#michael parenti

"The World Bank and IMF are supposed to assist nations in their development. What actually happens is another story. The World Bank will lend money to this or that country to finance a huge dam project that displaces thousands of families while providing cheap irrigation for export agriculture and cheap power for a private company. Or a poor country may borrow from the World Bank to build up some aspect of its economy. Should it be unable to pay back the heavy interest because of declining export sales or some other reason, it most borrow again, this time from the IMF. But the IMF imposes a 'structural adjustment programme' (SAP), requiring debtor countries to grant tax breaks to the transnational corporations, reduce local wages, and make no attempt to protect native enterprises from foreign imports and foreign takeovers.

In accordance with SAP rulings, the debtor nations are pressured to privatise their economies, selling at scandalously low prices their state-owned mines, railroads, and utilities to transnational corporations. They are forced to open their forests to clear-cutting and their lands to strip mining, without regard to the ecological damage done. The debtor nations also must reduce or eliminate subsidies for health, education, transportation, and food, spending less on public needs in order to have more money to meet debt payments. So it is that throughout the Third World, real wages have declined, and national debts have soared to the point at which debt payments absorb almost all of the poorer countries' export earnings—leaving the debtor even less able to provide for the minimal needs of its population."

Dr Parenti explains how the common treasury of the people are used to subsidise private war machine and loot of imperialism goes to those private interests. All while propping up regimes to abroad to secure the labour, resources and stifle competition abroad. Source: Michael Parenti speaks at the University of Colorado, Boulder: "US interventionism, the 3rd world, and the USSR" April 15, 1986.