WTO 'asks' India to cut subsidies=destabilize India

[Guest guest]

--- On Wed 06/26, Margot Suettmann wrote:

....from a news paper article:

 

>WTO asks India to cut subsidies

 

>GENEVA,JUNE 24: The World Trade Organisation urged India to cut >the >fiscal

deficit by reducing subsidies, reforming tax and tariff >policy and stepping up

privatisations.

 

In other words:

 

WTO asks India to create a situation that increases the risk social unrest in

the country.

 

This is a likely result of the WTO advice. Privatisations pave the way for

increased presence of multinational companies that have

effectively demolished local enterprises causing large scale unemployment in

many Third World countries. The unrest caused by unemployment may be aggravated

by the reduced subsidies and reduction of welfare programs caused by the

decrease of tax and tariff incomes required according to WTO.

 

WTO is paving the way for the kind of destruction of national economies

condemend by former World Bank chief advisor and Nobel Laureate Josephs

Stiglitz. He finds that this destructive policy has in practice greatly favored

the interests of US and other multinationals by creating an economic crisis as a

result of the social unrest it precipitates. It leads to what Stiglitz calls the

"IMF riots" that have occurred among others in Indonesia, Malaysia, Bolivia,

Ecuador and Argentina.

 

>From an interview with Stiglitz: [When a nation is] "down and out,[the IMF]

takes advantage and squeezes the last pound of blood out of them." ..."The IMF

riots (and by riots I mean peaceful demonstrations dispersed by bullets, tanks

and teargas) cause new panicked flights of capital and government bankruptcies.

This economic arson has it’s bright side - for foreign corporations, who can

then pick off remaining assets, such as the odd mining concession or port, at

firesale prices. "

(Source: The Globalizer Who Came In From the Cold, Observer, London.Wednesday,

October 10, 2001, http://www.gregpalast.com/detail.cfm?artid=78&;row=1)

 

Stiglitz also points out that the only countries that have escaped severe

economic problems are those who have kept out of the World Bank and IMF, not

following their destructive "advice".

 

National economics is a difficult thing with greatly conflicting opinions among

experts how to control and improve the economy. Experience shows clearly,

according to Stiglitz, that the simplistic economics model favored by the World

Bank and IMF is not applicable to developing countries - if anywhere.

 

Beware India of the World Bank and IMF and their outdated advice that are

tainted by consistently repeated failures. These failures have a common

demoninator - that they lead to an economic crisis that has greatly favoured the

interests of the multinationals that in practice control the World Bank and IMF!

 

Jaan