REPORT #622 March 2003

A Third World view from Ray Auxillou/Belize

For small countries like Belize, we have to understand the economic and financial makeup of the world. Unlike in times past the G7 countries, those industrialized and technologically advanced nations need to control the economies, resources and markets of the third world. If you don't do it through a standing occupying army, how can you do it?

Well the answer is THE NEW WORLD ORDER, a substitute for colonial type individual G7 nation imperialism, by a different sort of economic imperialism, in which you let people govern themselves, but you control their own national economies, finances and commodity production, more subtly and deftly than before.

The real power of the world and that over the third world is manifested in the Bretton Woods Institutions. Like the World Bank, International Monetary Fund and the General Agreement on Trade and Tariffs, or GATT. In these latter years, more subsidiary institutional lending institutions, such as the WTO and more regional lending institutions have been created and trade agreements, broadening the base of the core control plans using the Bretton Woods Institutions. But make no mistake about it, the third world is still at the mercy of the G7 nations. Local third world nations are enslaved by short term local political greed and ambition actions, sold by soft selling salesmen from the foreign lending institutions controlled by the G7..

The role of the international lending banks ( not local competitive and world competitive banks ), but those that lend to governments for infra-structure projects is to convince third world countries that they should concentrate on GDP. Economic growth using project money from the International lending institutions to spur their economic growth through borrowing. The borrowing of course is always done in foreign exchange and must be paid in foreign exchange, no matter the local currency. Don't forget the financial burden of the studies, foreign experts and compound interest that cream off foreign exchange costs from a third world country. Local third world politicians through the shorter term election process ( 5 years in Belize ) changeover, became and remain adjusted to dependence on foreign loans to implement infra-structure projects to supposedly boost GDP. None of them these days in this era, because of the short life span of an election term can ever now switch over to self-sufficiency from annual local revenues. In the process a local third world country becomes reliant on purchasing G7 produced manufactured goods and tools and selling locally produced commodities at world market prices that are often manipulated seasonally, by internal G7 country disguised price supports, using various semantics and changes of names, through currency trades to be sold at low prices, playing the seasonal differences between the tropics and the northern hemispere seasons for instance.

The IMF is the G7 NEW WORLD ORDER financial court, that brings nations who have mortgaged their financial future to lending institutions of the G7 into the equivalency of bankruptcy receivership, but unlike local corporate national bankruptcy ACTS and laws, a debtor nation can never pay off the creditors at so many cents on the dollar and be free and clear, but are forever indebted ( or enslaved in the NEW WORLD ORDER ) to their creditors. No third world nation has ever passed a National Bankruptcy Act up to today; that would make their own government and nation a bankrupt and force the International Lending Institutions to accept responsibility for overlending to a nation and get repaid as a creditor like a corporation at so many cents to the debt dollar. A legal anomaly so glaring, one has to wonder at the stupidity of local third world leaders?

Indebted countries thus get themselves into a debt fix, due to the demands of local short term election period campaign promises and find themselves in a financial bind through to much foreign borrowing, instead of using their own annual government revenues properly. A balanced budget for instance?

The subsequent vicious cycle, in a perpetual foreign debt enslavement make local economies go through fits and starts depending on the political party running for office and makes for cycles of reduced spending and austerity, effecting local social programs, reducing the size of the civil service, blandishments to reduce tariffs and restrictions on foreign investment and imports from the G7 nations, with much heavier taxation than is practical for building a nation. Local self subsistant economies suddenly find themselves ever more like a squirrel running in a circular cage like a treadmill and unwittingly in many cases of re-orientating their populace to one crop exports in competition with others in the third world, which pushs down world commodity prices to the advantage of the G7 countries.

In the NEW WORLD ORDER, the local protective tariff is becoming a thing of the past, though it serves small third world countries exceedingly well as a development tool.

GATT is the main structure for tariffs and GATT AGREEMENTS are imbedded in multilateral treaties that are binding on all signatory countries, both rich and poor. But the World Bank and the IMF are powerless really, to be able to dictate policies to any of the G7 countries. GATT rulings and sanctions are powerful and are beyond independent appeal, such as from Belize for instance. GATT agreements usually favor the G7 and enslave subtly, third world nations, who do not understand the new Imperialism. The GATT and the WTO are the two biggest tools of economic imperialism when it comes to trade. Some of the things these institutions do, are attempt to eliminate protections for local domestic producers in third world countries.

Though in G7 countries these policies are continued but under different names and rationalizations using semantics. The rulings are good for you, they the G7 say through their institutions, but not for them as they go busily about, preserving their local producers.

OPEC was one of the more successful organizations by the third world oil producers to fight this Imperialism. There are nowadays a few others, like coffee cartels. But in general, GATT G7 countries discourage through insidiuous policies and education, the idea that third world countries should organize together and restrict the export of natural resources to gain world price increases and extend commodity production lifetimes, that will eventually be mined out completely. The rape of resources in other words.

Another control mechanism has been G7 sponsored property rights under the GATT to assure their protection in all signatory countries. One that is being worked upon is the open market for forbidden chemicals and environmental damaging products, or drugs that are expired, for sale by the G7 to third world nations, even though such products have been forbidden and labelled unsafe in their own nations.

You really have to watch tax incentives in third world countries, because the goal by the G7 international corporations is to make free from costly environmental regulations, generous tax abatements and create a false aura of friendly foreign investment facilities.

One spinoff of the International Corporation from a G7 country, is to eliminate inefficient small producers. Yet social programs and real wealth and productivity indicate the opposite goal should be that desired by most third world countries. Efficient or inefficient, what a third world nation needs is local producers, especially small countries like Belize.

Education for locals done abroad is fraught with the goal of brainwashing by G7 country educational institutions. Most local natives lack the sophistication to sift the wheat from the chaff and cull out the ideas and lessons that would enslave their countries.

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