Run on the Bank

Max Sawicky sawicky at
Mon Apr 10 15:23:22 PDT 2000

PB: "The motivation for rejecting hard-currency loans for "development" was the ANC left's fear of the rising cost of repayment on foreign debt, once the currency declines, and the use of hard currency not to pay for a basic education project but instead to a) repay illegitimate apartheid debt, b) import luxury goods for the rich, and c) replace local workers with inappropriate job-killing technology from abroad. In sum, why take a US dollar loan for building and staffing a small rural school with virtually no foreign input costs? . . . "

Patrick, Please expand on this, if you have time. Are you saying WB/IMF aid is funding jive social infrastructure programs w/no payoff hence weakening the country's foreign exchange position?


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