Richmond California boycotts World Bank ( LOL LOL LOL )

[MORTARDUDE]

http://www.bayarea.com/mld/cctimes/news/5713651.htm Richmond boycotts World Bank
By Rebecca Rosen Lum
CONTRA COSTA TIMES

RICHMOND -The City Council passed a resolution this week supporting a boycott of World Bank bonds until the agency cancels all its past debt claims against impoverished countries.

The resolution, authored by Mayor Irma Anderson, passed 7-0, with Councilman Tom Butt abstaining.

A lending agency supported by member nations, the World Bank raises most of its money by issuing bonds sold to investors to help finance a broad range of infrastructure needs.

Labor unions, churches, universities and a growing number of cities are exerting pressure on the lender by refusing to buy its bonds.

"We've got a global economy," Anderson said. "We are all very close."

"The World Bank threatens the stability of third world countries," said Jeremy Smith of Richmond Vision 2000. "The World Bank would rather see devastation in Africa (due to the AIDS crisis) than miss a payment. The World Bank would rather see children starve in Peru than miss a payment. Let us raise a collective voice in support of this resolution."

Poor countries' debt skyrocketed during the 1970s when lenders were eager to extend loans. A sharp rise in world interest rates in the early 1980s hit debtor countries hard since most of their loans were tied to short-term interest rates.

Their exports plunged as commodity prices fell. Third world nations say that subsidies developing countries pay their farmers drives down the prices of those produced by poor nations.

Today, third world debt is in the trillions of dollars.

In 2001, the World Bank posted a profit of more than $1.2 billion according to its annual report.

Supporters of the boycott say nations struggling to overcome health care crises are using desperately needed money to pay off debt service.

The World Bank issued a statement this month saying poor countries can help themselves out of debt by investing more money in health and education. Another bank report suggested poverty would continue to cripple much of Africa even if economic growth continues.

American cities joining the boycott include Cambridge, Mass.; Milwaukee, Wis.; Boulder, Colo.; Oakland and Berkeley.

Butt agreed with the boycott in principle, but said he does not think city councils are the appropriate forum to discuss national and international policy.

"I heard a similar proposal at church and I signed a petition," he said.

West County mayors have all supported the resolution, Anderson said, adding that Richmond has a special bond with Africa.

"The incidence of AIDS (in Contra Costa County) is the highest in the city of Richmond," she said.


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Contact Rebecca Rosen Lum at 510-262-2713 or rrosenlum@cctimes.com.