Proposal Papers for the Twenty-first Century: Debt and Structural Adjustment
This Proposal Paper is a summary of the work by the Debt and Structural Adjustment Workshop.
The subject of the debt is one that affects the everyday life of the citizens of the South in that resources are transferred for the development of the South to the North, thus slowing down the accumulation of capital of the countries of the South. The theoretical modes of approximation of the interest rates used by the IMF and international banks suggest that the banks will never lend resources in such a way that the debtors will be able to pay them off.
The evidence shows that the creditors lend to make debtors pay forever, thus generating a pyramid of debts from which the legally contracted country cannot escape. It is legitimate that they be able to escape, or they will remain forever post-modern colonies: at the top of this pyramid, the creditors have built up illegitimate sums, essentially through the mechanism of capitalization of interests. This way, the countries of Africa and Latin America and some in Asia end up transferring resources, which still today impede the development of their nations.