17 Feb, 2013
Nick Dearden, Jubilee Debt Campaign
Groups like Jubilee which have worked on ‘Third World Debt’ have
campaigned against illegitimate debt for many years. Debt resulting from
the sales of weapons to some of the late twentieth century’s most
horrific regimes; from vanity projects built by dictators; and debt
payments which impoverish millions of people all represent clear
examples of debts which are illegitimate. But, we’re often asked, how do
these types of debts possibly relate to the people of Europe today?
Last night we had a talk from Myriam Bourgy from CADTM who gave some
clear answers. First illegitimate debt is about imposed authority. There
couldn’t be a clearer example of imposed authority than what’s
happening in many European countries today. Austerity measures and
privatization are being imposed by the totally unelected Troika which
has no legal authority to do what it’s doing.
These measures have either been passed in conditions of serious civil
strife, or by puppet governments that themselves have no legitimacy or
accountability to their people. Laws have been passed which bind
democratic governments far into the future, whatever the people decide
at subsequent elections.
Second, illegitimate debt comes from useless projects which exist to
suck wealth out of the public sector and have no benefit for the vast
majority in a country. We used to talk about ‘white elephant’ projects
in Africa. What is the difference to Public Private Partnerships, which
boast a wealth of useless projects – from airports that have never seen a
plane and motorways that have never seen a car, to hospitals that are
bankrupt? These projects have been used to make a killing by
‘investment’ firms, while leaving a mountain of hidden debt for the
public.
Then there’s the impact of repaying the debt. For years, the payments
of debts has sucked wealth out of Southern countries that could have
saved the lives of millions of people if it had been spent on
healthcare, agricultural support and such like.
Today the same repayments are taking free healthcare from those who
once had it, making homeless those who can’t afford their inflated
rents, and causing sharp rises in suicide and murder rates. A pillar of
democracy – workers rights to collectively bargain for their terms and
conditions – has been removed in Greece, Italy and Spain. If human
rights were properly enforced in the world, politicians would be in
court for these violations.
If anyone still thinks Europe’s debt is a million miles away from the
illegitimate debt of the South, we should remember that the Latin
American debt crisis also began with massive bank bail-outs, with the
help of the IMF. Ecuador learnt from its experience and has now passed a
constitution which prohibits the socialisation of private debts. In
other words, a bank bail out in Ecuador, of the sort we’ve seen right
across Europe, would be unconstitutional today. Any resuscitation of
democracy in Europe will need to learn similar lessons.
20-2-2013
Posted by Χωρίs Χρέος Χωρίς Ευρώ / No Debt No Euro
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