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IMF to Haiti: Freeze Public Wages
Since a devastating earthquake rocked Haiti on Tuesday--killing tens of thousands of people--there's been a lot of well-intentioned chatter and twitter about how to help Haiti. Folks have been donating millions of dollars to Wyclef Jean's Yele Haiti (by texting "YELE" to 501501) or to the Red Cross (by texting "HAITI" to 90999) or to Paul Farmer's extraordinary Partners in Health, among other organizations. I hope these donations continue to pour in, along with more money, food, water, medicine, equipment and doctors and nurses from nations around the world. The Obama administration has pledged at least $100 million in aid and has already sent thousands of soldiers and relief workers. That's a decent start.
But it's also time to stop having a conversation about charity and start having a conversation about justice--about recovery, responsibility and fairness. What the world should be pondering instead is: What is Haiti owed?
Haiti's vulnerability to natural disasters, its food shortages, poverty, deforestation and lack of infrastructure, are not accidental. To say that it is the poorest nation in the Western hemisphere is to miss the point; Haiti was made poor--by France, the United States, Great Britain, other Western powers and by the IMF and the World Bank.
Now, in its attempts to help Haiti, the IMF is pursuing the same kinds of policies that made Haiti a geography of precariousness even before the quake. To great fanfare, the IMF announced a new $100 million loan to Haiti on Thursday. In one crucial way, the loan is a good thing; Haiti is in dire straits and needs a massive cash infusion. But the new loan was made through the IMF's extended credit facility, to which Haiti already has $165 million in debt. Debt relief activists tell me that these loans came with conditions, including raising prices for electricity, refusing pay increases to all public employees except those making minimum wage and keeping inflation low. They say that the new loans would impose these same conditions. In other words, in the face of this latest tragedy, the IMF is still using crisis and debt as leverage to compel neoliberal reforms.
For Haiti, this is history repeated. As historians have documented, the impoverishment of Haiti began in the earliest decades of its independence, when Haiti's slaves and free gens de couleur rallied to liberate the country from the French in 1804. But by 1825, Haiti was living under a new kind of bondage--external debt. In order to keep the French and other Western powers from enforcing an embargo, it agreed to pay 150 million francs in reparations to French slave owners (yes, that's right, freed slaves were forced to compensate their former masters for their liberty). In order to do that, they borrowed millions from French banks and then from the US and Germany. As Alex von Tunzelmann pointed out, "by 1900, it [Haiti] was spending 80 percent of its national budget on repayments."
It took Haiti 122 years, but in 1947 the nation paid off about 60 percent, or 90 million francs, of this debt (it was able to negotiate a reduction in 1838). In 2003, then-President Aristide called on France to pay restitution for this sum--valued in 2003 dollars at over $21 billion. A few months later, he was ousted in a coup d'etat; he claims he left the country under armed pressure from the US.
Then of course there are the structural adjustment policies imposed by the IMF and World Bank in the 1990s. In 1995, for example, the IMF forced Haiti to cut its rice tariff from 35 percent to 3 percent, leading to a massive increase in rice-dumping, the vast majority of which came from the United States. As a 2008 Jubilee USA report notes, although the country had once been a net exporter of rice, "by 2005, three out of every four plates of rice eaten in Haiti came from the US." During this period, USAID invested heavily in Haiti, but this "charity" came not in the form of grants to develop Haiti's agricultural infrastructure, but in direct food aid, furthering Haiti's dependence on foreign assistance while also funneling money back to US agribusiness.
A 2008 report from the Center for International Policy points out that in 2003, Haiti spent $57.4 million to service its debt, while total foreign assistance for education, health care and other services was a mere $39.21 million. In other words, under a system of putative benevolence, Haiti paid back more than it received. As Paul Farmer noted in our pages after hurricanes whipped the country in 2008, Haiti is "a veritable graveyard of development projects."
So what can activists do in addition to donating to a charity? One long-term objective is to get the IMF to forgive all $265 million of Haiti's debt (that's the $165 million outstanding, plus the $100 million issued this week). In the short term, Haiti's IMF loans could be restructured to come from the IMF's rapid credit facility, which doesn't impose conditions like keeping wages and inflation down.
Indeed, debt relief is essential to Haiti's future. It recently had about $1.2 billion in debt canceled, but it still owes about $891 million, all of which was lent to the country from 2004 onward. $429 million of that debt is held by the Inter-American Development Bank (IDB), to whom Haiti is scheduled to make $10 million in payments next year. Obviously, that's money better spent on saving Haitian lives and rebuilding the country in the months ahead; the cancellation of the entire sum would free up precious capital. The US controls about 30 percent of the bank's shares; Latin American and Caribbean countries hold just over 50 percent. Notably, the IDB's loans come from its fund for special operations (i.e. the IDB's donor nations and funds from loans that have been paid back), not from IDB's bonds. Hence, the total amount could be forgiven without impacting the IDB's triple-A credit rating.
Finally, although the Obama administration temporarily halted deportations to Haiti, it hasn't granted Haitians temporary protected status (TPS), which would save them from being deported back to the scene of a disaster for as long as 18 months, allow them to work in the US and, crucially, send money back to relatives in Haiti. In the past, TPS has been given to countries like Honduras and Nicaragua in 1998 after Hurrican Mitch, but it has never been extended to Haitians, even after the 2008 storms, presumably because immigrations officials fear a mass exodus from Haiti.
But decency, as well as fairness, should trump those fears now. As Sunita Patel, an attorney with CCR, told me, "We have granted TPS to El Salavador, Honduras, Nicaragua, Somalia and Sudan following natural disasters. To apply different rules here would fly in the face of the administration's efforts to build good will abroad."
(UPDATE: Obama administration has granted Temporary Protected Status to Haiti. This is a great relief to Haitians in the US and a victory for those who pressured the administration to do so.)
- Posted in



21 Comments so far
Show AllThe opinion within the capitalist side of US consciousness is that the people of Haiti, after this disaster passes, pick themselves up by their bootstraps and start acting in an industrious way. The problem is, the people of Haiti have no boots. Most of them are lucky if they have shoes.
Hell, everyone knows no one -- not even Indians -- work harder than Haitians. They are loved by those that hire immigrants (legal and illegal). It ain't lack of drive that's Haiti's problem. Its dependence upon a greedy America that is. With 60% of exports to the US and a deliberately destroyed local agricultural base with 75% of Haitians small scale farmer families, of course they are poor. They got the lowest minimum wage in the hemisphere. And now this freeze.
Arg!
Meanwhile the dying goes on...
American Friends Service Committee http://www.afsc.org/
American Red Cross: http://www.redcross.org/
Artists for Peace and Justice: http://www.artistsforpeaceandjustice.com/
NetHope: http://www.nethope.org/
Lambi Fund for Haiti: http://www.lambifund.org/
Save the Children: http://www.savethechildren.org/
World Vision International: http://wvi.org/wvi/wviweb.nsf
Care: http://www.care.org/index.asp
MercyCorps: http://www.mercycorps.org/
Partners in Health: http://twitter.com/PIH_org
Unicef: http://www.unicef.org/
Doctors Without Borders: http://doctorswithoutborders.org/
Parners in Health: http://www.standwithhaiti.org/haiti
Ofram: http://www.oxfam.org/en/pressroom/pressrelease/2010-01-13/large-earthquake-haiti
RN Response Network: https://secure.ga1.org/05/rnrn_relief_fund
National Nurses United has launched a relief effort to send over 7,000 registered nurses to Haiti. There's just one problem: the cost of sending them. Please donate today at www.SendaNurse.org. Every dollar you donate goes toward the resources nurses need to care for the survivors of this tragedy.
Pass it on.
Gary
NO DEBT RELIEF FOR BLACK PEOPLE. They must be made to bleed to suffer and to die because we are the WHITE RACE, the MASTER RACE and our richfilth MASTERS as GODS OF THIS WORLD, DEMAND their blood, the marrow from their bones and the bones of their children as a burnt offering. It is the ONWARD MARCH OF PROGRESS as they turn the planet first into a charnel house and then into a charred cinder.
And of course, our MASTERS, the KINGS OF EARTH haven't forgotten the lowly Americans. Within 5 years we will look just like Haiti because what MASTER does first to the Black People abroad, then he does to the Black People at home - and after he does them, well then there's only the good White Folk, so he will eat them too. MASTER IS ALWAYS HUNGRY FOR THE BLOOD OF CHILDREN. It's his nature.
Shall we give THE MASTER a stomachache and fight back? Let's roll.
Gary
gdgoodman 10:34 am - two historical methods for 'de-lousing' from RICHFILTH ANIMALS -
1) Cut off their heads, seize their property and 'holdings' and forget they ever existed; or, 2) Tax them out of existence as was the intended outcome of the Roosevelt taxation policies- 90% on earned income over $1mn ($3-6mn adjusted); 53% on unearned income (richfilth animals never hold a job-they live from their 'holdings'; and 50+% tax on Mega-Estates. As a direct result of these policies the richfilth animals were nearly moribund as a social class by '65 and "we" (white males) had the greatest distribution of wealth ever seen in 6000 years of human history. White America panicked because richfilth animals are the glue to bind the oppression of white male supremacy, gender slavery, and constant war together - so the white majority fed the richfilth animals the bodies of working class men, women, and children to bloat them back up to their former 'stature' - and now they are going to eat us. Can't run a society based on Exclusion, e.g. Male Supremacy, Gender Slavery, and Constant War without a massive structure of daily oppression - Richfilth animals fill that role and White America brought them back for just that purpose. Gotta keep those Minorities and Females in their place.
Got to especially keep the working class in line -- as they've been the most screwed over the last forty years -- and revolts come from the working class and middle class. Not the poor, too downtrodden and disenfranchised and despondent; but those that have had a taste of the good life and want it back.
White Americans are running scared now. Looking for people to blame. And lord help us they've found SOME of the scoundrels in Washington, DC. But unfortunately the Tea Bag Party has grabbed hold of this discontent to push a reprobate list of issues. Ignoring many of the real villains. And they are growing, being to more effectively organize at the grassroots level.
See: When You Throw a Tea Party and No One Comes: Why It's Hard to be a Right-Wing Activist By Denver Nicks:
http://www.alternet.org/story/145145/when_you_
throw_a_tea_party_and_no_one_comes:_why_it's_
hard_to_be_a_right-wing_activist
So where are the Progressives? When is our national convention?
Yeah when are we getting off our butts and getting out there?
Meanwhile the dying goes on...
American Friends Service Committee http://www.afsc.org/
American Red Cross: http://www.redcross.org/
Artists for Peace and Justice: http://www.artistsforpeaceandjustice.com/
NetHope: http://www.nethope.org/
Lambi Fund for Haiti: http://www.lambifund.org/
Save the Children: http://www.savethechildren.org/
World Vision International: http://wvi.org/wvi/wviweb.nsf
Care: http://www.care.org/index.asp
MercyCorps: http://www.mercycorps.org/
Partners in Health: http://twitter.com/PIH_org
Unicef: http://www.unicef.org/
Doctors Without Borders: http://doctorswithoutborders.org/
Parners in Health: http://www.standwithhaiti.org/haiti
Ofram: http://www.oxfam.org/en/pressroom/pressrelease/2010-01-13/large-earthquake-haiti
RN Response Network: https://secure.ga1.org/05/rnrn_relief_fund
National Nurses United has launched a relief effort to send over 7,000 registered nurses to Haiti. There's just one problem: the cost of sending them. Please donate today at www.SendaNurse.org. Every dollar you donate goes toward the resources nurses need to care for the survivors of this tragedy.
Pass it on.
Gary
I wonder how much time Katie Couric has spent on her earthquake coverage visit to Haiti talking about how the world is going to "lend" rather than give Haiti $100mm and just how the Haitians are supposed to pay that back. Do you think she'll interview the people on the street asking them how they intend to pay that back?
KC is nothing more than a cleverer Palin. Ignore both.
Haiti's wages are low enough, thank you IMF, you spawn of the devil. Lowering them even more is just plain shitty behavior by those who have too much already.
The IMF should be abolished. Violently, if need be. Every country they have "loaned' money to have seen their standard of living plummet, their rich get even richer, and their poor slide into incredible poverty. The IMF is nothing but a GD Neocon watering hole, and no one else gets to drink from it, regardless of how thirsty they are. If they DO let you have a sip, then you have to destroy your future to get what you need to survive.
The IMF was founded after WWII as a way to screw the emerging countries of Europe. Those countries, though, had lived through their own corrupt neocons before and during the war and wanted nothing to do with such a miserable scam. So the IMF turned their attention to the third world, where they have been ruining lives and destroying cultures ever since.
The IMF is a vampirish organization that deserves to have a stake beaten through it's miserable heart. It is responsible for more devastation and heartbreak than probably any other organization in the world. They are truly, truly evil and live by greed and hate of humanity above all.
The IMF should be abolished, and it's leaders sent to prison for the rest of two eternities. They deserve nothing more and nothing less.
IMF waited less than a week as a decent interval before launching the Shock Doctrine attack.
The banksters are desperate to get some new debts on the books that can be scammed as "assets."
The US is the big chair on the IMF.
The US is controlled by the Corporations.
A country ruled by a Corporate Elite is Fascist.
Ergo, the US is a Fascist State, and the IMF is a tool of Fascist domination. QED.
Now, what are we going to do about it?
While most people here seem clued in to what is really going on in Haita with 10,000 heavily armed US Marines and with "Loans" tied to slashing wages even further so that Corporations can make more profits...
How much of this information penetrates the masses that do not frequent these boards?
I am afraid it very little.
fareed zakaria's program sunday... which aired 2 times sunday afternoon cnn... had a good opening segment... and a quick but feeble interview saturday afternoon... with a professor no-name with extensive historical context... also on cnn...
but... most folks were probably watching nfl playoffs... or the golden globes...
you can tell 90% are clueless of history by reading the comments after the stories on cnn.com...
Sorry Mr. Kim but you are a bloody "Johnny-come-lately". Naomi Klein has already sounded the same alarm several days ago. You did not even have the professional decency to quote her.
The IMF, the World Bank and the WTO
all need to be abolished. while talking about "helping the poor" since they started, they have busily set about making the poor more poor and hungry, AND demanding more money to be sent from Haiti to the bank. Then to meet their interest payments the poor people must privatize health care, school, water etc.
besides it's not just Haiti- every poor country in the world is subjected to the same cruel process.
'Dirty IMF, filthy IMF' -- Bruce Cockburn
'Dirty IMF, filthy IMF' -- Bruce Cockburn
Obama's granting of TPS is the one good thing he has done in his whole first year in office.
One.
And it took a disaster to bring it out of him.
Are we saying that the destructive policies of the IMF have been more fully exposed by the earthquake tragedy in Haiti? It would mean that fifty plus years of Merkan "progress" in globalized economics theory and practice is defunct. Poof, up in smoke! What a gargantuan waste. Merkans might as well have spent all that time shuckin corn. Now we understand what "one step forward, two steps backward" really means.
By the way. We on the far-left don't like to rain on just any parade. It's specifically the Friedmanite laissez-faire capitalist parade that needs a drenching.
An earthquake AND International Loan Sharks? Alas, poor Haiti!
On November 11, 2009 3:17 PM CNN MONEY.com posted an article from Fortune magazine entitiled "Americans are overpaid". I realize that this will come as a shock to a lot of American working people, but they are not just after the Haitians, they are after us also. Until the American workers stand up and say no more, this is going to become the world wide norm!
Don't believe me? Google CNN MONEY/Americans are overpaid
Also notice, that as usual American workers are expected to lower their standard of living down to that of the third world!