Committee for the Abolition of Illegitimate Debt | November 23, 2017
Eric Toussaint, of the CADTM (Committee for the Abolition of Illegitimate Debt), explains the difficulties encountered by States overly dependent on raw materials.
With a PhD in Political Science and speaking for CADTM international, Eric Toussaint has just published Le Systeme dette, histoire des dettes souveraines et de leur répudiation (Les Liens qui libèrent, 338 p., 19,50 €). (‘The Debt System: a History of Sovereign Debts and their Repudiation’.) He explains how countries that are over-dependent on raw materials fall into the debt trap.
Venezuela has partly defaulted. How did it come to this?
Venezuela is an emblematic case of the infernal cycle that Latin America has been struggling with over the last two centuries. It all began in 1810, when Simon Bolivar, a figurehead of the Spanish colonies in their fight for freedom, began borrowing from London in very unfavourable conditions to finance the wars of independence.