarding their policies in Iraq.
Finally, they request the assistance of international trade union organizations to provide all possible support to the above-mentioned demands.
(Signed)
General Federation of Iraqi Workers
Oil Unions Federation in Iraq / Basra
Federation of Workers Councils and Unions in Iraq
Kurdistan General Workers Syndicate Union / Erbil
Iraqi Kurdistan Workers Syndicate Union
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