Connect with us

Op-Eds

Greed and Delusions of Grandeur: A Primer on Dystopian Economics

7 min read.

And so, the inevitable has happened. After five years of Jubilee’s astonishing debt-fuelled binge, Kenya is now officially in an IMF bailout programme. As the government struggles to raise Ksh 284 billion for debt repayments this year alone, the austerity knife will make deep, long cuts into jobs and budgets. With private sector investment on its knees, Jubilee’s spending jamboree has already eaten Uhuru Kenyatta’s ‘Big Four Agenda’ children. DAVID NDII gives a sobering prognosis.

Published

on

Greed and Delusions of Grandeur: A Primer on Dystopian Economics
Download PDFPrint Article

Those of us who lived through the structural adjustment era would never have thought that we would live to see another IMF Letter of Intent. But then again, we would never have expected to see NYS buses ferrying commuters in Nairobi either.

But what is a Letter of Intent? It is an ominous missive ostensibly written to the IMF Managing Director by governments seeking an IMF bailout. It is usually co-signed by the Minister of Finance and the Central Bank Governor, outlining the austerity measures that the said government intends to take to fix its finances. In my day, it used to be addressed “Dear Mr. Camdessus”. These days, it is addressed “Dear Ms. Lagarde”. Only, it is not written by the government. It is drafted by the IMF staff and presented more or less as a fait accompli for signature. Henry Rotich and Patrick Njoroge signed one recently, dated March 6 2018. Here are some excerpts:

“The introduction of interest rate control in September 2016, which were aimed at addressing the high cost of credit, has had unintended adverse consequences on credit growth and monetary policy effectiveness.”

“In making this request, we commit to strong policies to achieve our program objectives. These include: (1) a reduction in the fiscal deficit from 8.8 percent of GDP in 2016/17 to 7.2 percent GDP by the end of this fiscal year (June 30, 2018) and a further reduction to 5.7 percent of during the next fiscal year (June 30, 2019); (2) a significant modification of interest rate controls to avoid their adverse impact on credit to the private sector, monetary policy effectiveness, and financial stability; and (3) strengthening the monetary policy framework, including the introduction of an interest rate corridor following the significant modification of interest rate controls.”

What caused credit to collapse? Interest rates did not go up suddenly. The average lending rate leading up to the sudden nosedive in bank lending was stable, fluctuating around 16 percent. The rate inched up two percentage points where it remained until the cap was imposed a year later. The cause of the credit slump lies elsewhere.

This columnist, along with other experts, argued strongly against the interest rate caps, as did the Central Bank. That said, the claim that interest rate controls had adversely affected credit is incorrect. The interest rate cap was introduced in August 2016. By then, bank lending to the private sector had been in free-fall for a year, plummeting from 20 percent growth per year to five percent per year. The interest rate caps do not appear to have made much of a difference either way.

What caused credit to collapse? Interest rates did not go up suddenly. The average lending rate leading up to the sudden nosedive in bank lending was stable, fluctuating around 16 percent. The rate inched up two percentage points where it remained until the cap was imposed a year later.

The cause of the credit slump lies elsewhere.

The Jubilee administration’s profligate ways are now the stuff of legend. Still, seeing is believing (See chart 1, below). To wit, Jubilee assumes office with the annual budget deficit running at Ksh. 200 billion, just under six percent of GDP. It surges in its first three months and then slows back down to the Ksh. 200 billion level in the first quarter of 2014, equivalent to four percent of GDP. This initial surge can be attributed to the roll-out of devolution. The respite was temporary. Over the next year, the deficit surges threefold, hitting Ksh. 670 billion, a mind-boggling 12 percent of GDP. It slows down thereafter but not by much. The next surge, from the beginning of 2016, takes it up to Ksh. 750 billion, equivalent to 10 percent of GDP at the end of the term.

In comparison, NARC maintained a budget deficit of 2.5 percent of GDP, rising to 5.3 percent under the grand coalition, and to 8 percent under Jubilee. It is noteworthy that Uhuru Kenyatta was the grand coalition’s finance minister. Eight percent of GDP may not sound like a whole lot, until you consider that Government revenue is in the order of 18 percent of GDP, hence an eight percent of GDP budget deficit is in fact equivalent to government spending 44 percent more than its income year after year. A 2.5 percent budget deficit is sound, five percent is alarming, eight percent is downright irresponsible.

When the government goes on a spending spree, it distorts incentives. The NYS and health ministry scandals were only the most egregious exposés of what goes on in public procurement. Opportunities such as selling mobile clinics that can be bought on Alibaba for US$ 3000 (Ksh. 300,000) to the government at Ksh. 8 million can be counted on to divert a lot of resources, human and financial, to the tenderpreneurs.

Deficit spending of this magnitude has economic consequences of many kinds, none of them good. First, the deficit has to be financed. It can be financed by borrowing externally, or domestically. Despite the Chinese loans for the SGR railway, the Eurobond and several other syndicated foreign bank loans, half the deficit has been financed by domestic borrowing. The effect is that the government crowds out private lending. The impact is immediate. As soon as the government publishes a budget with a huge domestic borrowing requirement, lenders and institutional investors know that they will be able to lend more and extract higher yields from the government. They begin to adjust their portfolios accordingly.

And that’s exactly what we see (See chart 2, below). Jubilee’s spending spree binge was announced with the budget read in June 2014. Deficit spending surges threefold from Ksh. 220 billion in the year to May 2014 to peak at Ksh. 670 billion for the year to April 2015. It takes a while for the madness to work its way through the economy. Six months later, bank lending to the private sector goes into free fall. By the time interest rates are capped a year later, private bank lending has slowed to five percent per year, down from 20 percent. Capping did not help. A year later, lending was down to 1.5 percent. By this time the deficit was running at Ksh. 750 billion, equivalent to 60 percent of government revenue.

With market interest rates, this kind of binge spending would have pushed up government borrowing rates to the mid-20s, with attendant financial and political consequences. Unwittingly, the interest rate cappers, whose stated objective was to borrow cheap, ended up shielding the government from the consequences of its recklessness, with no benefit to themselves.

Second, when the government goes on a spending spree, it distorts incentives. Governments are generally wasteful spenders, corrupted ones even more so. The NYS and health ministry scandals were only the most egregious exposés of what goes on in public procurement. Opportunities such as selling container clinics that can be bought on Alibaba for US$ 3000 (Ksh. 300,000) to the government at Ksh. 8 million can be counted on to divert a lot of resources, human and financial, to tenderpreneurship.

Third, government spending sprees inflate costs, as businesses are forced to compete with the inflated prices that service providers are able to charge the government. Even availability of some services becomes a problem as providers chase lucrative government contracts.

Now comes the conundrum. To cut the deficit, the government has to raise more revenue and cut expenditure. Both of these are contractionary. The government will be seeking to extract more revenue from a private sector that it has done all it could to weaken. And economic growth is now heavily dependent on the very government spending that needs to be cut.

Fourth, governments make bad investments. If a private enterprise makes a few bad investments, it goes bust. Government that make bad investments are re-elected. This I need not belabor, but I will. The flagship standard gauge railway, apparently so desperately needed, is turning out to be the boondoggle that its critics, this columnist included, said it would be. We have a 40 percent electricity generation capacity surplus. Investors are not flocking, but consumers are up in arms. There are others: Galana-Kulalu irrigation project, the failed groundnut scheme. The said container clinics, which cost Ksh. 800 million, are rusting away in Mombasa. Makueni Governor Kivutha Kibwana’s fruit processing factory is reported to have cost Ksh. 450 million.

The morning after Jubilee’s spending jamboree is aptly summed up in the World’s Bank’s latest Kenya Economic Update report, published earlier this week (it is worth noting that the World Bank has been one of the cheerleaders of the Jubilee administration’s debt fueled infrastructure binge):

“Worryingly, the contribution to growth from private investment has been decelerating in recent years. Unlike the solid contribution to growth from the public sector, the contribution from private investment has been negative in recent years, declining from 1.3 percentage points of GDP in the four years leading to 2013 to negative 0.7 percentage points in the four years leading to 2017, a swing of 2 percentage points of GDP.”

Growth in the four years to 2013 averaged 6.1 percent, meaning that private investment contributed 20 percent of it. Growth in the four years to 2017 was 5.4 percent meaning that it would have been 6.1 percent if private sector investment had not collapsed.

Now comes the conundrum. To cut the deficit, the government has to raise more revenue and cut expenditure. Both of these are contractionary. The government will be seeking to extract more revenue from a private sector that it has done all it could to weaken. And economic growth is now heavily dependent on the very government spending that needs to be cut. The two year 3.1 percentage point adjustment (from 8.8 to 5.7 percent of GDP) is in the order of Ksh. 270 billion. Given the state of the economy, revenue will contribute very little of this. Expenditure will have to do most of the adjusting – and that requires resolve and reforms the discipline for which Jubilee will struggle to muster.

The principal on market debt can be rolled over, but interest is paid out of revenue – Ksh. 284 billion this year. But the amount of debt that we now have to refinance leaves very little headroom to borrow for new projects. The prospectus for the US$ 2 billion second eurobond raised two months ago said it was for investment and “liability management.” Make that all of it. Big four agenda, anyone?

As we demonstrated a fortnight ago, most of the borrowed money has been plundered or squandered. There are no economic returns expected from the investments. But the debts have to be serviced. As noted, the IMF standby credit facility commits the government to review the interest rate cap. The choice of language reflects a recognition that repealing the law may be a tall order. But make no mistake about it: whatever manouvering they have made to have it implemented, will be to the same effect. A one percentage point interest cost increase on the Ksh. 2.3 trillion domestic debt translates to Ksh. 23 billion.

The principal on market debt (i.e. treasury bills, bonds and Eurobonds) can be rolled over but interest is paid out of revenue – Ksh. 284 billion this year. But the amount of debt that we now have to refinance leaves very little headroom to borrow for new projects. The prospectus for the US$ 2 billion second Eurobond raised two months ago said it was for investment and “liability management.” Make that all of it. Big four agenda, anyone?

It is fair to say that Uhuruto’s great leap forward has come a cropper. That though, was never in doubt.

Support The Elephant.

The Elephant is helping to build a truly public platform, while producing consistent, quality investigations, opinions and analysis. The Elephant cannot survive and grow without your participation. Now, more than ever, it is vital for The Elephant to reach as many people as possible.

Your support helps protect The Elephant's independence and it means we can continue keeping the democratic space free, open and robust. Every contribution, however big or small, is so valuable for our collective future.

David Ndii
By

David Ndii is a leading Kenyan economist and public intellectual.

Op-Eds

Another False Start: The Green Revolution Myths that Africa Bought

The flaws and dire consequences of India’s Green Revolution should have warned policymakers of the likely disappointing results of GR in Africa.

Published

on

Another False Start: The Green Revolution Myths that Africa Bought
Download PDFPrint Article

Since the Alliance for a Green Revolution in Africa (AGRA) was launched in 2006, crop yields have barely risen, while rural poverty remains endemic, and would have increased more if not for out-migration. With funding from the Bill and Melinda Gates Foundation and the Rockefeller Foundation, AGRA was started with the objective of raising yields and incomes for 30 million smallholder farm households while halving food insecurity by 2020. There are no signs of significant productivity and income boosts from promoted commercial seeds and agrochemicals in AGRA’s 13 focus countries. Meanwhile, the number of undernourished in these nations increased by 30 per cent.

When will we ever learn?

What went wrong? The continuing protests by Indian farmers — despite the COVID-19 resurgence — highlight the problematic legacy of its Green Revolution (GR) in frustrating progress to sustainable food security. Many studies have already punctured some myths of India’s GR. Looking back, its flaws and their dire consequences should have warned policymakers of the likely disappointing results of the GR in Africa. Hagiographic accounts of the GR cite “high‐yielding” and “fast-growing” dwarf wheat and rice spreading through Asia, particularly India, saving lives, modernising agriculture, and “freeing” labour for better off-farm employment.

Many recent historical studies challenge key claims of this supposed success, including allegedly widespread yield improvements and even the number of lives actually saved by increased food production. Environmental degradation and other public health threats due to the toxic chemicals used are now widely recognised. Meanwhile, water management has become increasingly challenging and unreliable due to global warming and other factors.

Ersatz GR2.0 for Africa

Half a century later, the technology-fetishizing, even deifying AGRA initiative seemed oblivious of Asian lessons as if there is nothing to learn from actual experiences, research and analyses. Worse, AGRA has ignored many crucial features of India’s GR. Importantly, the post-colonial Indian government had quickly developed capacities to promote economic development. Few African countries have such “developmental” capacities, let alone comparable capabilities. Their already modest government capacities were decimated from the 1980s by structural adjustment programmes demanded by international financial institutions and bilateral “donors”.

Ignoring lessons of history

India’s ten-point Intensive Agricultural Development Programme was more than just about seed, fertiliser and pesticide inputs. Its GR also provided credit, assured prices, improved marketing, extension services, village-level planning, analysis and evaluation. These and other crucial elements are missing or not developed appropriately in recent AGRA initiatives. Sponsors of the ersatz GR in Africa have largely ignored such requirements. Instead, the technophile AGRA initiative has been enamoured with novel technical innovations while not sufficiently appreciating indigenous and other “old” knowledge, science and technology, or even basic infrastructure. The Asian GR relied crucially on improving cultivation conditions, including better water management. There has been little such investment by AGRA or others, even when the crop promoted requires such improvements.

From tragedy to farce

Unsurprisingly, Africa’s GR has reproduced many of India’s problems. As in India, overall staple crop productivity has not grown significantly faster despite costly investments in GR technologies. These poor productivity growth rates have remained well below population growth rates. Moderate success in one priority crop (e.g., wheat in Punjab, India, or maize in Africa) has typically been at the expense of sustained productivity growth for other crops. Crop and dietary diversity has been reduced, adversely affecting cultivation sustainability, nutrition, health and wellbeing. Subsidies and other incentives have meant more land devoted to priority crops, not just intensification, with adverse land use and nutrition impacts. Soil health and fertility have suffered from “nutrient-mining” due to priority crop monocropping, requiring more inorganic fertilizer purchases. Higher input costs often exceed additional earnings from modest yield increases using new seeds and agrochemicals, increasing farmer debt.

Paths not taken 

AGRA and other African GR proponents have had 14 years, and billions of dollars, to show that input-intensive agriculture can raise productivity, net incomes and food security. They have clearly failed. Africans —  farmers, consumers and governments —  have many good reasons to be wary, especially considering AGRA’s track record after a decade and a half. India’s experience and the ongoing farmer protests there should make them more so. Selling Africa’s GR as innovation requiring unavoidable “creative destruction” is grossly misleading. On the other hand, many agro-ecology initiatives, which technophiles decry as backward, are bringing cutting-edge science and technology to farmers, with impressive results. A 2006 University of Essex survey, of nearly 300 large ecological agriculture projects in more than fifty poor countries, documented an average 79 per cent productivity increase, with declining costs and rising incomes. Published when AGRA was launched, these results far surpass those of GRs thus far. Sadly, they remind us of the high opportunity costs of paths not taken due to well-financed technophile dogma.

Continue Reading

Op-Eds

SAPs – Season Two: Why Kenyans Fear Another IMF Loan

The Jubilee government would have us believe that the country is economically healthy but the reality is that the IMF has come in precisely because Kenya is in a financial crisis.

Published

on

SAPs – Season Two: Why Kenyans Fear Another IMF Loan
Download PDFPrint Article

Never did I imagine that opposing an International Monetary Fund (IMF) loan to Kenya would be viewed by the Kenyan authorities as a criminal act. But that is exactly what transpired last week when activist Mutemi Kiama was arrested and charged with “abuse of digital gadgets”, “hurting the presidency”, “creating public disorder” and other vaguely-worded offences. Mutemi’s arrest was prompted by his Twitter post of an image of President Uhuru Kenyatta with the following caption: “This is to notify the world . . . that the person whose photograph and names appear above is not authorised to act or transact on behalf of the citizens of the Republic of Kenya and that the nation and future generations shall not be held liable for any penalties of bad loans negotiated and/or borrowed by him.” He was released on a cash bail of KSh.500,000 with an order prohibiting him from using his social media accounts or speaking about COVID-19-related loans.

Mutemi is one among more than 200,000 Kenyans who have signed a petition to the IMF to halt a KSh257 billion (US$2.3 billion) loan to Kenya, which was ostensibly obtained to cushion the country against the negative economic impact of COVID-19.  Kenya is not the only country whose citizens have opposed an IMF loan. Protests against IMF loans have been taking place in many countries, including Argentina, where people took to the streets in 2018 when the country took a US$50 billion loan from the IMF. In 2016, Eqyptian authorities were forced to lower fuel prices following demonstrations against an IMF-backed decision to eliminate fuel subsidies. Similar protests have also taken place in Jordan, Lebanon and Ecuador in recent years.

Why would a country’s citizens be against a loan given by an international financial institution such as the IMF? Well, for those Kenyans who survived (or barely survived) the IMF-World Bank Structural Adjustment Programmes (SAPs) of the 1980s and 90s, the answer is obvious. SAPs came with stringent conditions attached, which led to many layoffs in the civil service and removal of subsidies for essential services, such as health and education, which led to increasing levels of hardship and precarity, especially among middle- and low-income groups. African countries undergoing SAPs experienced what is often referred to as “a lost development decade” as belt-tightening measures stalled development programmes and stunted economic opportunities.

In addition, borrowing African countries lost their independence in matters related to economic policy. Since lenders, such as the World Bank and the IMF, decide national economic policy – for instance, by determining things like budget management, exchange rates and public sector involvement in the economy – they became the de facto policy and decision-making authorities in the countries that took their loans. This is why, in much of the 1980s and 1990s, the arrival of a World Bank or IMF delegation to Nairobi often got Kenyans very worried.

In those days (in the aftermath of a hike in oil prices in 1979 that saw most African countries experience a rise in import bills and a decline in export earnings), leaders of these international financial institutions were feared as much as the authoritarian Kenyan president, Daniel arap Moi, because with the stroke of a pen they could devalue the Kenyan currency overnight and get large chunks of the civil service fired. As Kenyan economist David Ndii pointed out recently at a press conference organised by the Linda Katiba campaign, when the IMF comes knocking, it essentially means the country is “under receivership”. It can no longer claim to determine its own economic policies. Countries essentially lose their sovereignty, a fact that seems to have eluded the technocrats who rushed to get this particular loan.

When he took office in 2002, President Mwai Kibaki kept the World Bank and the IMF at arm’s length, preferring to take no-strings-attached infrastructure loans from China. Kibaki’s “Look East” economic policy alarmed the Bretton Woods institutions and Western donors who had until then had a huge say in the country’s development trajectory, but it instilled a sense of pride and autonomy in Kenyans, which sadly, has been eroded by Uhuru and his inept cronies who have gone on loan fishing expeditions, including massive Eurobonds worth Sh692 billion (nearly $7 billion), which means that every Kenyan today has a debt of Sh137,000, more than three times what it was eight years ago when the Jubilee government came to power. By the end of last year, Kenya’s debt stood at nearly 70 per cent of GDP, up from 50 per cent at the end of 2015. This high level of debt can prove deadly for a country like Kenya that borrows in foreign currencies.

When the IMF comes knocking, it essentially means the country is “under receivership”.

The Jubilee government would have us believe that the fact that the IMF agreed to this loan is a sign that the country is economically healthy, but as Ndii noted, quite often the opposite is true: the IMF comes in precisely because a country is in a financial crisis. In Kenya’s case, this crisis has been precipitated by reckless borrowing by the Jubilee administration that has seen Kenya’s debt rise from KSh630 billion (about $6 billion at today’s exchange rate) when Kibaki took office in 2002, to a staggering KSh7.2 trillion (about US$70 billion) today, with not much to show for it, except a standard gauge railway (SGR) funded by Chinese loans that appears unable to pay for itself. As an article in a local daily pointed out, this is enough money to build 17 SGRs from Mombasa to Nairobi or 154 superhighways like the one from Nairobi to Thika. The tragedy is that many of these loans are unaccounted for; in fact, many Kenyans believe they are taken to line individual pockets. Uhuru Kenyatta has himself admitted that Kenya loses KSh2 billion a day to corruption in government. Some of these lost billions could actually be loans.

IMF loans with stringent conditions attached have often been presented as being the solution to a country’s economic woes – a belt-tightening measure that will instil fiscal discipline in a country’s economy by increasing revenue and decreasing expenditure. However, the real purpose of these loans, some argue, is to bring about major and fundamental policy changes at the national level – changes that reflect the neoliberal ethos of our time, complete with privatisation, free markets and deregulation.

The first ominous sign that the Kenyan government was about to embark on a perilous economic path was when the head of the IMF, Christine Lagarde, made an official visit to Kenya shortly after President Uhuru was elected in 2013. At that time, I remember tweeting that this was not a good omen; it indicated that the IMF was preparing to bring Kenya back into the IMF fold.

Naomi Klein’s book, The Shock Doctrine, shows how what she calls “disaster capitalism” has allowed the IMF, in particular, to administer “shock therapy” on nations reeling from natural or man-made disasters or high levels of external debt. This has led to unnecessary privatisation of state assets, government deregulation, massive layoffs of civil servants and reduction or elimination of subsidies, all of which can and do lead to increasing poverty and inequality. Klein is particularly critical of what is known as the Chicago School of Economics that she claims justifies greed, corruption, theft of public resources and personal enrichment as long as they advance the cause of free markets and neoliberalism. She shows how in nearly every country where the IMF “medicine” has been administered, inequality levels have escalated and poverty has become systemic.

Sometimes the IMF will create a pseudo-crisis in a country to force it to obtain an IMF bailout loan. Or, through carefully manipulated data, it will make the country look economically healthy so that it feels secure about applying for more loans. When that country can’t pay back the loans, which often happens, the IMF inflicts even more austerity measures (also known as “conditionalities”) on it, which lead to even more poverty and inequality.

IMF and World Bank loans for infrastructure projects also benefit Western corporations. Private companies hire experts to ensure that these companies secure government contracts for big infrastructure projects funded by these international financial institutions. Companies in rich countries like the United States often hire people who will do the bidding on their behalf. In his international “word-of-mouth bestseller”, Confessions of an Economic Hit Man, John Perkins explains how in the 1970s when he worked for an international consulting firm, he was told that his job was to “funnel money from the World Bank, the US Agency for International Development and other foreign aid organisations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s resources”.

Sometimes the IMF will create a pseudo-crisis in a country to force it to obtain an IMF bailout loan.

The tools to carry out this goal, his employer admitted unashamedly, could include “fraudulent financial reports, rigged elections, payoffs, extortion, sex and murder”. Perkins showed how in the 1970s, he became instrumental in brokering deals with countries ranging from Panama to Saudi Arabia where he convinced leaders to accept projects that were detrimental to their own people but which enormously benefitted US corporate interests.

“In the end, those leaders become ensnared in a web of debt that ensures their loyalty. We can draw on them whenever we desire – to satisfy our political, economic or military needs. In turn, they bolster their political positions by bringing industrial parks, power plants, and airports to their people. The owners of US engineering/construction companies become fabulously wealthy,” a colleague told him when he asked why his job was so important.

Kenyans, who are already suffering financially due to the COVID-19 pandemic which saw nearly 2 million jobs in the formal sector disappear last year, will now be confronted with austerity measures at precisely the time when they need government subsidies and social safety nets. Season Two of SAPs is likely to make life for Kenyans even more miserable in the short and medium term.

We will have to wait and see whether overall dissatisfaction with the government will influence the outcome of the 2022 elections. However, whoever wins that election will still have to contend with rising debt and unsustainable repayments that have become President Uhuru Kenyatta’s most enduring legacy.

Continue Reading

Op-Eds

Haiti: The Struggle for Democracy, Justice, Reparations and the Black Soul

Only the Haitian people can decide their own future. The dictatorship imposed by former president Jovenel Moïse and its imperialist enablers need to go – and make space for a people’s transition government.

Published

on

Haiti: The Struggle for Democracy, Justice, Reparations and the Black Soul
Download PDFPrint Article

Haiti is once again going through a profound crisis. Central to this is the struggle against the dictatorship imposed by former president Jovenel Moïse. Since last year Mr. Moise, after decreeing the dismissal of Parliament, has been ruling through decrees, permanently violating Haiti’s constitution. He has refused to leave power after his mandate ended on February 7, 2021, claiming that it ends on February 7 of next year, without any legal basis.

This disregard of the constitution is taking place despite multiple statements by the country’s main judicial bodies, such as the CSPJ (Superior Council of Judicial Power) and the Association of Haitian Lawyers. Numerous religious groups and numerous institutions that are representative of society have also spoken. At this time, there is a strike by the judiciary, which leaves the country without any public body of political power.

At the same time, this institutional crisis is framed in the insecurity that affects practically all sectors of Haitian society. An insecurity expressed through savage repressions of popular mobilizations by the PNH (Haitian National Police), which at the service of the executive power. They have attacked journalists and committed various massacres in poor neighborhoods. Throughout the country, there have been assassinations and arbitrary arrests of opponents.

Most recently, a judge of the High Court was detained under the pretext of promoting an alleged plot against the security of the State and to assassinate the president leading to the illegal and arbitrary revocation of three judges of this Court. This last period has also seen the creation of hundreds of armed groups that spread terror over the entire country and that respond to power, transforming kidnapping into a fairly prosperous industry for these criminals.

The 13 years of military occupation by United Nations troops through MINUSTAH and the operations of prolongation of guardianship through MINUJUSTH and BINUH have aggravated the Haitian crisis. They supported retrograde and undemocratic sectors who, along with gangsters, committed serious crimes against the Haitian people and their fundamental rights.

For this, the people of Haiti deserve a process of justice and reparations. They have paid dearly for the intervention of MINUSTAH: 30 THOUSAND DEAD from cholera transmitted by the soldiers, thousands of women raped, who now raise orphaned children. Nothing has changed in 13 years, more social inequality, poverty, more difficulties for the people. The absence of democracy stays the same.

The poor’s living conditions have worsened dramatically as a result of more than 30 years of neoliberal policies imposed by the International Financial Institutions (IFIs), a severe exchange rate crisis, the freezing of the minimum wage, and inflation above 20% during the last three years.

It should be emphasized that, despite this dramatic situation, the Haitian people remain firm and are constantly mobilizing to prevent the consolidation of a dictatorship by demanding the immediate leave of office by former President Jovenel Moïse.

Taking into account the importance of this struggle and that this dictatorial regime still has the support of imperialist governments such as the United States of America, Canada, France, and international organizations such as the UN, the OAS, and the EU, the IPA calls its members to contribute their full and active solidarity to the struggle of the Haitian people, and to sign this Petition that demands the end of the dictatorship as well as respect for the sovereignty and self-determination of the Haitian people, the establishment of a transition government led by Haitians to launch a process of authentic national reconstruction.

In addition to expressing our solidarity with the Haitian people’s resistance, we call for our organisations to demonstrate in front of the embassies of the imperialist countries and before the United Nations. Only the Haitian people can decide their future. Down with Moise and yes to a people’s transition government, until a constituent is democratically elected.

Continue Reading

Trending