Mainstream economists tell us that developing countries will replicate the economic achievements of the rich countries if they implement the correct “free-market” policies. But scholars and activists Toussaint and Millet demonstrate that this is patently false. Drawing on a wealth of detailed evidence, they explain how developed economies have systematically and deliberately exploited the less-developed economies by forcing them into unequal trade and political relationships. Integral to this arrangement are the international economic institutions ostensibly created to safeguard the stability of the global economy the International Monetary Fund (IMF) and the World Bankand the imposition of massive foreign debt on poor countries. The authors explain in simple language, and ample use of graphics, the multiple contours of this exploitative system, its history, its history, and now it continues to function in the present day. Ultimately, Toussaint and Millet advocate cancellation of all foreign dabt for developing countries and provide arguments from a number of perspectiveslegal, economic, moral. Presented in an accessible and easily-referenced question and answer format, Debt, the IMF, and the World Bank is an essential tool for the global justice movement. About The Author Eric Toussaint a doctor in political science, is president of the committee for the Abolition of Third World Debt, CADTM Belgium. He is author of A Diagnosis of Emerging Global Crisis and Alternatives, and The World Bank: A Critical Primer, among other books. Damien Millet teaches mathematics and is spokesperson for CADTM France. He is the author of L’Afrique sans dette, and co-author with Eric Toussaint of Tsunami Aid or Debt Cancellation. Table of Contents Foreword by angela Y. Davis Abbreviations Introduction  1. HUMAN RIGHTS, DEVELOPMENT, AND DEBT 1. What is meant by “developing countries”? 2. Why is the term “development” ambiguous? 3. What is the link between debt and poverty? 4. What are the “Millennium Development Goals” (MDG)? 5. What are the different kinds of debt for developing countries? 2. THE ORIGIN OF THE DEBT IN DEVELOPMENT COUNTRIES 6. What part did private banks play in the development of developing countries’external debt in the 1960s & 1970s? 7. What part did the World Bank play in the development of the developing Countries’external debts in the 1960s and 1970s? 8. How does the World Bank function? 9. What part did the governments of countries of the North play in the evolution of the developing countries’ external debt in the 1960s and 1970s? 10. How was the borrowed money used in the developing countries? 3. THE DEBT CRISIS 11. How did the price of commodities evolve during the last quarter of the twentieth century? 12. What role did the evolution of interest rates play in the 1982 debt crisis? 13. Are the World Bank, the IMF, and private banks somehow responsible for the debt crisis? 14. How did creditors respond to the debt crisis? 15. Are there any similarities with the 2007 subprime crisis? 4.  THE IMF, THE WORLD BANK,AND THE LOGIC OF STRUCTURAL ADJUSTMENT 16. How does the IMF function? 17. What are the short-term or shock measures imposed by structural adjustment, and what are their consequences? 18. What are the long-term of structural measures imposed by structural adjustment, and what are their consequences? 19. What is the impact of the IMF/World Bank logic on the world food crisis of 2007? 5.  OTHER INTERNATIONAL PLAYERS : THE PARIS CLUB AND THE WTO 20. How is the Paris Club? 21. Are all the developing countries treated in the same way by the Paris Club? 22. What is undermining the Paris Club? 23. What is the role of the World Trade Organization (WTO)? 6.  THE STRUCTURE OF DEVELOPING COUNTRIES’ DEBT 24. Of what does the external debt ofdevelopment countries  consist? 25. How has the debt changed since 1970? 26. Do Developing countries repay debts? 27. What about the external public debt of developing countries? 28. How are the debt-related financial flows directed? 29. What about the domestic debt of developing countries? 7.  DECIPHERING THE OFFICIAL DISCOURSE ON DEBT RELIEF 30. How did the debt relief initiative come about? 31. What is the Heavily Indebted Poor Countries (HIPC) initiative? 32. Has the HIPC initiative achieved its goal? 33. What was contained in the latest debt relief Announced by the G8 in 2005? 8.  THE SHAM OF THE DOMINANT MODEL 34. Does Official Development Assistance (ODA) Help to mitigate the effects of the debt? 35. Is micro-credit a solution to the excessive debt of developing countires? 36. Have the Policies promoted by the World Bank and The IMF contributed of the fight against climate change? 37. What is NEPAD? 9.  DEBT CANCELLATIONS AND SUSPENSIONS OF PAYMENT IN THE PAST 38. Is it impossible to cancel debt? 39. Why do the governments of the South continue to repay the debt? 40. What are vulture funds? 10. THE CASE FOR CANCELING THE DEBT OF DEVELOPING COUNTRIES 41. What are the moral arguments in favor of canceling the debt of developing countries? 42. What are the political arguments in favor of canceling the debt of developing countries? 43. What are the economic arguments if favor of canceling the debt of developing countries?            44. What are the legal arguments in favor of canceling the debt of developing countries? 45. What are the environmental arguments in favor ofcanceling the debt of developing countries? 46. What are the religious arguments in favor of canceling the debt of developing countries? 47. Who owes what to whom? 48. Who has the right to impose conditions on debt cancellations? 49. Can the development of emerging countries Be ensured simply by repudiating their debt? 11. ISSUES RAISED BY CANCELING THE DEBT OF THE DEVELOPING COUNTRIES 50. Would canceling the debt of developing countries cause a global financial crisis? 51. If developing countries’ debts were canceled,would the citizens of the North end up paying the bill? 52. Will canceling the debt help reinforceexisting dictatorial regimes? 53. Should borrowing be avoided at all cost? 12. CONSTRUCTING RADICAL ALTERNATIVES 54. What are the alternatives for human development in the developing countries? 55. If and when the debt is canceled, how can a new round of indebtedness be avoided? 56. What is debt auditing? 57. Are China, sovereign funds, or the Bank of the South valid alternatives? 58. Can the developing countries’ external public debt be compared to the public debt of the North? 12. INTERNATIONAL CAMPAIGN FOR DEBT CANCELLATION 59. How did the international campaign for debt cancellation start? 60. What is CADTM and how was it born? Appendix 1: The 145 Developing Countries in 200 Appendix 2: Glossary Notes