Recent Articles

Debt Justice

The IMF and WB have lost legitimacy, We need new alternatives Syed Abdul Khaliq (10 April 2019) This article is part of a series by openDemocracy and the Bretton Woods Project on the crisis of multilateralism. The views expressed are those of the author’s only, and are not necessarily representative of either organisation. The consequences of IMF and World Bank policies have been traumatic for the people of South. They have increased poverty and inequality, deprived poor nations of their crucial resources, and directed their wealth towards the North. They ... Read More »

British Raj stole $45 trillion from colonial India during 200-year Rule

“Renowned economist Utsa Patnaik, in her recent research on the fiscal relations between British Raj and Colonial India, has tried to answer an important question, the people of subcontinent are likely to be interested to know”………………………………….. –When renowned economist Utsa Patnaik began to sift through old tracts of British economic history in order to understand the nature of fiscal relations between London and colonial India, the fate of the Kohinoor wasn’t much in the news; Shashi Tharoor hadn’t yet spoken ... Read More »

Pakistan to pay China $40b on $26.5b CPEC investments in 20 years

ISLAMABAD: Pakistan will pay $40 billion to China in 20 years in shape of repayments of debt and dividends on a $26.5 billion investment under flagship China-Pakistan Economic Corridor (CPEC), documents of the Ministry of Planning and Development reveal. Out of $39.83 billion – to be precise – the debt repayments of energy and infrastructure projects amount to $28.43 billion. The rest of $11.4 billion will be paid in shape of dividends to the investors, showed the official estimates. The figures ... Read More »

Is Pakistan on the way to live without IMF?

By Abdul Khaliq  (1 Dec 2018)- Pakistan is perhaps the only country in South Asia with a history of repeated engagements with the IMF – 21 loan agreements since 1959. The last one was concluded in September 2016. Despite that Pakistan’s economic woes hasn’t resolved. Its economy is still in worst shape, with debt is soaring, the current-account deficit is widening and foreign exchange reserves are falling; with just around $ 9 billion at the moment, not enough to cover ... Read More »

Colombo Declaration on Illegitimate Debts

(By CADTM – 8 April 2018) We, the participants of the 7th CADTM South Asia workshop from Bangladesh, Nepal, India, Pakistan, Sri Lanka, Japan as well as from Belgium and France gathered at Colombo, Sri Lanka from 6-8 April 2018 acknowledge and affirm that illegitimate debt is a mechanism used to transfer wealth created by toilers to the benefit of capitalists and other exploiting classes. We also declare that public debt (both external and internal) involves a massive transfer of wealth ... Read More »

Is Pakistan falling into China’s debt trap?

By Abdul Khaliq (16 April 2018) • Pakistan will have to payback $100 billion to China by 2024 of total investment of $18.5 billion, which China has invested on account of bank loans in 19 early harvest projects, under CPEC.• China has become the biggest lender to Pakistan after surpassing Japan. Pakistan owes $19 billion (1/5 of its total debt) to China. The CPEC loans will add $14 billion to Pakistan’s total public debt, totalling to $90 billion by June ... Read More »

How micro-finance impinge on human rights

By Philip Mader (13 November) This blog post is based on a talk given at the ETOC Conference on “Financialisation, Eco-Destruction, and Human Rights beyond Borders” in Brussels, September 28-29, 2017, and should not be regarded as an exhaustive academic paper but as food for thought.  Microfinance and financial inclusion are overlapping practices, and both are built on the same idea: that financial dealings with the poor will create a win-win arrangement of profits for financiers, and poverty alleviation and ... Read More »

CPEC – A “game-changer” or another “East India Company”?

China-Pakistan Economic Corridor (CPEC) is a big business proposition with huge Chinese investments spreading over 15 years having a total outlay of up to $46 billion: $35 billion on the energy sector in the mode of IPPs (independent Power Producers) and $ 11 billion for infrastructure development; like industrial zones roads and railways etc. A good part of these investment projects comprises loans from Chinese banks, of which full details are not available, generating fears of further indebtness of already ... Read More »

Cambodia rejects paying ‘dirty debt’ to the US

By Vannarith Chheang (21 March 2017) The United States has renewed its demand for Cambodia to repay a war debt of $500m amid President Donald Trump’s push to improve the state budget. Such a demand has met with an outcry from Cambodian political leaders and their people, who have consistently called the debt “dirty” and “blood-stained”. Clearly, the memory of the United States’ war in Indochina continues to shape Cambodian perceptions of and foreign policy towards the US. Cambodia is reluctant to pay the debt. However, should ... Read More »

Three Waves of Debt Repudiations in the USA during19th Century

(By Eric Toussaint) – 7 November The United States, on three separate occasions, governments have successfully repudiated public debts owed to private bankers. In the 1830s, four of the United States repudiated their debts – Mississippi, Arkansas, Florida and Michigan. |1| The creditors were mainly British. Alexander Nahum Sack writes in this regard: “One of the main reasons justifying these repudiations was the squandering of the sums borrowed: they were usually borrowed to establish banks or build railways; but the banks failed and the ... Read More »