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Macro-economic reform undermined the legal economy, reinforced illicit trade and contributed to the recycling of "dirty money" towards Peru's official and commercial creditors.
--
Chapter 14, IMF Shock Treatment in Peru, p. 225

 

Michel Chossudovsky

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There just is no effective control over the financial transactions of the Presidency; one does not differentiate between official and personal expenses in this office...All endeavors to improve budgetary control in Zaire had to stop short before the operations of the central governing authority: La Présidence!
The corruptive system in Zaire with all its wicked and ugly manifestations, its mismanagement and fraud will destroy all endeavors of international institutions, of friendly governments, and of the commercial banks towards recovery and rehabilitation of Zaire's economy. Sure, there will be new promises by Mobutu, by members of his government, rescheduling and rescheduling again of a growing public debt, but no - repeat - no prospect of Zaire's creditors to get their money back in any foreseeable future.
There was, and there still is, one sole obstacle that negates all prospect: the corruption of the team in power.

 

Mobutu Sese Seko

 

The importance of international trade for economic development cannot be overemphasized. But free trade is not the best path to economic development. Trade helps economic development only when the country employs a mixture of protection and open trade, constantly adjusting it according to its changing needs and capabilities. Trade is simply too important for economic development to be left to free trade economists.

 

Ha-Joon Chang

 

The messages of the prophets are essentially indictments of Israel for breach of covenant. They preserved some memory of the old traditions, but were not so naive as to think that the literal demands of the old law would be adequate in their own times. There is no condemnation of the stratification of society as such, rather a condemnation of the injustice and extortion which was done by the powerful. To take a specific example, the old law knew as security for a loan only the pledge (Exod. 22:26). In a simple economy, loans were evidently of an amount which would usually be adequately secured by giving to the creditor some property to hold until the loan was repaid. In case of default, the debtor's property simply reverted to the creditor. No other form of security is presupposed in the Covenant Code, and it is specifically forbidden that an Israelite be a "creditor" to one of his fellows. Already in the reign of Saul the situation had changed, Those who gathered about David as outlaws included those who had "creditors" (I Sam. 22:2), and who therefore had to flee. Under the old pledge system of security there would be no possible occasion for flight from the community in case of default. A totally different legal doctrine had come into practice whereby the person of the debtor was security for a loan. Upon default the creditor could seize him (or his family) as a slave, possibly without any legal action at all. The only alternative to slavery would have been flight. This doctrine is identical to that of Babylonian law, and no doubt of the Canaanites as well. It is in the law of the monarchy that Canaanite influence is doubtless to be posited, but it is a legal tradition in total contradiction to the customs and morality of early Israel. Amos protested violently against the way the legal doctrine was practiced, as did most of the prophets (Am. 2:6; Hos. 12:8-9; Mic. 2:1-2). The later lawcodes illustrate beautifully the way in which the early traditions, and the needs of business were brought into harmony. The older pledge system was simply inadequate for a commercial economy; and if the person of the debtor was to be protected, so also must the rights of the creditor to some security for his loan to be guaranteed. Therefore, Deuteronomy and the Holiness Code (Lv. 17-26) accept the doctrine of bodily liability, but place restrictions upon the powers of the creditor over the defaulting debtor. In the Holiness Code he is not to be treated as a slave, nor given the legal status of a slave, but rather to be as a hired laborer.

 

George E. Mendenhall

 

The collapse of the standard of living, engineered as result of macro-economic policy, is without precedent in Russian history: " We had more to eat during the Second World War."

 

Michel Chossudovsky

 

"The strongest argument for free enterprise is that it prevents anybody from having too much power. Whether that person is a government official, a trade union official, or a business executive. If forces them to put up or shut up. They either have to deliver the goods, produce something that people are willing to pay for, are willing to buy, or else they have to go into a different business."

 

Milton Friedman