| Papers - DDCI Research |
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Research published by DDCI proves that the IMF and World Bank do have the resources to cancel all the debt owed to them by the poorest countries. The report clearly shows that rather than being poverty stricken as they vigorously claim, the IMF and World Bank are richly endowed with huge reserves. In addition they earn enormous profits each year. The World Bank profits have increased from $1.2bn in l996 to $5.3bn in 2003.
What are they owed, what have they promised?
IMF is owed $7 bn by the poorest countries
IMF has promised to write off only $2 bn
IMF needs to cancel a further $5 bn to reach 100% cancellation
World Bank is owed $19.4 bn
World Bank has promised to write off $6.4 bn
World Bank needs to cancel a further $13 bn to reach 100% cancellation
Going for Gold!
The IMF holds one of the largest gold reserves in the world - 103 million
ounces. The research recommends that the IMF should sell 20 million ounces
- a fifth of their reserves. This should be done over a period of 3/4
years to avoid having a negative effect on the gold market. This would
provide enough to write off all the debt owed to them.
How to Use the World Bank's $$$$Billions
The Report recommends that the World Bank use $7 billion from its reserves
and then cancel the rest of its debt by making annual allocations from
its profits over a period of 20 years. This would not affect the World
Bank's credit rating or its lending capacity, nor would it have a significant
impact on the cost of borrowing.
Putting meat into the Irish debt policy sandwich
Among our reasons for commissioning this research was to give the Irish
government the courage to stand up to the IMF and World Bank and rebut
their claims of poverty.
Actions speak louder than words
This research will also enable us and other debt campaigners in the South
and North of the globe to promote the case for debt cancellation more
effectively.
The full report
"Can the World Bank (WB) and the International Monetary Fund
(IMF) Cancel 100% of poor country debts?" was researched
and written by Jubilee Research at the New Economics Foundation for Debt
and Development Coalition Ireland, and
can be accessed here!
While the research is quite detailed, and complexity reigns at times, it is well worth persevering. Here are some snippets to wet your appetite:
'Sitting atop billions of dollars of untapped resources, the IMF and World Bank are amongst the most prosperous financial institutions in the world. It is rather astonishing then, to see them plead poverty over the issue of cancelling 100% of the debts of countries they have already identified as having 'unsustainable debt'. (Page 6)
'Altruism and idealism aside, the debt of the HIPCs is also uncollectable; they cannot afford to pay and public lenders must do what private lenders do in these circumstances, get out of denial and face reality.'
'The IMF and the World Bank are saying: not relief for all 42 countries, total relief for any country, not now, and, certainly, not us'.
There are two DDCI briefing papers posted on the website under resources:
"Promoting
Ireland's Debt Policy"
Presentation to the Joint Committee on Finance and the Public Service
4 Sept 2003
"The
IMF in Low Income Countries: What has Changed?"
Presentation to the Joint Committee on Finance and the Public Service
Sept 4 2003
Print Version