INPEG statement
General Position of the Initiative against Economic Globalisation (INPEG)- Prague 2000 issued on the occasion of the World Bank and the International Monetary Fund summit in Prague
About twenty thousand of the world's bankers, economists and investors will arrive on 26. - 28. September 2000 to Prague in order to take part in the 55th Annual Meetings of the World Bank Group (WB) and the Board of Governors of the International Monetary Fund (IMF). This prestigious event of the global economic elite, the first one of its kind in the Central East Europe, is of a special importance. The delegates will gather so as to propose the scheme of the complete liberalisation of the global economy, which they present as a single instrument for the solution of the world's problems. We do not endorse this opinion. On the contrary, we consider the economic globalisation as well as the policy of WB and IMF as a major cause of the serious problems of today's world. There is no chance for the majority of mankind living in destitute or as an opportunity for the deflection of the global environmental crisis. This summit is a challenge to those who are concerned about the destiny of today's world. For IMF and WB influence it negatively for more than 50 years. In this connection we remind that the summit will cost at least 935 million crowns from the public money which are desperately needed in the social programs, healthcare, education, environmental protection, etc.
In the process of economic globalisation, which involves progressive curtailment of the state influence upon the circulation of transnational capital, play both institutions crucial roles. By means of its economic policy does IMF as well as WB and its groups open the developing countries (among which they count with regard to its GNP also the Czech Republic) to the foreign investors and their speculative interests. IMF and WB openly acknowledge that they are led only by the economic regards and thus willingly support various authoritative or dictatorial regimes. No wonder these institutions are not democratic themselves - the decision rights of single members depend upon amount of invested money according to the principle "more dollars, more votes."
Within the framework of the so called Structural Adjustment Programs the IMF and the WB determine strict conditions for providing loans to the developing countries including deregulatisation, liberalisation and privatisation. These measures strengthen the position of the transnational capital but worsen the situation of the majority of population in the developing world. The removal of social and environmental regulations (which might "discourage" the investors) and cuts in public spending result in the inaccessibility of health care and education, sharp increases of living costs, job-reductions, unemployment and curtailment of union rights. The impacts on agriculture are especially devastating as productions aimed at local self-sufficiency are suspended and the countries are compelled to
raise monocultures for export, which leads to food shortage and in some countries even to famine. The impacts of the IMF and WB activities on the environment are also tragic - the megalomaniac projects of WB result in the destruction of local ecosystems as well as the enforced relocation of millions of people.
The principal objective of these programs is to allow for the entrance of foreign speculative capital, which does not contribute to the creation of any values. It only utilises the absence of social and environmental regulations, takes control of the markets and sometimes destroys entire industrial branches. The recommendations the IMF and WB thus mostly do not lead to the promised economic growth. The only thing left behind would be a huge debt and in order to check its further increase, the separate countries have to pay considerable sums at least for amortisation of interests.
Arguments pointing to the influx of foreign investments sound insincere and unconvincing. Today roughly 40 thousand members of the global financial oligarchy control 80 % of the world's trade. The Possessions of the 200 richest people is larger than the total income of 41 % of the world&Mac226;s population. More than 250 million children have to work in the most inhuman conditions for bare survival. About 17 million children die every year from easily curable diseases. The desperate condition of today's world is not natural - it is merely a logical consequence of the system in which heightening of the profits of the most rich is the only respected value.
We do not think that we can oppose this development only through lobbying at the institutions like the IMF and the WB. We rely rather upon the movements from below made up from diverse groups like trade unions, unemployed, small or landless peasants, environmental initiatives, radical democratic political organisations, etc. Finding an alternative to the current social model is in our view an urgent necessity. However, we do not think that globalisation could be opposed by the protective policy of the national state which has already shown how willingly it succumbs to transnational corporations. We believe that the alternative is a society that is based not on the profit of a few, but on the genuine needs of many, on the principles of solidarity, mutual assistance and sustainable development.
Although our views on the origins of the serious problems of today's world and their solution differ, we regard the September summit of IMF and WB as such a crucial challenge that we have founded a common platform Initiative against Economic Globalisation - Prague 2000. It is not a new organisation with an independent program, but a democratic instrument of mutual communication and co-ordination between diverse groups, which plan to react to the IMF and WB summit. It should contribute to the wider publicity of actions organised by these groups. Together we want to organise some protest(s), lectures, educational and cultural events. The main event should be a counter-summit during which the specific harmful aspects of the economic globalisation as well as the search for alternatives could be discussed.
Initiative Against Economic Globalisation - Prague 2000 is open to all liberal-minded individuals and groups that would like to express their opinions regarding the summit of IMF and WB. We propose this initiative as a common platform, while maintaining the program autonomy of the separate groups, strengthens their voice even more. Similar gatherings of the
institutions of economic globalisation are attended by increasing resistance of general public. Let the voice of protests echo also in Prague. Let us face the globalisation of capital with the globalisation of solidarity.
You can support INPEG by sending an email expressing your support to antimmf@hotmail.com
We also welcome any information about what kind of assistance you can offer or co-operation.
For more information please se the IPNEG web site http://inpeg.ecn.cz
