sataniccapitalist reblogged
sataniccapitalist reblogged
The “debt system” is gathering steam In Asia, Africa, Latin America and the Caribbean, just as in the highly industrialized countries, after going through several fundamental changes over the past 40 years. Mainly since the outbreak of the Third World debt crisis in the early 1980s.
Austerity policies aiming for structural adjustment encourage private debt
Structural adjustment programmes were widely implemented on the pretext of the public debt crisis. Prices of the Third World’s exports to the global market plunged during 1981-1982 and the US Federal Reserve increased interest rates during 1979-1980. The combined effect of these two factors led to this crisis. |1| The late 20th century saw the domination of austerity policies and structural adjustment programmes in most countries, particularly in the so-called “developing” countries and the former Eastern bloc.
International institutions imposed these structural adjustment programmes, with the willing complicity of right-wing governments in order to implement a series of counter-reforms conducive only to the interests of large private enterprises, the great powers and local ruling classes. |2| These policies have degraded the living conditions of a large section of the population, particularly in the agricultural regions but also in the urban areas. What are the key moves that led to an increasing dependence on private debt for survival? The following can be listed:
- Withdrawal of subsidies from many basic consumer goods (food, heating fuels, etc.) and services (electricity, water, transport), thus increasing the cost of living;
- Cost recovery policy in the education and health sectors, forcing the lower classes to borrow in order to pay for tuition and health;
- Abolition / privatization of public banks, especially those lending to farmers, placing the latter at the mercy of usurers and /or microcredit organizations;
- Abolition of public agencies that bought agricultural commodities from farmers at pre-fixed and guaranteed prices. This abolition proved to be fatal and led to debts when the prices of agricultural products fell on the local / global market;
- Abolition of government-controlled cereal storages, which used to provide food security in the event of bad harvests and other adversities. This step led to sudden and speculative increases in food prices, compelling families to incur debts to buy food at any cost;
- Opening up the domestic market to imports and foreign investment: the competition devastated many local companies, and the small producers (farmers, craftsmen, etc.) were ruined;
- Intensified campaigns for green revolution and chemical inputs (pesticides, fertilizers, etc.) or genetically modified seeds (GMOs). This compelled farmers to borrow to buy seeds, pesticides, herbicides and fertilizers in the hope that they would be able to repay once the crops were harvested and sold on the market;
- Land privatization (see counter-reforms in Mexico in 1993, in Egypt at the same time and in many other countries);
- Landgrabs by foreign owners;
- Curtailing government sector jobs;
- Wage freezes and cuts;
- Generalization of VAT and indirect taxes;
- Pension cuts (wherever applicable).
Together, these counter-reforms and actions have given rise to a high level of indebtedness among the working classes. This encompasses both daily consumptions and small investments in the informal urban sector as well as among small and medium-sized farmers.
sataniccapitalist reblogged
PRF REVIEW: Courts, Colonialism & Bernie Sanders
Andrew Mercado-Vázquez of Puerto Rico Forward reviews landmark court rulings that have defined Puerto Rico’s “commonwealth” status.
Support the show on Patreon: https://patreon.com/puertoricoforward
