So how does it work:
First the World Bank (WB) lends money to say Haiti. Then Haiti has to pay back the money plus a hefty interest on it. For some reason if Haiti cannot pay the interest then H has to borrow the money from the International Monetary Fund (IMF). The thing is IMF will not just lend money, they ask the government of H to do something called Structural Adjustment Program (SAP).
This SAP is to do with changing laws of the country. It has to grant tax breaks to transnational corporations, reduce wages, reduce the protection of local enterprises from foreign imports and foreign takeovers and privertize the countries economies eg. selling at a scandalously low prices their state owned mines, railroads and utilities like water, gas, and electrics to private corporations. On top of that H will have to open out the forests to clear for strip mining, transportation networks for the mines without due regard to the ecological damage. The health, education, transportation and food in the country suffers from cutbacks to save money for the IMF and WB loans and interests.
When the foreign imports glut the market the local produce has no competition. As the iMF rules that the government of H cannot give subsudies to the local farmers and countries like US gives it's farmers 70% subcidies the products which are imported cost far less money than the local products, eg. Ghana and its rice vs American rice. So the local farmers have to look for work elsewhere and migrate to the towns and cities. On top of the legal reduction of wages there is a work force hungry for work and the multinational corporations make use of this without mercy.
For the US companies like Disney, Wal-Mart, and J.C. Penny get a tax concessions and relocation expenses at the cost to the tax payers in US. And US has refused to sign the international convention for the abolition of child labor and forced labor helping these money grabbers, to use children as young as 12 years who work long hours and without insuarence against injuries, with impunity. Well that is how I understand it. It is so simple I cannot understand people like Blair and Brown does not do anything about it. Of course the rich countries get richer from this process and I should not complain as my benefits come from that shit!
I am a selfish person.If you cannot find the links in this blog, I have majority of them filed, Email me!
