Re: Congo debt

Richard G. Dudley (mailto:rdudley@indo.net.id)
Sat, 7 Jun 1997 09:26:56 +0700 

Message-ID:  <3398C6F0.619@indo.net.id>
Date:         Sat, 7 Jun 1997 09:26:56 +0700
From: "Richard G. Dudley" <mailto:rdudley@indo.net.id>
Subject:      Re: Congo debt
To: mailto:DEVEL-L@AMERICAN.EDU


> Let us look at the creditors.  These include financial institutions and

> interests from various sectors, national and international, who happily

> played along with te Mobutu regime, at least in the later years in full

> knowledge that the country was being plundered, and that the loans and

> credits being made available "for the government of Zaire" were in fact

> being stolen.

>

> It is also well-documented that many of these payments were made, not

> because of a belief that they would be used to develop Zaire but because

> it suited the global interests of the creditors to maintain Mobutu in

> power.  They were motivated by self-interest.

>



I think the Transparancy International approach of holding such
creditors responsible for the debts is a good one, but I wonder how
"well-documented" such cooperation usually is.  Surely those who stole
the money are the "most" responsible.


There is a lot of this type of theft going on and much of it is "on the
surface" just clever business deals.  Indonesia has many great examples
of this.


Exactly where is the line drawn between a theft and a business deal?


Say, for example, loans to set up a 'national' auto import/manufacturing
plant where the presidents son is the loan recipient, and receives an
exemption from the 60% import duty that other importers have to pay.
Surely banks would think this was a great investment since the
competition doesn't have a chance.  And then the son can influence his
papa to say that all government agencies have to buy his "national car"
(which is actually made in another country).


Should banks be responsible for the losses if this scheme fails?  What
if they were forced into the loan arrangement by papa president?


By the way transparency international has a web page at:
http://www.transparency.de/





--
Richard G. Dudley


mailto:rdudley@indo.net.id
http://home.indo.net.id/~rdudley