Image by alancleaver A ground-breaking global gathering is scheduled to begin this Friday (May 6-8, 2011) in Athens which will bring together debt justice and social justice activists together from all over the world. As debt and austerity create inequality and poverty within Europe, the event aims to work toward developing a common understanding of the financial crisis among trade unions, social movements and NGOs, as well as focusing on forming coherent plans for common activities and demands for economic justice. The meeting is also expected to formerly support the launch of the call for a debt audit commission in Greece. (I have included many articles on odious debt on this blog, and I believe strongly in this initiative for many reasons, and if you look to the side panel you will notice a video called “Debtocracy” which is an excellent documentary (about 60 minutes long) about this very subject.)
According to Alexander Sack, who theorized the doctrine of odious debt, “If a despotic power incurs a debt not for the needs or in the interest of the State, but to strengthen its despotic regime, to repress the population that fights against it, etc, this debt is odious to the population of all the State. This debt is not an obligation for the nation; it is a regime’s debt, a personal debt of the power that has incurred it, consequently it falls with the fall of this power” (Sack, 1927).
According to Alexander Sack, who theorized the doctrine of odious debt, “If a despotic power incurs a debt not for the needs or in the interest of the State, but to strengthen its despotic regime, to repress the population that fights against it, etc, this debt is odious to the population of all the State. This debt is not an obligation for the nation; it is a regime’s debt, a personal debt of the power that has incurred it, consequently it falls with the fall of this power” (Sack, 1927).
Already, details of an independent audit to be undertaken into providing a clear picture of Ireland’s national debt were unveiled in Dublin on May 4. Areas of specific reference will be to determine to whom the debt is owed, when it was incurred, how much of it is senior, guaranteed and subordinated debt, and when repayment is due to each creditor.
The Audit will follow similar processes undertaken in Greece and other deeply indebted countries. It will be led by Dr Sheila Killian, Head of Department and Senior Lecturer in Accounting and Finance at the University of Limerick and supported by the UNITE trade union, Afri, Eurodad member Debt and Development Coalition Ireland as well as other trade unions and civil society groups.
Debt audits have been a key means of people challenging their country’s unjust debts, educating and empowering citizens and creating space for a more people-centered form of economics. They are a key call of many Southern campaigners, some of whom will travel to Greece to discuss the way that audits and other demands for debt justice can help build a new financial and economic model.
Over recent years 32 countries have had debts cancelled through the official IMF and World Bank debt relief process. However, this usually takes several years, requires countries to make repayments in the meantime, leads to new loans and debts being created, and requires countries to follow IMF and World Bank conditions such as privatisation and deregulation.
Core Eurozone banks and Berlin and Paris would likely be against such a move, but support for this initiative is growing across the political spectrum.
The seminar is aimed at social movements, trade unions and NGOs. The meeting will also support Greek activists in their planning for greater social and economic justice and attract international media attention through public sessions and a press conference. The conference will launch an official declaration of solidarity and support for the proposed Greek debt audit and highlight common concerns among Northern and Southern debt and social justice groups.
Sessions include:
- Gaining a deeper understanding of the nature, relevance and politics of debt in Europe and globally
- Learning the lessons of debt and austerity from the global South
- Exploring the resurgence of the IMF and austerity in Europe and globally
- Exploring the implications of restructuring, repudiating and paying the debt
The event is expected to feature speakers from Argentina, Brazil, Zimbabwe, the Philippines, Tunisia and from across Europe, including deeply indebted European countries.
The conference is supported by: the European Network on Debt and Development (Eurodad), the Committee for the Abolition of Third World Debt (CADTM), the Bretton Woods Project UK, Research Money and Finance, Debt and Development Coalition Ireland, Afri Action from Ireland, Jubilee Debt Campaign UK, the Observatorio de la Deuda en la Globalización Spain.
For a concise overview, see (in French) “ La dette odieuse ou la nullité de la dette”, a contribution to the second seminar on International law and Debt organized by CADTM in Amsterdam in December 2002, http://www.cadtm.org/La-dette-odieuse-ou-la-nullite-de . See also “Topicality of the odious debt doctrine”, http://www.cadtm.org/Topicality-of-the-odious-debt,3515 and http://www.cadtm.org/Topicality-of-the-odious-debt
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