Debtocracy Page #4

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They managed to prove that their debt

was not only odious, but also

illegitimate and unconstitutional.

Welcome to Ecuador.

Rafael Correa President of Ecuador

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We have national commitments,

more urgent than international ones.

We'll fulfill our international

obligations as soon as we are able.

But our priorities are clear.

Life comes first, repaying debts second.

Ecuador could have been one of

the richest countries in South America.

But, from the moment that

oil was discovered...

all the country knew was dictators,

poverty, debt and economic hit-men.

John Perkins:
Activist, former economic hit-man

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In 1982, Ecuador was visited by the IMF

and a committee of wise men

representing the country's big lenders.

Ecuador had been forced to borrow

more and more, in order to fulfill past obligations.

Hugo Arias:
Head of Ecuador audit committee

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Ecuador was constantly being looted

by the countries of the North.

For example, from 1980-1990

up to 2005

almost 50% of the government budget

was used to repay debts.

Namely, about

Only 4% was for health care.

Four billion for repaying debts,

Four billion for the debt,

We were killing our own people.

The people of Ecuador protested.

For a moment

things appeared to be in control

when Lucio Gutirrez took over.

Gutirrez promised social benefits.

He spoke like a socialist

but, as soon as he took office,

he made a new deal with the IMF

and implemented measures

of extreme austerity.

The people decided that he should leave

with the same means of transport

favoured by Argentinian presidents:

the chopper.

Vice-president Palacio takes over.

He has good intentions, but soon

succumbs to Washington.

So the people turn to the only politician

who'd resisted international pressure.

Rafael Correa.

Song:
una sola vuelta

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From the first round

Correa, from the first round.

Ecuador from the first round.

Hope is triumphant.

We are your united people.

We stand united.

March on, Ecuador Alliance.

March on for justice.

March on for your rights.

March on, Correa, for Ecuador.

From the first round

Correa, from the first round.

Ecuador from the first round!

Correa studied economics

in Europe and the USA

and knows very well how to handle

the World Bank and the IMF

as long as one has the political will.

As Minister of Finance, in 2005,

Correa declared that it was unnatural

to use oil revenues

in order to pay back the debt.

This was unfair to the people.

He said that 80% of the revenues

should be used for health benefits,

education and the creation of jobs

and only 20% should be channeled

towards repayment of the debt.

The World Bank said that they wouldn't

lend to Ecuador if such a law passed.

This was an obvious interference

with Ecuador's internal policy.

Correa declared that he would never

follow such instructions from the WB.

He chose to resign rather than succumb.

This made him very popular.

The people said:
"This man

chose to resign from minister"

"in order to defend the dignity

and the interests of the people".

Correa was finally elected in 2006.

One of his first actions was

to deport the representative of

the World Bank

and ask the IMF delegation

to leave the Central Bank's premises.

Officials of the IMF such as Bob Traa,

who later came to Greece

had already been dubbed "unwanted"

by the people of Ecuador.

Those callous, dishonest bureaucrats

have to respect our country.

This is why we deported the WB delegate.

We maintain the right to restore

the damage done to our country and

declare our debt to the WB illegitimate.

Six months later, Correa

went a step further.

He fulfilled the demand

of social organisations

for an Audit Committee.

I was one of the people

Correa chose for the Committee.

organisations participated.

We were to examine all debt contracts,

from 1956 to 2006.

We worked for 14 months.

We examined the bond debt

the debts to the IMF, the World Bank

and other international organisations.

We examined the debt to countries

such as France, Japan and Germany.

Finally, we examined Ecuador's

internal national debt.

The battle to access the data

was tremendous.

In the Ministry of Finance, our

associate Alejandro Olmos Jr

and myself, were declared

"personae non gratae".

The officials in the Ministry of Finance

wrote to the Minister

to complain and denounce

both mine and Olmos' actions

claiming that we were inflicting

harm on the Ministry's employees.

We laughed it off, but you imagine

how difficult it was

after we'd been accused

of being the "bad guys"

in that procedure.

Despite the setbacks, the Committee

managed to complete its work

and discovered that a big part

of the debt was illegitimate.

They acknowledged their findings

to the state, who told the people.

The work of the Committee was made

public, and this is very important.

The people of Ecuador now knew

why the debt contracts of past regimes

especially those of the year 2000,

were illegitimate.

Song:
"Dale Correa Rafael"

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March on, Rafael Correa!

Our homeland is marching against

the decadent Congress

and the bureaucratic dictatorship

of the old politicians.

Power belongs to the people.

Your brother tells you so.

The people of Ecuador

want a new constitution.

March on, Correa.

Correa, strike against the "bosses"

who devastated our homeland.

March on, Correa.

March on, Rafael Correa.

Based on the findings of the Committee,

the government proved that

the debt was illegitimate

and declared cessation of payments

for 70% of Ecuador's debt in bonds.

Those in possession of Ecuador's debt

sold bonds at 20% of their value.

The government started

to buy them secretly.

They gave 800 million dollars and

bought off 3 billion dollars of debt.

This significant reduction allowed

an improvement in living conditions.

Furthermore, they rid themselves of the interest

they would have had to pay till 2012 or 2030.

They saved at least 7 billion dollars,

which was great for the country.

This allowed the government to increase

expenditure on health, education

the creation of new jobs,

and improvement in infrastructure.

In Greece, historians,

economists and political analysts

use up tons of ink daily to tell us

how to handle our national debt.

Yet, there is one question

very few pose.

Do the Greek people really owe

as much as their creditors claim?

The debt incurred by Greece recently

bears evidence of illegitimacy.

For example, the authorities received

"gifts" from companies such as Siemens

who, together with Siemens Hellas,

bribed ministers and officials

for at least a decade,

in order to gain contracts.

In this case, we have evidence

of illegality and illegitimacy.

So, this debt should be examined

in court. To me, this is evident.

Greek justice proved inadequate

in the Siemens case.

And it was too slow

in other cases of deals

made behind the people's back,

which have increased the debt.

With the infamous swaps of 2001,

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