Have you Ever been Swept Off Your Feet?

In both cases – whether the bubble was inflated with positive or negative energy – the participants in the bubble are being swept away further and further away from actual physical reality and start to see everything either ‘extremely negatively’ or ‘extremely positively’ – neither experience is grounded in reality – because the physical is neither positive or negative – it just is what it is.

And Then You Crash – Meconomics

In this little series, we’ve been investigating the phenomenon of inflation, how we in our daily lives participate in ‘inflating our reality’ and so, how we are on a personal level participating in the same principles/dynamics that we see playing out on a bigger scale when it comes to inflation, speculative bubbles and financial market crashes.

Welcoming New Life with Living Income Guaranteed

Comfort, security and nurturing are all things we wish are present when a baby comes into this world. Yet, these conditions are not a reality for many babies, as parents themselves like these things in their lives. In Pietermaritzburg, the capital of KwaZulu Natal province in South Africa, 3 to 5 babies are…

Humanity Washed Ashore

This was an excerpt of just one of the stories about the boy. Over the last few days, dozens have been written and published on various major news sites. What is more striking than the content of the posts, is the comments that are left on these articles. What is humanity’s response to such images, to such news?

Voting Fun – What does it Feel Like to Have a Say?

Now – before such increased direct political participation is a reality – let’s do a little test to see what it feels like. So – here are some mock-questions where you’re asked to give your input. Imagine that this relates to your direct reality (eg. your town) – and your answer has a weight that influences the outcome of the decision. Of course, in reality…

Showing posts with label International Monetary Fund. Show all posts
Showing posts with label International Monetary Fund. Show all posts

30 September 2012

Day 108: Virtual Democracies


This Blog is a continuation to:
Day 106: Structural Adjustment

In the above-mentioned blog-post the main types of economical reforms that are demanded by the IMF and the World Bank from developing countries have been laid out. Though, the IMF/World Bank don't keep to only demanding economic reforms. They also demand political reforms. Specifically, authoritarian regimes are asked to install liberal democracies in their countries - and if they don't, they won't receive further aid.

Once this demand for political reforms was declared, many, if not most, African countries started holding elections, started allowing opposition parties, started allowing independent media and freedom of speech, etc. On the surface, it seemed like the whole of Africa had converted to liberal values and principles - however, how substantial were the democracies and to what extent were they just an image, a projection, to keep the rich nations happy and willing to continue providing aid?

The holding of elections in African nations has often being applauded as a sign of successful democratic transition. However, most elections were problematic and the validity of their outcomes sincerely doubtful. Incumbents regimes (incumbent means 'currently in power') in many cases manipulated the electoral process in any way they could to be able to remain in power. They handpicked partisans to serve on so-called 'independent' electoral commissions, they denied opposition parties access to state-owned media, they used state resources to fund their electoral campaigns, invented new electoral rules and qualifications to exclude critical segments of the opposition and used the police and other security agencies to intimidate and harass opposition candidates. This frustrating of the electoral process often led to the boycotting of elections and the rejection of election results.

One of the consequences is that because the incumbent regime was now apparently re-elected by the people, the authoritarian rulers were given a form of legitimacy, further anchoring themselves into their power-seats.

In terms of opposition parties - as has already been shown - they often did not have a real chance at winning the elections. One of the problems was self-inflicted, where every disgruntled elite and aspirant president formed their own opposition party. At some point in Zaire there were over 200 opposition parties. The opposition parties did not really have a clear agenda or standpoint, except that they were 'against' the current rulers - and thus they didn't provide any desirable alternatives. Also, any 'loss of votes' on the part of the incumbent regime were distributed amongst all of these different opposition parties, not allowing any of them to gather sufficient votes to stand as a real 'threat' to the incumbent regime.

The upholding and protecting of human rights is seen as an important part of democracy - yet, in the 'newly converted' nations, human rights have continued to be breached - where the rights of outspoken critics, members of the opposition and independent media to free speech, association and fair hearings were regularly denied - where they were even harassed and detained without charge or trial for extended periods of time.

Accountability to the population is what democracy is all about - yet this is often completely absent in the African 'democracies'. They are generally entirely insensitive of the demands and welfare of their citizens, corruption, clientelism and violations of the rule of law are the general way of doing things. Furthermore, to what extent can national governments be accountable to their population if their loyalties lie with international donors and agencies upon which they depend for money?

We really only mentioned a few points in this blog - but this alone should clarify how the newly reformed African 'democracies' are in fact still the same old authoritarian governments, dressed up in a democratic costume. On the surface they will play the game of elections and opposition parties, but when it comes down to it, any method is used to remain in power and do whatever benefits themselves.

Such hypocrisy is, of course, to be expected if change is imposed from the outside. I don't know what the international community was thinking in forcing others to adopt democratic 'forms' of government. Yes, the form has changed, but the content is still the same. Change must be sincere and driven from within to be valid and long-lasting. To say: become democratic or you are cut off is not going to give birth to true democracy - anyone can see that...

Source:
Osaghae, E. 1999. Democratisation in sub-Saharan Africa: faltering prospects, new hopes.  Journal of Contemporary African Studies. 17(1): 5-28. Reprinted with permission from Dalro.

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17 September 2012

Day 98: The Unholy Trinity

The World Banks, the International Monetary Fund (IMF) and the World Trading Organization (WTO) – together they form the ‘Unholy Trinity’.
Together these three organizations form a vast and extensive set-up that enforces a neo-liberal economic ideology through conditional lending and foreign aid





The World Trade Organisation

At the end of World War II, it was proposed that a global economic organisation ought to be established. This organisation – the International Trade Organisation (ITO) – would have the task of establishing rules relating to world trade, business practices and international investment.
Through opposition of the United States though, the ITO never came into being.

Later on, some twenty-three countries entered negotiations in relation to tariff reductions. These negotiations led to tariff reductions affecting roughly one-fifth of world trade. Among the tariff reduction negotiations, other agreements were reached on rules of trade. These agreements become known as the ‘General Agreement on Tariffs and Trade’, also known as ‘GATT’.
Through the establishment of the GATT, trade barriers were gradually brought down and world trade started growing. Throughout the years, non-tariff trade related barriers started demanding more and more attention as the tariff subject was becoming of lesser importance. It was decided that a new organization should be set up to replace the GATT. This organization is now known as the World Trade Organization (WTO).
The WTO carried over its key principles from GATT: non-discrimination and national treatment.
These two principles are integrated in the overall mission of the WTO, which encompasses the promotion of fair competition, insurance of market access, encouragement of economic development and economic reform.


The World Bank & the International Monetary Fund

Besides the WTO, two other global organisations were set up after the events of World War II: the World Bank and the International Monetary Fund.
To avoid re-experiencing a complete collapse of economic relations which had followed the First World War, discussions were held between countries regarding the shape of post-war international economic order.
The end result of their regular discussions was the formation of a framework of what would become the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank).


The function of the IMF is to provide its members loans under different programmes (short, medium and long-term). Each member country is charged with a particular quota for their membership which is in proportion with their economic power. The same way, will the voting power of a country within the IMF and World Bank depend on their economic wealth. As a result, the United States holds for instance 20% of all votes – while 43 African countries together hold less than 5%.


The IMF’s most prominent role is to intervene, on request, whenever a country is experiencing a crisis in its international payments. The price countries pay for a loan is an agreement by the borrowing country to make fundamental changes to its economy (which generally means making amendments to the government and its relation to the free market) – to prevent the reoccurrence of the same problem. These requirements are known as “IMF conditionality” or “structural adjustment policies”.


Originally the World Bank was known as the International Bank for Reconstruction and Development (IBRD). The name clearly indicates that the main purpose for creating the organisation was to assist with the reconstruction of countries that had been badly affected by World War II. As time went by the countries affected became more stable, it was suggested that undeveloped countries could benefit from capital investment to speed up the development process. In the meantime the IBRD has become one of five subgroups within the World Bank. Each group has a different focus – though all groups are related towards the development of poor countries, and only developing countries are allowed to borrow from the World Bank (unlike the IMF).

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