IMF to Haiti: Freeze Public Wages


Disaster Capitalism Headed to Haiti

Readers of the The Shock Doctrine know that the Heritage Foundation has been one of the leading advocates of exploiting disasters to push through their unpopular pro-corporate policies. From this document, they’re at it again, not even waiting one day to use the devastating earthquake in Haiti to push for their so-called reforms. The following quote was hastily yanked by the Heritage Foundation and replaced with a more diplomatic quote, but their first instinct is revealing:

“In addition to providing immediate humanitarian assistance, the U.S. response to the tragic earthquake in Haiti earthquake offers opportunities to re-shape Haiti’s long-dysfunctional government and economy as well as to improve the public image of the United States in the region.”

To great fanfare, the IMF announced a new $100 million loan to Haiti on Thursday. In one crucial way, the loan is a good thing; Haiti is in dire straits and needs a massive cash infusion. But the new loan was made through the IMF’s extended credit facility, to which Haiti already has $165 million in debt. Debt relief activists tell me that these loans came with conditions, including raising prices for electricity, refusing pay increases to all public employees except those making minimum wage and keeping inflation low. They say that the new loans would impose these same conditions. In other words, in the face of this latest tragedy, the IMF is still using crisis and debt as leverage to compel neoliberal reforms.

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