jueves, 9 de enero de 2014

FOREIGN DEBT and the ECONOMICS of the EGYPTIAN COUNTER-REVOLUTION



FOREIGN DEBT and the ECONOMICS of the EGYPTIAN  COUNTER-REVOLUTION. 

INTRODUCTION  By Hugo Adan. Enero 10, 2014

En dos anteriores artículos indicábamos que hay dos barreras grandes que impiden el avance de la rev popular Egipcia, el fundamentalismo neoliberal y el religioso. El 1ro obliga a la sumisión económica a las reglas que se establecieron en el Washignton Consensus de 1985, lo que solo beneficia a los grandes banqueros y las grandes corporaciones de los imperios del norte. Libertad económica solo existe para ellos (lo documenté en varios artículos de esta web ( http://nd-hugoadan.blogspot.com/ ) el resto tiene que pagarles tributos y eso opera a través del control del dólar y de la deuda externa.

De otro lado, el fundamentalismo religioso solo ha servido  para entronizar en el poder local a jeques y reyesuelos que usan la fe del pueblo para encebar sus panzas con el uso privado de riquezas naturales que pertenecen a toda la nación.  En nombre de ambos fundamentalismos se han cometido y se siguen cometiendo los más horribles  crímenes contra la humanidad. Si ambos fundamentalismos  aún están vigentes es porque se apoyan en estructuras y aparatos institucionales que la revolución  egipcia fue incapaz de afectar.

Morsi se acomodó en ellas, se puso la bota militar para  aplastar las demandas popular con una horrenda masacre jamás vista en la historia Egipcia.  Encima de las botas se puso los calcetines de democracia y los velos de  la charria para arrebatarle al pueblo su revolución. Fue Morsi quien inicio la contra-revolucion económica  en Egipto y aquí vamos a documentarlo con un artículo introductorio que muestra que el pueblo Egipcio exigió auditoria en lugar de los corruptos swaps. Esa demanda no se respetó, al contrario se la aplastó en forma bruta.  En otros artículos que adjunto se indica que la lucha continuó y aún continúa. Ver  RELATED ARTICLES.  

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Egypt. DEBT SWAP IS NOT AN ALTERNATIVE TO CANCELLING ODIOUS DEBT  Statement of the Popular Campaign to Drop Egypt’s Debt. 17 February 2012 by Popular Campaign to Drop Egypt’s Debt http://cadtm.org/Egypt-Debt-Swap-is-not-an

Background

Amidst a general atmosphere of an extreme lack of transparency it has come to our knowledge that Egypt had sealed agreements with three European countries pertaining to the implementation of debt swap programs, and is currently negotiating with two further countries. The countries in question according to informal sources are Germany, France, Italy and Belgium. The Popular Campaign to Drop Egypt’s Debt would like to raise strong concerns regarding the conditions under which these agreement are being negotiated, as well as the practice of debt swap itself under the given circumstances. In the current phase our campaign opposes in principle dealing with Egypt’s foreign debt through debt swap initiatives, as this diverges from the main aim of auditing previous debt, especially that contracted during the Mubarak dictatorship. And since there is considerable consensus amongst a wide group of Members of the European Parliament to suspend payments and conduct an audit to countries going through democratization processes as, stated in the ACP-EU Joint Parliamentary Assembly Resolution |1|, we would like to elaborate more on our concerns.

Lack of transparency and participation

Undoubtedly, whatever the final political or economic position is of any debt swap agreements, they show from the very beginning a lack of transparency, as is the case with all activities related to borrowing from abroad in specific, and from government finances in general. The degree of secrecy this time has reached the situation where the government made no public statements, nor informed any media outlets about the details of the debt swap agreements. It is through informal connections that the campaign was able to obtain any information whatsoever. If the current government sees some gain in a debt swap, and a sort of external help for Egypt, then it is imperative to disclose the details of these agreements and declare the alleged achievements with civil society and the Egyptian public at large.

Campaign’s position on the procedure of debt swap

Furthermore, aside from the lack of transparency in procedures, and any kind of popular or parliamentary political participation, swapping debt does not represent in any manner an alternative to auditing and cancelling foreign odious debts. The reason is that debt swap is based on one country forfeiting its right to a debt or part of such in return of the indebted government’s vow to direct the amounts to investment projects to be agreed upon with the lending country.

However, whereas debt swap achieves initial gains in terms of a) saving the cost of servicing the debt, as well as b) transforming foreign debts to investments, there would be no guarantee that these projects align with indebted states’ plans for development. On the contrary such projects often constitute some sort of constraint or conditionality. In this light, setting the nature and value of the projects and the expected returns is another issue that needs to be investigated, to ensure that debt swap does not further burden the indebted country – Egypt- with more liabilities than those of the original debt. In all cases, the details of the agreement should be disclosed, along with the standards upon which the projects were agreed upon.

Debt swap and odious debt

Most importantly, debt swap agreements do not represent in any manner an alternative to auditing and dropping foreign debt that are proven to be illegal or illegitimate. This is true in the case where loans are made without true political representation of a population. Furthermore, loans or debt swaps are considered illegitimate or odious when the creditor is aware that the borrowing government is not subject to any real supervision, which would allow for a guarantee of a sound spending of the funds, or that this government is oppressive of its population.
Unfortunately, those conditions stated above have manifested during Mubarak’s dictatorship, thus bringing urgent rise to conduct an extensive debt audit of the foreign debt incurred under the Mubarak regime. Therefore, The Popular Campaign to Drop Egypt’s Debts will continue to search and examine the external debt register, although it further demands the disclosure of the details related to debt swap agreements. The members of the campaign are strongly disappointed all reports of the corruption of the Mubarak regime have not translated into an examination of the accumulated external and internal debts during the extended years of his rule. The disregard of such a matter occurred, in spite of the disclosure on the part of official parliamentary or judicial parties of the corruption in the external debt file.

Respect for the sovereignty of the Egyptian people

One aim of this exercise is to send a clear message to future governments, that contracting new debt without transparency and accountability is no longer acceptable. After the Arab Spring, the people demand from both their own government and creditors to respect the fundamental sovereignty of the Egyptian people with regards to economic decision-making.

Transitional governments should not formulate Egypt’s long-term policies

The campaign believes, that the government’s continuous tendency to swap debts instead of reviewing and abstaining from payment of whatever is proven to be illegal, or odious, is an attempt to avoid the responsibility for past misconduct carry out at in the name of the Egyptian people. This is not unexpected since most members of the current economic decision making team remain in the same positions they held during the previous regime. Furthermore, we find it entirely unacceptable that a ‘transitional’ government is overstepping its jurisdiction and is negotiating agreements with foreign governments, the implications of which determine the economic future of Egypt.

For all the reasons mentioned in this letter we herewith call upon all foreign governments to: 1- abstain from negotiating with any unelected transitional government; 2- allow for the auditing of all unilateral debt incurred by the Egyptian dictatorship and; 3-  to ensure all future negotiations are transparent and take place with a legitimate partner that represents the Egyptian population.
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Excerpt from our founding statement |2|
2) As a general rule, the campaign disapproves of debt swap mechanisms.  Debt swaps create new debt burdens, whose legality and benefit are not checked by the people. In cases where debt swaps are used instead of audit and cancellation, the campaign adopts the following stands:
  • Debt agreements should be reviewed to determine the legitimacy of the swapped debts.
  • The conditions of debt swap should be discussed in a manner that guarantees integrity and transparency in the decision-making process
Footnotes
|1| ACP-EU Joint Parliamentary Assembly Resolution; reference: ACP-EU/100.958/11/ fin: http://www.europarl.europa.eu/intco...

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RELATED ARTICLES

Open Call: Egyptian Human Rights Organizations Oppressed 19 December 2013 - Egyptian Center for Economic and Human Rights  http://cadtm.org/Open-Call-Egyptian-Human-Rights

Egypt’s turmoil is a distraction from IMF economic agenda 24 September 2012 - Nick Dearden  http://cadtm.org/Egypt-s-turmoil-is-a-distraction

Egypt. ’No’ to borrowing on the terms of the IMF, Ganzouri and their successors 13 September 2012 - Wael Gamal.  http://cadtm.org/Egypt-No-to-borrowing-on-the-terms

Hook: Egypt debt repayments to UK and other Western governments, 29 June Egypt pays $650m ‘dictator debt’ to West 28 June 2012 - Jubilee Debt Campaign  http://cadtm.org/Egypt-pays-650m-dictator-debt-to

The Popular Campaign to Drop Egypt’s Debt Call to European national MPs and MEPs: To demand from the Egyptian government an audit of Egypt’s debts to EU countries through an independent committee 6 June 2012  http://cadtm.org/The-Popular-Campaign-to-Drop-Egypt,8049

Drop Egypt’s Debt letter to IMF around Spring meetings requesting transparency! 28 April 2012 - Popular Campaign to Drop Egypt’s Debt.  http://cadtm.org/Drop-Egypt-s-Debt-letter-to-IMF

Egypt’s economic reform proposals ignore social justice: Civil group 2 April 2012 - Bassem Abo Alabass

Press Release Egypt: transitional government obtains loans four times as much as those of Mubarak’s time 2 February 2012 - Amr Adly   http://cadtm.org/Egypt-s-economic-reform-proposals

Egypt’s ’Orderly Transition’? International Aid and the Rush to Structural Adjustement 3 December 2011 - Adam Hanieh  http://cadtm.org/Egypt-transitional-government

“You Pay, You Monitor” The Popular Campaign to Drop Egypt’s Debts 8 November 2011 - Popular Campaign to Drop Egypt’s Debt.  http://cadtm.org/The-Popular-Campaign-to-Drop-Egypt

Egypt to IMF: ‘Topple their debts’ 8 November 2011 - Eric Walberg.  http://cadtm.org/Egypt-to-IMF-Topple-their-debts

What is a debt audit and how might it work in Egypt 29 August 2011 - Nick Dearden  http://cadtm.org/What-is-a-debt-audit-and-how-might

Debt, Dictatorship, and Democratization 20 April 2011 - Robert Howse, Ruti Teitel  http://cadtm.org/Debt-Dictatorship-and

Egypt’s debt must fall with Mubarak’s regime 18 February 2011 - Nick Dearden  http://cadtm.org/Egypt-s-debt-must-fall-with

The Arab revolution is underway: after Tunisia, Egypt in turn ignites... 8 February 2011 - Jérome Duval, Fathi Chamkhi  http://cadtm.org/The-Arab-revolution-is-underway


DOCUMENTOS TEORICOS


1. CANCELLING DEBT OR TAXING CAPITAL: WHY SHOULD WE CHOOSE?
November 2, 2013 by Eric Toussaint , Patrick Saurin , Thomas Coutrot
 
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2.  DEMANDS INCREASE FOR INTERNATIONAL MECHANISMS TO PUNISH TRANSNATIONAL CORPORATIONS’ CRIMES .  International Peoples Treaty: “Defending peoples’ rights against corporate power”.  5 December 2013 by Stop corporate impunity   http://cadtm.org/Demands-increase-for-international
 
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3. DEBT VERSUS DEMOCRACY: A BATTLE FOR THE FUTURE  23 January 2013 by Marisa Holmes .  http://cadtm.org/Debt-Versus-Democracy-A-Battle-for



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