The IMF - A Global Protection Racket

In the seven years I have lived in New Zealand, I havewe stopped selling exports and overseas travel to
often heard new immigrants from Europe, Southtourists - owing to circumstances which were totally
Africa and North America refer to it as a secondbeyond our control.
world country. As evidence of New Zealand's secondA Second World Perspective on the Sustainability
world status, they cite the fact that Kiwis wearMovement
thermal underwear, down vests and mufflers to workAll this got me thinking whether New Zealand, like
in the winter (owing to ambient indoor temperatures ofIceland, Greece, Italy, Spain, and Portugal, which all face
60-63 degrees F - energy is already extremelymassive debt problems through no fault of their own,
expensive here); that most professional women feelmight have something to offer the global sustainability
guilty using a clothes dryer and still hang their washingmovement. Although it rarely makes the nightly news,
on the line; and that Do It Yourself and jury-rigging withthe sustainability movement is a growing influence in
duct tape and Number 8 wire are a matter of nationalthe lives of the educated middle class in most
pride and summoning a repairman is seen as anindustrialized countries. Millions of people world wide
unmanly extravagance.accept that they face a less energy intensive future
The terminology first, second and third world was(whether due to a shrinking global economy, fossil fuel
originally coined during the Cold War to designateddepletion or international treaties to reduce carbon
capitalist countries aligned with the US (first world),emissions). Which means millions of people are already
communist countries aligned with the USSR (secondmaking conscious lifestyle choices to reduce their
world), and countries aligned with neither (third world).energy and carbon footprint.
Recently, however, especially the terms first and thirdIt's a historical fact that New Zealand was a latecomer
world are used to describe economic status, asto globalization and the pressure this produced to
opposed to political alignment.become an export-driven economy. Prior to the
The term "second world" has definitely taken on adisastrous "structural adjustment" New Zealand under
new meaning in New Zealand - especially since thewent in 1984 (aka Rogernomics), Kiwis got along just
International Monetary Fund (IMF) came knocking atfine without the billions of dollars of cheap Asian
our door last week. I wonder if this might also be theimports that dominate our retail shelves at present. In
case in Iceland, Greece, Spain, Italy and Portugal - otherfact women of my own generation talk of growing
countries facing unsustainable debt levels as theytheir own fruit, veggies and chooks (chickens) in their
struggle to keep vital public programs going.backyard when their children were young, as well as
Three days ago Radio New Zealand National reportedcanning surplus fruit and veggies for winter, sewing
that the IMF was asking the New Zealand governmenttheir children's clothes, knitting their jumpers (sweaters)
to make further cuts in public spending. I had shivers upand saving and recycling string, rags, scrap metal and
my spine, flashing back to the time my grandmotherany other household waste that could be used for
had a collision with a known Mafia figure and oursome other purpose. It is intriguing to watch many of
family received one of those offers you can't refuse.them fall back on these deeply engrained habits, as
My colleagues in the National Health Service (where Ithey make conscious choices to reduce their energy
work as a child and adolescent psychiatrist) and I areand carbon footprint.
very wary of the IMF's so-called "recommendations." InNew Zealand also has the advantage of having a
fact we can see little difference between the IMFmainly agricultural economy and a slower rate of
knocking at your door and a mafia or gang memberurbanization than other industrialized countries. At
trying to sell you a protection racket.present 55.6% percent of Kiwis live in New Zealand's
New Zealand is the only industrialized country I know12 cities, as opposed to an average 75% urbanization
of that didn't implement economic bail-outs for banks,rate for other industrialized countries. Thus making it
jobless workers or families losing their homes.relatively easy for at least half of New Zealanders to
Moreover, as a result of the recession, ourundertake concrete local energy conservation,
government has already made major cuts to publicalternative transport and waste reduction initiatives, as
spending, resulting in the layoff of 1500 public servicewell as creating community gardens, farmers markets
workers. However the IMF expects us to go stilland community supported agriculture schemes.
further, with specific recommendations that we endNew Zealand Transition Towns Movement
free GP visits (for children, seniors and theMost of New Zealand's sustainability related
disadvantaged) and student loan rebates (to addressorganizations are locally based and formal or informal
an extremely critical shortage of doctors andmembers of Transition Towns New Zealand, a
teachers). In other words they want us to "privatize"member of the global Transition Towns movement
aspects of our health care system and tertiarythat started in Ireland and the UK. In perusing the TT
education.New Zealand website, it is interesting to see how
The Pressure to Privatize Our National Health Servicemany local groups have taken up concepts that
Given that New Zealand has a national health service,originated with the Y2K movement of the late nineties
and that both National (the conservatives) and Labour- which was advising people on preparing for the
(the liberals) support the belief that health care is apossible "End of Civilization as We Know It." The
basic human right, I see a clear subtext here. It is wellfollowing are key examples:
known the people who run the IMF (who for the mostInitiatives to improve local food (and water) security:
part represent financial institutions such as banks,¨ De-paving - digging up private and public driveways
brokerage firms and insurance companies) do notand parking lots and replacing them with backyard
accept the notion of a right to health care. They viewveggie gardens and community orchards and gardens.
health care delivery as a commodity with immense¨ Lawn liberation - replacing lawns and ornamental
profit potential - and see absolutely no reason whytrees and shrubs with fruit and nut trees and
private health insurance companies should be deniedproductive gardens.
the right to make a profit from illness and human¨ Development of "bioregional" transportation security
misery in all industrialized countries, as they do in the(that doesn't rely on imported oil) for food delivery (99.9
US. I know this because the structural adjustmentpercent of human existence has relied on a bioregional
programs they impose on debtor nations alwayseconomic model - which entails sourcing the majority
includes a demand that these countries abolish theirof food and other essentials within a 100 mile radius)
publicly funded health systems and open their markets¨ Development of strong community networks to
to private insurance companies.provide neighbourhood patrols in the absence of police
What Happens if We Refuse an Offer We Can'tservices.
Refuse?¨ Neighborhood systems of rainwater collection and
If New Zealand were frittering away IMF money, Ipurification
could accept that the IMF might be in a position to¨ Strong local credit unions and locally owned
dictate how we spend it. However New Zealandbusinesses and cooperatives
hasn't borrowed any money from the IMF. At present¨ A local currency or trading system
New Zealand borrows approximately $250 millions per¨ Building a solid tradition of neighbors sharing with
week from commercial lenders at 4 - 6.5% interest.one another and helping each other one other out.
We pay a low interest rate because we have an¨ Increasing local expertise in permaculture and
AA+ (countries receive credit ratings just likebiointensive agriculture techniques, should industrial
individuals).fertilizers and insecticides (which are manufactured
The threat, of course, is that if New Zealand fails tofrom fossil fuels) become unavailable or prohibitively
cut public spending enough to satisfy its global lenders,expensive.
our credit rating will be downgraded from AA+ toInitiatives to improve energy security:
BBB- (like Iceland and Greece) and our government will¨ Neighborhood and community solar and wind
be force to borrow from the IMF (like Iceland andpower energy systems
Greece). We will then be forced to pay 18% interest¨ A shift in urban planning to put essential services
and agree to draconian cuts in health and education.closer to residential areas, facilitating increased use of
Fitch and other rating agencies are supposed to bepublic transportation and an increase in active transport
independent from the financial institutions that control(walking, cycling, skateboarding, etc.).
the IMF. However recent criminal prosecutions suggest¨ Ensuring that everyone in your neighborhood has
that they aren't - and that banks and other financialdry firewood, candles and oil lamps and ensuring that
institutions can "buy" favorable or unfavorable creditschools, churches and other neighborhood gathering
ratings to suit their commercial interests.sites are similarly prepared.
If New Zealand was inhospitable to foreign companiesLike the Y2K movement that proceeded it, the
wanting to do business here or irresponsible inTransition Town movement emphasizes the
collecting taxes or managing government fraud andover-riding importance of building strong social
corruption, it would be a far different story. Howevernetworks to cushion the impact of a sudden economic
New Zealand is consistently designated as the countryshock or infrastructure breakdown. This approach is
with the least red tape and regulation for foreignsupported by extensive medical and psychological
businesses, as well as the most fraud free. We alsostudies showing that people with strong social
have a well-earned reputation for frugality. Ournetworks recover more quickly from any illness,
government ran a surplus between 1999 and Octoberpersonal crisis or catastrophe.
2008 - the month the world economy collapsed and