John Perkins, author of Confessions of an Economic Hit Man , and former executive of Chas. T. Main Inc., made the following comments. He wasn't speaking about Ireland at the time, but see if you can spot any titbits that are relevant to current affairs:
John Perkins said:But perhaps the most common is that we will identify a country that has resources our corporations covet, like oil. And then, arrange a huge loan to that country from the World Bank or one of its sister organisations.
But the money never actually goes to that country, instead it goes to our big corporations to build infrastructure projects like hydroelectric power plants, industrial parks, ports. Things that benefit a few rich people in that country, in addition to our corporations, but really don't have the majority of people involved. However, those people, the whole country is left holding huge debt, and such a big debt that they can't repay it and that's part of the plan, that they can't repay it.
And so at some point we economic hit men go back to them and say "listen, you owe us a lot of money, you can't pay your debt so sell your oil real cheap to our oil companies. Allow us to build a military base in your country or send troops in support of ours to some place in the world like Iraq, or go with us on the next UN road."
To have their electric utility companies privatised, their water and sewage system privatised and sold to US corporations or other multinational corporations. So there's that whole mushrooming thing and it's so typical of the way the IMF and the World Bank work. Is you put a country in debt, and such a big debt it can't repay it. And then you offer to refinance that debt, and pay even more interest. And you demand this quid pro quo, which you call a conditionality, or "good governance" which means basically that they've got to sell off: their resources, including many of their social services; their utility companies; their school system; sometimes their penal systems; their insurance systems, to foreign corporations.
So, it's a double, triple quadruple whammy.