[MsDemeanor]

The most worrying part of this craziness is it isn't far off the official US strategy. The International Monetary Fund has extended $100m in loans to Haiti for the disaster, and according to The Nation magazine, "These loans came with conditions, including raising prices for electricity, refusing pay increases to all public employees except those making minimum wage, and keeping inflation low." I suppose the idea is not to make things even worse. Give them more than the minimum wage and then you'd have binge-drinking to worry about as well.

Here's an update. Surprisingly, it's from the same The Nation article from which the author got the above quote. The IMF is working to make the loan non-repayable, in essence a grant. (The IMF could not quickly provide a grant to Haiti, so it instead provided a loan at zero interest with very lenient repayment terms.)

Today, the IMF put out an announcement clarifying the terms of its new loan to Haiti--it's "an interest-free loan of $100 million in emergency funds." A spokesman for the IMF emailed me to confirm that "the US$100 million loan does not carry any conditionality. It is an emergency loan aimed at getting the Haitian economy back to function again..." The IMF's managing director Dominique Strauss-Kahn said in a statement that the IMF would immediately work to cancel the entirety of Haiti's debt ($265 million) to the fund:


"The most important thing is that the IMF is now working with all donors to try to delete all the Haitian debt, including our new loan. If we succeed--and I'm sure we will succeed--even this loan will turn out to be finally a grant, because all the debt will have been deleted."
In other words, as the IMF is processing a loan, it is also making a public promise to try to cancel it.


Klein says that this is "unprecedented in my experience and shows that public pressure in moments of disaster can seriously subvert shock doctrine tactics." Neil Watkins, Executive Director of Jubilee USA, likewise hails the IMF's response. "Since the IMF's announcement last week of its intention to provide Haiti with a $100 million loan, Jubilee USA and our partners have been calling for grants and debt cancellation--not new loans--for Haiti. We are pleased that Managing Director Strauss-Kahn has responded to that call."


Watkins and others will continue to follow the issue, holding the IMF to its commitment to debt relief and non-conditionality. They're also pressing the case on Haiti's other outstanding debt. The largest multilateral holders of Haiti's debt are the Inter-American Development Bank ($447 million), the IMF ($165 million, plus $100 million in new lending), the World Bank's International Development Association ($39 million) and the International Fund for Agricultural Development ($13 million). The largest bilateral loans are held by Venezuela ($295 million--hello, Chavez!?) and Taiwan ($92 million).

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