world in September 1982 shows the power that lies in Fund. It is the last resort for who have been deliberately imperialist masters.
It can and does impose the most stringent and assistance — countries like population. The burden of these astronomical debts falls on the poorest sectors The rich get richer and IMF policies make sure that the multinationals and bonanza. The IMF perpetuates and makes in the first place. A valuable Poverty Brokers: the IMF examines the analysis and conclusions of this 'SOME ROB YOU with a sixgun, some with a fountain pen.' So runs the Ballad of Pretty Boy Floyd, popularised fifteen years ago by Joan Baez. The America Bureau's excellent book shows how the fountain pen has served the grey-flanne! cowboys of the Monetary Fund - and why they are now reaching for the six-gun.
The book is the latest from the non-profit making Bureau, set up in 1977. Other titles include Citicorp bank Amenica Chase Manhattan Man. Hanover Morgan Guaranty Chile 1983).
Barclays Westminster Midland Lloyds in tne rmanciar runes, simay 1yosr.
Argentina Brazil Mexico Total Chile Perator Total ( countries the Malvinas war.
investment them are going bankrupt.
foreign investors.
of the maintaining profits.
Strenuous Foreign spent according Western accounting When he left.
worldwide boycott.
Latin returns, and gave suited Wing the Malvinas war, Jenny OUTSTANDING BANK LOANS TO LATIN AMERICA Brazil Mexico venezuela Utners+ Total 4.4 3.3 2.0 2.0 0.0 4.1 + Includes disclosed exposure of more than 1% to Argentina, Yugoslavia and Source: The American Banker (quoted in The New York Times, 18 March BRITISH BANKS (€ billion)
¡otal Loans l( Equity Latin America Reserved 3.0 2.0 Source: Published Accounts and International Bank Credit Analysis (quoted DEBT FIGURES, RESCHEDULING & IMF ASSISTANCE — 1982/3 I exports 38.5 19.0 84.0 80.0 31.0 202.51 69.02 29.9 17.0 3.4 28.5 13.0 282.8 1U1.I 51.0 Pearce's Under the Eagle and her joint book with Martin Honeywell on Between 1970 and 1978, foreign the Less Developed Countries (LDCs) earned $2.3m for every million invested. This explains why they stay underdeveloped, why they can't pay their debts, and why the banks who staked all on exploiting Vicious dictators like Nicaragua's Somoza and Chile's Pinochet offered sky high profits with no strings to The West propped them up provided they imposed 'sensible' economic policies on the poor countries concerned, thus The wasn't always SCENESI standards. 1ry bomoza was lent coum despite strenuous representations from the Sandinistas just before his overthrow.
The cleaned banks and took the cash with him.
really Ente however, who demanded repayment from the new government on pain of This kind of approach got high high the illusion of 5000 growth and even stability in countries like Brazil and Argentina, said to be escaping underdevelopment and catching up with the West. Indeed, durseveral British socialists 'discovered' Argentina had become an 'imperialist country' in its own right. The example of Jamaica to which the authors devote a chapter, tom Total a:
Equity down.
IMF Assistance fUss billion may 1985 1.6 (standby - 15 months) * 0.5 Compensatory Financing Facility 4.9 Extended Fund Facility * 0.5 Compensatory 3.8 Extended Fund Facility U.S standby " z years)*0.3 Compensatory 0.1 (standby) rinancing racity 0.2 (sandby - 1 year)
0.4 (standby - 2 years)
11.S shows how such growth was often built - almost literally - on sand Foreign investment in the LDCs is exports, which yield foreign currency during the boom returns. Local industrial production, usually in branch plants of multinationals or under foreign license, could not expand beyond the narrow limits set by the poverty and low purchasing power of populations living on starvation wages. The Poverty Brokers high Areentina Brazil Mexico Bahamas Bova Chile Colombia Costa Rica THE POVERTY BROKERS Latin American Bureau £3.25 DEBT PER CAPITA: 1960, 1970, 1980, 1982 1960 19/0 In.a n.a 1900 1982 1,392 1,144 •n.a 1,552 1,118 1,578