[stop-imf] Reason No. 7 to Come to DC for A16: Structural Adjustment Hurts Workers

[Robert Weissman]

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This is one in a series of one pagers on "Reasons to Come to DC for April
16." A version formatted in MS Word is attached. Please spread these
widely, and feel free to lift from them for your own use.

For more on the demonstrations, go to www.a16.org.

Robert Weissman
Essential Information=09=09=09|   Internet:=09rob@essential.org

Essential Action
P.O. Box 19405 Washington, D.C.  20036
TELEPHONE: 202-387-8030  o  FAX: 202-234-5176  o  E-MAIL: ACTION@ESSENTIAL.=
ORG


Reason No. 7 to Come to DC for April 16:
Structural Adjustment Hurts Workers

The structural adjustment policy package -- including privatization, slashi=
ng
of government spending, trade liberalization and opening to exploitative
foreign investment -- is, at its core, anti-worker.=20

For poor countries, the IMF and World Bank=92s emphasis on exports is to a
considerable extent an entreaty to exploit cheap labor as a "competitive
advantage." But with countries around the world all forced to follow the sa=
me
strategy, relying on cheap labor becomes a race to the bottom -- with
countries forced into a de facto race to the bottom to offer foreign invest=
ors
the lowest wages and least substantial labor protections.=20

Other elements of the structural adjustment package reflect especially the
IMF=92s contempt for workers.=20

As outgoing World Bank economist Joseph Stiglitz says, the IMF views labor =
as
just another commodity. One of the IMF's emphases has been on promoting "la=
bor
flexibility" =97 meaning making it easier for workers to be fired. The Fund=
 has
supported regulatory changes throughout the developing world to remove
restrictions on government and private employers firing or laying off worke=
rs.=20

The IMF has actively promoted government downsizing, even though in many
countries the government is the major employer and there are few prospects =
for
alternative employment.=20

The IMF has also viewed many worker benefits as too costly (if they are
provided by the government) or too inefficient (if required of private
employers). It has urged major scaling back of government pension programs
throughout the world. And it has even called for the roll back of minimum
wages in countries like Haiti.=20

Respect for workers' right to organize is not included in the IMF=92s struc=
tural
adjustment policy.

FOR INFORMATION ON THE APRIL 16 PROTESTS IN DC, GO TO WWW.A16.ORG

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