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Resisting the Shock Doctrine: A Conversation on Ukraine, Debt and Reconstruction
Key Excerpts from Article on Website of Truthout
Posted: August 20th, 2023
https://truthout.org/articles/resisting-the-shock-doctrine-a...
The IMF and other neoliberal institutions in Ukraine are saying that there are quite a few jobs being created there. But the people I speak to can’t find jobs. On top of that, there are those 12 million people who are abroad. Where will there be jobs for them? There is a lot of talk about the Marshall Plan. But the main lessons from the Marshall Plan I did not see reflected in these recovery plans. First of all, there was the write-off of debts. Second of all, there were grants given to countries, and states were allowed to act as investors and were allowed to directly buy food for families or buy supplies for industries. This is not the case in Ukraine. In reality, a big part of the financial assistance given to Ukraine is in the form of debt. The help supposedly given by the IMF of $15 billion ... is actually $15 billion of debt. And because it’s debt, the interest rate on this debt will be something like 7 or 8 percent. What the European Union is doing with Ukraine is what they did with Greece after 2010. The European Union made an agreement in 2010 with the IMF to gather money to give to the Greek government with very strong and brutal conditionalities. And that’s exactly what [is happening] with the type of assistance given to Ukraine. The debt trap for Ukraine is very dangerous. With the new financial assistance given to Ukraine, in the next ten years, the debt will increase by something like $40 billion. Essentially, from $132 to $170 billion. And the creditors know perfectly that it will be impossible for Ukraine to pay back all this debt.
Note: For more along these lines, see concise summaries of deeply revealing news articles on war and banking corruption from reliable major media sources.
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