third world debt and Cambodia

Patrick Bond pbond at wn.apc.org
Tue Feb 29 12:49:33 PST 2000



> From: "McNally, David J. (LNG-MBC)" <David.J.McNally at bender.com>
> It does sound as if there should be some sort of code of conduct, such that
> development loans shouldn't be spent on companies or goods from the country
> giving the loan.

Don't stop there!

In South Africa, the drafting of the 1994 Reconstruction and Development Programme--the African National Congress campaign platform in the first democratic election--witnessed the progressive forces winning an extremely hard- fought campaign for the following wording, which (although widely violated by neoliberals in a few government agencies) has served as the primary basis for social movements' fight against World Bank loans to the post-apartheid SA government:

6.5.17 There is a need for an overall

foreign debt strategy. The RDP must use

foreign debt financing only for those

elements of the programme that can

potentially increase our capacity for

earning foreign exchange. Relationships

with international financial institutions

such as the World Bank and International

Monetary Fund must be conducted in such

a way as to protect the integrity of

domestic policy formulation and promote

the interests of the South African

population and the economy. Above all, we

must pursue policies that enhance

national self-sufficiency and enable us

to reduce dependence on international

financial institutions.

Patrick



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