Posted on 04/30/2007 7:57:23 PM PDT by jdm
CARACAS, Venezuela - President Hugo Chavez announced Monday he would formally pull Venezuela out of the World Bank and the International Monetary Fund, a largely symbolic move because the nation has already paid off its debts to the lending institutions."We will no longer have to go to Washington nor to the IMF nor to the World Bank, not to anyone," said the leftist leader, who has long railed against the Washington-based lending institutions.
Chavez said he wanted to formalize Venezuela's exit from the two bodies "tonight and ask them to return what they owe us."
Venezuela recently repaid its debts to the World Bank five years ahead of schedule, saving $8 million. It paid off all its debts to the IMF shortly after Chavez first took office in 1999. The IMF closed its offices in Venezuela late last year.
Chavez made the announcement a day after telling a meeting of allied leaders that Latin America overall would be better off without the U.S.-backed World Bank or IMF. He has often blamed their lending policies for perpetuating poverty.
The leftist president also has repeatedly criticized past Venezuelan governments for signing structural adjustment agreements with the IMF that were blamed for contributing to racing inflation.
Under former Venezuelan President Carlos Andres Perez in 1989, violent protests broke out in Caracas in response to IMF austerity measures that brought a hike in subsidized gasoline prices and public transport fares.
Enraged people took over the streets in violence that killed at least 300 people — and possibly many more. The riots came to be known as the "Caracazo," and Chavez often refers to it as a rebellion against the status quo.
Hugo is taking hard turn to the Left. The dimocRATS will be right behind him if they win in 2008.
I guess this writer does not know how to spell COMMUNIST DICTATOR ... so he uses leftist... let us call a spade, a spade.
Frankly, I think that WE need to withdraw from (1) the United Nations AND (2) the World Banque.
Phuque both of these ANTI-AMERICA, ANTI-FREEDOM (except where it financially “suits” them) “organizations”......
I agree. Its all about the sovereignty. Every time we sign on the dotted line, other nations have influence over our decisions.
Code Pink says: Pullllll outtttt Nowwwww!
The World Bank was not very nice to Venezuela — this was long before Chavez’s time. What happened was that the World Bank had a habit of making loans to poor countries to build their infrastructure.
The conditions are that the country MUST use the engineering firms of the nation doing the lending. (Think Bechtel) They cannot spend the money in country.
So, Bechtel builds a bridge or a water purification system or a highway — but Venezuela can’t pay the money back according to the terms — since the project does not pump revenues in the immediate future. Meanwhile, Venezuela has put up their oil fields or other natural resources as collateral.
These resources are then seized by companies affiliated to the lending nation. (Think Exxon)
As a result of these practices, the WorldBank has a not so good reputation with developing nations.
The significant thing about Venezuela’s recent statement is that they are joining the Iran Oil Bourse — which plans to sell oil for Euros. If you have dollars, you can’t buy oil. This is going to cause big problems for the United States.
We’re seeing the very beginnings of what’s about to happen.
I don’t know which I like least, the IMF of Chavez. Oh well.
To quote Alan Greenspan..., "It is a conundrum"!
Its all about the sovereignty. Every time we sign on the dotted line, other nations have influence over our decisions.
Hold on Hugo! Bella Puglosi is on the way!
A switch from the Dollar backed oil to the Euro backed oil will suddenly take a lot of money out of America because of the conversion difference.
That could be very bad for all kinds of investment and lending affecting interest rates, availability of money, and inflation.
You are so right.
: )
It seems like he’s doing this right before he nationalizes the oil fields tomorrow for May Day, so they can’t try to impose economic consequences.
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