Healthy Money Healthy Planet - library.uniteddiversity.coop

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policies of these nations in return for debt renegotiation. Debt­laden countries
such as Mexico and Zambia had to reduce the role and scope of their
governments dramatically, slashing funding for public education, pensions and
health care; they had to deregulate transportation, telecommunications and
utilities sectors; they had to lower minimum wage and working standards; they
had to replace traditional agricultural systems with corporate agribusiness to
grow cash crops for export; and they had to sell off state assets. Most
importantly, barriers to foreign investment had to be removed, and
transnational corporations and investment agencies were given preferential
treatment over local businesses. In spite of all the sacrifices made by developing
countries, their overall debt according to UN statistics grew from US$567 billion
in 1980 to US$1.4 trillion in 1992. 15
The UN Fights Back
Since its inception in 1945, the UN has been locked in a battle with the global
corporations and with its own agencies for the right to control the investment
regime of nations, but it seems the corporations are winning.
In 1947, the US government scuttled moves to establish an international
trade regime that would have obliged member countries to incorporate the
provisions of the UN Declaration of Human Rights, setting standards for full
employment, working conditions and social security. It chose instead to
engineer GATT in its favour by negotiating the reduction in trade tariff barriers
so that world markets would be opened up for US goods.