On Feb 27, we will take to the streets in π©πͺ and in front of German embassies worldwide!
This day marks the 70th anniversary of the debt cancellation π©πͺ received after #WW2 in the #LondonAgreement.
Here is a little history lesson that you may not have heard in school:
π§΅π[1/18]
This day marks the 70th anniversary of the debt cancellation π©πͺ received after #WW2 in the #LondonAgreement.
Here is a little history lesson that you may not have heard in school:
π§΅π[1/18]
Post-war π©πͺ was a heavily indebted country:
there was pre-war debt, consisting of outstanding reparation payments from WW1 & private debts of German banks & companies (standstill debt), the amount of the debt made by the Nazi Government (Konversionskasse) and post-war debtπ[2/18
there was pre-war debt, consisting of outstanding reparation payments from WW1 & private debts of German banks & companies (standstill debt), the amount of the debt made by the Nazi Government (Konversionskasse) and post-war debtπ[2/18
Bear in mind that the #DeNazification of π©πͺ was never properly done: major powerful figures from the Third Reich remained in influential political & economic positions after the war, and were able to build their businesses also due to the outcome of the #LondonAgreement.π[3/18]
Also, the sums discussed in London did not consider debt linked to #reparation for those countries Germany had wrecked havoc on during the war:
π[4/18]
π[4/18]
In the preparation of the framework for the negotiations of the #LondonAgreement, it was decided to postpone the question of these debts to a later peace agreement that, ultimately, never happened.
Thus, a major part of the #NaziDebt is unsettled until today.
π[5/18]
Thus, a major part of the #NaziDebt is unsettled until today.
π[5/18]
So for the German case, a lot of good will was shown concerning the amount of debt canceled and the conditions for repaying the remaining debts.
The premise of all discussions was that π©πͺ would not be asked to pay more than it could afford.
π[6/18]
The premise of all discussions was that π©πͺ would not be asked to pay more than it could afford.
π[6/18]
On Feb 27 1953, 50% of the π©πͺ debt accumulated from before, during, and after WW2, 15 billion Deutsche Marks, was cancelled.
This enabled the economy of the country to stabilise and flourish, leading to Germany's so-called "economic miracle".
π[7/18]
This enabled the economy of the country to stabilise and flourish, leading to Germany's so-called "economic miracle".
π[7/18]
In comparison, the treatment of debt of neo-colonies that emerged out of the colonial system around the same time was very different: debt of former colonies was a tool of keeping them from autonomously growing and instead maintain unequal exchange between North & South. π[8/18]
βοΈto today:
π©πͺ is not only the world's 4th largest historical polluter and the 4th largest voting power in the #IMF.
It also owes much of its current economic power to #DebtCancellation and the extremely favourable conditions to pay back the remaining debt.
π[9/18]
π©πͺ is not only the world's 4th largest historical polluter and the 4th largest voting power in the #IMF.
It also owes much of its current economic power to #DebtCancellation and the extremely favourable conditions to pay back the remaining debt.
π[9/18]
No country of the Global South is afforded similarly favourable conditions today, such as the possibility to pay back their debts in their own currency.
π[10/18]
π[10/18]
Some of the countries that allowed Germany to experience its "economic miracle" through this debt relief (e.g. Argentina, Zimbabwe, DR Congo, Pakistan) are today heavily indebted. Yet today, Germany is blocking any attempts of debt cancellation for these countries.
π[11/18]
π[11/18]
At the same time, billions of people are suffering in countries across the Global South impoverished by debt.
They are unable to take action on the climate crisis, which is actually exacerbated by the debt crisis...
π[12/18]
They are unable to take action on the climate crisis, which is actually exacerbated by the debt crisis...
π[12/18]
... because countries are being forced to extract fossil fuels to pay back interests on loans they have payed back many times over already #ClimateDebtJustice
Many of the debts in the Global South are illegitimate:
π[13/18]
Many of the debts in the Global South are illegitimate:
π[13/18]
They were imposed by the Global North at the expense of the Global South to benefit dictators and former colonizers.
These debts till this day serve the purpose of hoarding wealth and power in the Global North: they are a form of modern day #colonialism.
π[14/18]
These debts till this day serve the purpose of hoarding wealth and power in the Global North: they are a form of modern day #colonialism.
π[14/18]
This contrast shows that the global economic system is still largely governed by oppressive systems of power, including #WhiteSupremacy, #Imperialism and #Eurocentrism.
It is time for debt and climate justice!
π[15/18]
It is time for debt and climate justice!
π[15/18]
π©πͺ not only has the power but also the responsibility to cancel this illegitimate financial debt of countries most affected by the climate crisis, in order to break the vicious cycle of debt and #Extractivism.
π[16/18]
π[16/18]
If #DebtCancellation was possible for Germany back then, it is most certainly possible for the Global South now to enable a self-determined and #JustTransition.
π[17/18]
π[17/18]
Listen to @LouiseWagner_ sum up our #DebtForClimate journey with @c_lindner , the most influential German on the topic, so far...
π£οΈAnd join us on 27th February to remind him of Germany's historic duty on debt cancellation!
[18/18]
π£οΈAnd join us on 27th February to remind him of Germany's historic duty on debt cancellation!
[18/18]
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