life · american friends service committee life over debt workshop . learning objectives for the...

LIFEOVER DEBTW O R K S H O P

www.afsc.org/africa-debt

PRODUCED BY THE AFSC LIFE OVER DEBT TEAM • JANUARY 2006

Friends,

During the dark days of apartheid we were prayed for. People were prepared to go to prison on our behalf. People were ready to boycott South African goods on our behalf. And when we overcame apartheid, that victory was not just our victory, it was a victory that belonged also to the whole world.

Unjust debt has created a new Apartheid: one that is not just political but is economic and cultural. Shall we let Africa’s children die of curable or preventable disease; pre-vent them from going to school; destroy their opportunities for meaningful work - to pay off odious loans made to their forefathers?

No! If we are going to be compassionate, we must be prepared for action! Today, we are called to pray, boycott, and protest the scourge of debt, which has replaced apart-heid as a crime against humanity. We must muster the spiritual strength and vigor of the American civil rights movement and South Africa’s anti-apartheid movement to re-move this crushing burden from the poor.

Join the American Friends Service Committee’s Life Over Debt Campaign with people all over the world who call for 100% debt cancellation for ALL African nations, without harmful conditions. Help ensure that Africans are able to use their own resources for their own development.

God bless you,

Archbishop Desmond Tutu

Acknowledgments

The American Friends Service Committee’s Life Over Debt Team would like to extend our sincere thanks to the following:

AFSC’s Praxis Project for creating a popular education paradigm that is unique to AFSC and that holds true to the wider community of justice organizers and trainers.

To the Maryknoll Office for Global Concerns for connecting the dots for global economic justice and producing great films on the international financial institutions—an issue of great concern for global struggles to end poverty.

To United for a Fair Economy (UFE) for being pioneers in the training field, training many of our trainers and providing free, accessible trainings on issues of economic justice. The work of UFE has greatly influenced this workshop.

To the individual organizers all over the world who have developed, changed, refurbished and given freely to the wider organizing community some of the wonderful games, approaches and frameworks for conversation used in this workshop. We are forever indebted to your dedication to popular education and freely shared intellectual property.

And to those of you using this document in your work, thank you for working with us to create economic justice.

Table of Contents

Acknowledgments

I. Introduction 1. Why a Life Over Debt Workshop 12. Our Popular Education Approach to Training 23. Learning Objectives for the Workshop 34. Workshop at a Glance 4

II. Conducting the Workshop 1. Tips for the Facilitator 52. Opening Activities 63. Understanding Global Wealth Distribution Activity: Where in the World is the Wealth? 8 Activity: Life and Debt: The Dynamics of Debt 11 Activity: Chairs of Inequality 16 Activity: Personal vs. Global Debt 184. Understanding Global Apartheid Discussion: Understanding Global Apartheid 21 Discussion: The History of Imperialism and Debt 235. History of International Debt 29 Film: The “Bretton Woods” Portion of Maryknoll’s “Banking on Life and Debt” 296. Impacts of the IFIs 35 Film: The “Ghana Crisis” Portion of Maryknoll’s “Banking on Life and Debt” 30 Activity: The Game of Life: Global Apartheid Edition 317. The Costs of Debt Activity: African Case Studies of Debt 33 Table 1: IMF & World Bank Conditionalities and their Impacts on African Nations 368. Action Steps for Canceling Africa’s Debt Update: Current Debt Issues 37 Update: International Debt Movement and What We Can Do 389. Evaluation 40

AMERICAN FRIENDS SERVICE COMMITTEE � LIFE OVER DEBT WORKSHOP �

I. Introduction

�. Why a Life Over Debt Workshop

In 2004 the American Friends Service Committee (AFSC) launched its’ Life Over Debt campaign, highlighting the need for immediate cancellation of Africa’s external debt. In partnership with the Jubilee USA Network, we added our voice to the millions around the globe who call: “Drop the debt! Free Africa’s internal resources to address the continent’s crucial needs.”

Six thousand Africans die daily as a result of HIV/AIDS. Another 40 million face chronic food shortages, while millions have perished as a result of conflict. Yet, despite Africa’s multiple crises, the continent transfers almost $15 billion a year to rich nations as payment on external debt.

Since the launch of our campaign, AFSC has worked to broaden and deepen the U.S.-based movement for unconditional cancellation of Africa’s external debt. We seek, through our work, to build a powerful and conscious constituency to address Africa’s debt crisis and the financial institutions that sustain it.

This workshop is inspired by our desire to broaden our educational outreach work. It is created for all the people we have met over the years in trainings, on Africa Peace Tours1, and in our community organizing, who asked us to create more tools to help them spread the message about Africa’s debt crisis.

Designed to work in tandem with our Life Over Debt Toolkit, this workshop can be used with diverse audiences, regardless of their grasp of international finance, the African continent, or popular education.

Thank you in advance for your role in spreading the word. Your actions make a difference in the struggle to help Africans as they work to free themselves from the burden of debt.

1 The Africa Peace with Justice Educational Tour is an annual speaking tour that travels to various regions of the country. Tour speakers share information about Africa and U.S. foreign policy and help U.S. citizens understand how they can advocate for policies that promote participatory democracy and economic justice in Africa.

LIFE OVER DEBT WORKSHOP � AMERICAN FRIENDS SERVICE COMMITTEE�

�. Our Popular Education Approach to Training

Popular education is a term applied to principles that have their roots in the theories of Paulo Freire*. Using popular education we seek to create an educational experience that helps people analyze their reality with the aim of working toward transformation.

This approach is a departure from education where the teacher is seen as an expert that “deposits” information into the “empty head” of the student. Popular education works to remove the pressure from the trainer to be an all-knowing “expert”. It emphasizes the responsibility of facilitating active learning.

We strive to make our approach to training consistent with these principles, understanding that:

• Education is not neutral• Education should draw on the experience of learners• Education should include dynamic dialogue that creates a space for both action and

reflection • Education must be a mutual learning process; to discover valid solutions everyone

needs to be both a learner and a teacher• Education should include a transformative dialogue and problem solving

To accomplish these goals we employ the following methodologies: • Dialogue and discussion • Popular education exercises • Case studies• Evaluation

*For more on Popular Education and the work of Paulo Freire: Freire, P. (1972) Pedagogy of the Oppressed, Harmondsworth: Penguin.

Freire, P. (1995) Pedagogy of Hope. Reliving Pedagogy of the Oppressed, New York: Continuum. Taylor, P. (1993) The Texts of Paulo Freire, Buckingham: Open University Press. Torres, C. A. (1993) ‘From the “Pedagogy of the Oppressed” to “A Luta Continua”: the political pedagogy of Paulo Freire’ in P. McLaren and P. Leonard (eds.) Freire: A critical encounter, London: Routledge.


�. Learning Objectives for the Workshop

This workshop is designed to educate about and build a case for 100% debt cancellation of the African continent’s illegitimate and odious debt.

Key Ideas

Global Apartheid - Workshop participants will examine the unequal distribution of wealth income between the Global North and Global South and how international financial institutions (IFIs) work to serve the interests of wealthy countries.

Conditionalities - Workshop participants will be exposed to the way in which the lending institutions and wealthy countries impose stringent conditions on debtor nations that are supposedly designed to stabilize economies, but in reality, ensure countries do everything possible to pay back their debts and maintain a dependant relationship with lender nations and institutions.

An Alternative Vision - There is a growing international movement to democratize the global economy. People calling for unconditional debt cancellation are a major component of this movement. The movement has provided both long and short-term strategies that can be taken to help establish sustainable economies and fair and equitable relationships between the North and South.

Learning Objectives

• Define the role of the international financial institutions and how they shape the global economy

• Understand the link between economic insecurity facing people in the U.S. and growing insecurity around the world

• Understand how debt was created, how it is sustained, and who benefits from this burden

• Understand some of the root causes of poverty and conflict on the African continent

• Learn how to view events in our local communities and nation in the context of the changing global economy

• Develop concrete actions and responses

Remember to communicate the learning objectives for the session

with your audience!


�. Workshop at a Glance

I. Opening Activities (15 minutes)1. Introduction: Workshop goals and agenda2. Icebreaker – select one

• Debt Jargon• Brainstorm: What is Globalization?• Name that Country• Name the G-8 Countries

II. Understanding Global Wealth Distribution (20-30 minutes)Depending on time, select one or two 1. Activity: Where in the World is the Wealth?2. Activity: Life and Debt: The Dynamics of Debt3. Activity: Chairs of Inequality4. Activity: Personal vs. Global Debt

III. Understanding Global Apartheid (20-30 minutes)1. Discussion: Key Terms for Understanding Global Apartheid2. Discussion: The History of Imperialism and Debt

IV. History of International Debt (15 minutes)1. Film: The “Bretton Woods” Portion of the Maryknoll Film Banking on Life and Debt�

V. Impact of the IFIs (15-25 minutes)1. Film: The “Ghana Crisis” Portion of the Maryknoll Film Banking on Life and Debt*2. Activity: The Game of Life: Global Apartheid Edition

VI. The Cost of Debt (25 minutes)1. Activity: Looking at Case Studies in Small Groups

VII. Action Steps for Canceling Africa’s Debt (20-30 minutes)1. Update: Current Debt Issues3

2. Update: International, National, and Local Actions to Plug Into3. Discussion: What Can I do?

VIII. Evaluation (5-10 minutes)

2 The film is preferred, but not necessary for the workshop3 For updates on the activities and information presented in this workshop check www.afsc.org/lifeoverdebt


II. Conducting the Workshop

1. Tips for the Facilitator

Collect needed supplies

Before the workshop review the supplies needed listed in each section and gather the materials.

Learn about the participants

Workshop facilitators should learn as much about their workshop participants and their expectations as possible. A good facilitator will prepare by talking to a representative from the group before the training to get an understating of the audience so that you can adapt the workshop to work for them with ideas for appropriate follow-up activities.

When you talk to the group representative try and get answers to the following questions:• How many people are expected to participate?• Why will the people be a part of this workshop? • What are the expectations of participants? • What do they already know about globalization, international debt and the African

continent?• Are there some people in the group with more understanding of these issues than

others?

Plan your suggested follow-up activities before the workshop—consider the following: • Look at AFSC’s website www.afsc.org/lifeoverdebt or the What I Can Do? sheet

from the Life Over Debt Toolkit• Look at Jubilee USA’s website at www.jubileeusa.org• Research what local groups are doing


�. Opening Activities

I. Introduction: workshop goals and agenda

Trainer’s goalTo briefly frame the learning objectives of the workshop, how you would like to spend the time together, and set a tone for a learning environment. • Introduce yourself and the workshop. You may want to talk about popular

education, why you care about debt cancellation, or how you came to be the trainer for this workshop.

• Briefly summarize the learning objectives and the key points that they will learn in the workshop.

• Review the agenda • Have the participants briefly introduce themselves (unless you select icebreaker

option A, which serves as a good way to do introductions).

II. Icebreaker options

Select one of the five following icebreaker activity options.

A. Debt JargonPre-workshop preparation: you will need to have enough index cards or small pieces of paper for each participant. Write one of the Debt and Global Economy Terms, page 46-48 of this packet, on each card.• Break the group into smaller groups of 4 to 6 or if the group is large or if the

group is smaller you can do this as a large group activity.• Give each person an index card with a debt jargon term on it• Have them think about the word and define it in their head • Have them go round their small group, introduce themselves and give their own

definition of the word, and then discuss the meaning among the members of the small group

• After five minutes have each group share their names and what they came up with in relation to their jargon terms

• As the trainer, assign yourself the term Global Apartheid, go last, re-introduce yourself and define the term (See Statements and Definitions of Global Apartheid in the “Additional Materials” section on page 44).


B. Brainstorm: What is Globalization? • On a large sheet of paper have people list randomly what they think of when

they hear the word globalization• Feel free to add one of your own• Pick the terms that occur the most or the terms most relevant to the African

continent and debt and briefly discuss them with the group

D. Name that Country• In five minutes have the group name as many countries on the continent of

Africa as they can• Once the time is up refer to the map to show all 54 countries

o Talk briefly about the perceptions that are commonly held of the African continent (e.g., it is one country instead of a continent with 54 countries)

o Or ask them if there are any countries that the group had never heard of before

o Or pick a country and ask them what they know about things that are going on politically, socially or economically that country today

E. Name the G-8 countries • Ask the group to name the countries in the Group of 8 (G8)

o Canada, France, Germany, Italy, Japan, United States, United Kingdom, and Russia

• Fill in any countries missing and ask them:o What does this group of countries reflect?o What level of influence does the G8 have?o What kinds of decisions does the G8 make?

E. What do we know, what do we want to know• Ask the group to share what they know about Africa and what they want to

learn about the Continent. Take as many as you like being mindful of time. You may want to record these answers and share review them at the workshops end.


�. Understanding Global Wealth Distribution

Depending on time availability, select one or two of the four activities below.

Activity: Where in the World is the Wealth?

1. Overview

Total time: 20 minutes

Trainer’s goalTo prepare participants to understand the more complex issues that will be presented in the rest of the workshop. Key conceptsParticipants will gain an understanding of the global distribution of wealth and populations. Supplies needed• Large world map affixed to wall. A good source for a 70” x 49”, laminated world

map is www.usmapandbook.com • Two colors of post-it notes or small pieces of colored paper and tape to affix to

the map. We suggest:o green for populationo yellow for wealth

2. Statistics and clarification pointStatistics provided in the charts below are from the World Bank’s DEP web and the US Census Bureau Global Population Profile 2004.


If you have 25 participants use these statisticsContinent Pop % = # of green cards % of world’s wealth = # of red cards

Africa 13.1% = 3.2 1.8 = 0.5Asia 60.6 = 15 25.5 = 6*Oceania 0.5 = 1.2 1.6 = 2Europe 12 = 3 34.2= 9N. America 5.2 = 1.3 31.8= 8S. America 8.6 = 2.1 5.1 = 1

If you have 20 participants use these statistics

Continent Pop % = # of green cards % of world’s wealth = # of red cards

Africa 13.1% = 2.6 1.8% = .36Asia 60.6% = 12 25.5% = 5.04*Oceania 0.5% = 1 1.6% = 2.32Europe 12% = 2.4 34.2% = 6.8N. America 5.2% = 1.4 31.8% = 6.3S. America 8.6% = 1.72 5.1% = 1.02


Africa 13.1% = 1.9 1.8% = .27Asia 60.6% = 9 25.5% = 3.82*Oceania 0.5 = .7 1.6% = 2.24Europe 12% = 1.8 34.2% = 5.1N. America 5.2% = .78 31.8% = 4.77S. America 8.6% = 1.29 5.1% = .765


Africa 13.1% = 1.3 1.8% = .18Asia 60.6% = 6.06 5.1% = .51*Oceania 0.5% = 0.5 2.4% = 2.04Europe 12% = 1.2 34.2% = 3.42N. America 5.2% = .52 31.8% = 3.18S. America 8.6% = .86 5.1% = .51

*Oceania, for the purpose of this exercise, consists of Australia, Pau Pau New Guinea, Guam and New Zealand

LIFE OVER DEBT WORKSHOP �0 AMERICAN FRIENDS SERVICE COMMITTEE�0

3. Exercise A. Divide the group into six smaller groups and assign each group one of the

following regions of the world: Africa, Asia, Oceania, Europe, N. America, S. America.

B. Give each group, based on the population distribution statistics from charts above, one green card for every 240 million people. Explain to the group that these cards represent “their” populations. (For example, Oceania would receive ½ of a card to indicate its’ population if you were working with a group of 10 people.)

C. Give each group the number of “wealth” cards that correspond with the total number of participants (see chart above) regardless of the group size. (For example, Oceania would receive 1.2 cards if you were working with a group of 25 people.)

D. After you have handed out all the cards ask each group to affix first their population cards to “their” land on the large map.

E. Then after each group has placed their population cards ask them to affix their wealth cards to the map. (For example, Oceania will stick their cards on Oceania so that the map reflects the population and wealth distribution of that region.)

F. Then ask everyone what they notice about population in relation to wealth on the chart.

4. Discussion Questions:• Does population coincide with wealth? Why or why not?• What might it mean to have larger populations in regions with very little

comparative wealth?• What is wealth? • Are the countries with lots of resources (oil, diamonds, coltan4, etc.) the

wealthiest? • What do you think accounts for the wealth of certain parts of the world?

4 Coltan, short for Columbite-tantalite is a metallic ore found in the eastern regions of the Democratic Republic of the Congo. When refined, coltan becomes a heat resistant powder, metallic tantalum which has unique properties for storing for storing electric charge and is a vital component in the capacitors that control current flow in cell phone circuit boards.

AMERICAN FRIENDS SERVICE COMMITTEE �� LIFE OVER DEBT WORKSHOP ��

Activity: Life and Debt: The Dynamics of Debt

1. Overview


Trainer’s goalParticipants should gain a clear understanding of international debt and how countries can become indebted.

Key conceptsThis game will take participants through five years of production in developing countries, as interest rates rise on loans and the price of exports drop, so they can experience how countries collected such large and unpayable debts. The issues of commodities, interest rates and exports will be covered.

Supplies needed• Coloring pencils or crayons• Bag of individually wrapped candy or box of poker chips• One pair of scissors per group• Print enough of the commodity sheets on page 17 for each group to have one

(commodities include coffee, T-shirts, and footwear)• Print enough of the repayment cards on page 18 for each group to have one

2. ExerciseA. Arrange your participants into groups of 3 or 4Give each group only one commodity sheet to color.

B. Tell the group:• The game you are about to play is a game of winners and losers. Each group

represents a family living in an African country. The object of the game is to get rich quick using your available resources.

• Money (candy or poker chips) is made by growing crops or making clothes and selling them to rich countries. This is done by coloring coffee beans, T-shirts and tennis shoes and cutting them out. The more shapes you produce the more money you make. Shapes must be colored in and cut out perfectly. No damaged goods will be accepted.

• Time is short since you have five years to make your fortune. Every five minutes of the game represents one year. In the first year of production you will be given one poker chip or piece of candy for every two shapes which have been cut out and colored correctly.

LIFE OVER DEBT WORKSHOP �� AMERICAN FRIENDS SERVICE COMMITTEE��

C. Overall rules• Start each year by saying, “on your marks, get set, get rich quick!” • Some may rush to tear shapes with their fingers. Remind them that they will

need scissors to make proper shapes.• Set up the Bank that will arrange loans for scissors and colored pencils with the

following rules: o Each group can purchase a pair of scissors for five pieces of candy or poker

chips and colored pencils for one piece of candy or one poker chip each (Note: Groups cannot share pencils with one another and everyone in a group must have a coloring pencil to work.)

o Loans can be repaid at three candy pieces/ poker chips a year plus interest. o Explain that interest is the money you charge for giving a loan. o Interest in the first year will be one candy piece/ poker chip— if asked, say

that interest levels can go up or down. o Hand out repayment cards and have them signed.

• You will need to stop the activity every “year” (five minutes) and change the rules.

D. Year One: The sweet smell of success Start the first game by saying “On your marks, get set, get rich quick!” and time five minutes. In year one, give participants a taste of success—many poor countries had no problem repaying loans in the early years, the 1970s, when interest rates were quite low. When the five minutes is up:• Add up how much each group has earned from their shapes. (Remember it is one

candy piece/ poker chip for every two shapes.) • If they have earned more than they owe, give them the money they are due. • Each group should record the amount paid on their repayment card.• Then restart the game as soon as possible.

E. Year Two: Overproduction reduces profits Start the second game by saying “On your marks, get set, get rich quick!” and time five minutes. In the early 1980s, poor countries saw the worldwide prices of their exports drop on international markets. Each group owes three pieces/chips plus + one chip/ piece of candy in interest. • Now change the price you give them for their commodities. • Create tension between the groups by giving one or two commodities a

particularly low price (e.g., one piece of candy/chip for 5 shapes). • Give a reason for this (“People in the U.S. are off of this particular coffee bean,”

“They are overstocked with this tennis shoe” “Blue shirts are out of fashion this year”).


• Tell them this actually happened with developing countries. • Some groups might want to change their commodities at this stage. • Let them do so but collect any half-colored sheets that they might have left over.

This signifies the setback faced by poor countries as they plant new crops and wait for them to mature or invest in a completely new commodity.

F. Year Three: Interest rates go through the roofStart game three by saying “On your marks, get set, get rich quick!” and time five minutes. Developing countries saw a huge increase in interest rates in 1980s. • Groups now have to repay three pieces of candy/ poker chips on their loan +

seven pieces/ chips in interest. • Give them a reason for high interest rates such as "I can’t control global interest

rate levels that influence our rates,” “The IMF and World Bank insisted we increase our interest rates”

• Prices for shapes should be reduced further, e.g., one piece of candy/one chip for every 5 to 10 shapes.

G. Year Four: More interest and fewer profits Start game four by saying “On your marks, get set, get rich quick!” and time five minutes. • Interest rates should be increased to $10 (i.e. by ten pieces of candy or chips)• Commodity prices should be unpredictable and go up and down.• Groups will have difficulty in making their last repayment. • If a group can’t make any payment then mark $0 in the amount paid column of

their repayment card.

H. End of the Game• Get each group to calculate the total amount that they have paid and the total

amount they still owe. • Have each group compare these figures with the amount that they borrowed.

I. Discussion Questions: • What happened in the game? • Who were the winners and who were the losers? • Was it their fault that they fell into debt? • What would have happened if the game had continued?


GET RICH QUICK PLAYING PIECE


Repayment Card

Country: ________________________You have borrowed $ to pay for scissors and coloring pencils

Year Payment due Amount paid Amount

Each year each year

1 $3+Interest= _ !

2 $3+Interest= !

3 $3+Interest= !

4 $3+Interest= !

Total Amt Paid $ Total Amt still Owed $

____________ ________________

Repayment Card

Country: ________________________You have borrowed $ to pay for scissors and coloring pencils

Year Payment due Amount paid Amount

Each year each year

1 $3+Interest= _ !

2 $3+Interest= !

3 $3+Interest= !

4 $3+Interest= !

Total Amt Paid $ Total Amt still Owed $

____________ ________________

GET RICH QUICK REPAYMENT CARD


Activity: Chairs of Inequality

Adopted from the exercise, World Distribution of Income developed by Emily Kawano from the Institute for Popular Education

1. OverviewTotal time: 20 minutes

Trainer’s goalsTo allow participants to experience global apartheid visually and physically.

Key ConceptsThis game is specifically based on the inequality that exists in the U.S. If you apply this game to the world, the inequality would be even higher. Actual figures: • In 1976, 10% of the world’s population controlled 20% of global wealth. • In 1998, 10% of the world’s population controlled 40% of global wealth. • In 2004, 10% of the world’s population controlled 54% of global wealth. • Today the top 400 income earners in the U.S. make as much in a year as the entire

population of the 20 poorest countries in Africa; over 300 million people

Supplies needed • Ten chairs• Whiteboard, chalkboard, or flip chart paper

2. Exercise

A. Set up chairsSet up ten chairs and ask for ten volunteers to represent the world’s population and resources.

B. Ask the group, “What is wealth?”• Take answers and record them on the board: (e.g., limousine, money, access

to health care, education, etc.)• Provide the following input:

In an ideal world we’d probably see everyone get an equal share of resources, wealth and access to service goods.

Nonetheless we know that this ideal situation isn't the case.


C. Discuss statistics• Use (overhead, flip chart, etc.) to write up the following: In 1976, 10% of the

world’s population, controls 20% of the wealth. • Designate one person to be the wealthy 10% and have them occupy 3 chairs

— the others will need to make due with the rest.• Tell the group:

o Ok, so we see that not everything’s perfect.o How’s the rich person doing?o Is there inequality?o There are problems but it’s bearable for the moment

D. Discuss new statistics• Use (overhead, flip chart, etc.) to write up the following: In 1998, 10% of the

U.S. population controlled 40% of the wealth• Give the “rich” person five chairs, making sure all five chairs are occupied.

The rest of the people must adapt to the remaining five chairs. • Ask the group:

o So what’s happening to the situation?

E. Discuss new statistics• Use (overhead, flip chart, etc.) to write up the following: In 2004, 10% of the

population controls 54% of the wealth• Give the “rich” person seven chairs to occupy. The rest get only three chairs.• Ask the other participants how they are doing• Begin the discussion with feedback from the participants, and then invite all

of them to begin a discussion.

F. Discussion Questions• What has happened to the distribution of wealth over the last three decades?• Were the majority of people comfortable?• Were they getting along?• What does this mean for real people—less homes, growing debt, and no

pension?• What happens if all of them decided to get up and take the other chairs?


Activity: Personal vs. Global Debt

1. Overview


Trainer’s goal To connect participant’s experiences of personal debt to a global scenario.

Key conceptsThe purpose of this exercise is to connect participants’ experiences and understanding of personal debt with that of international debt.

Supplies neededMake copies of the handouts: “Credit Card Nightmare” and “Personal Debt vs. International Debt” (pages 22-23). You will need one for each participant.

2. Exercise A. Pass out handoutsB. Ask your group to think of a family (perhaps their own) that has acquired major

debt and falls behind on payments. C. Ask someone to explain the difference between personal debt and institutional

debtD. Discuss

• How are they similar?• What are the differences?• What is the impact on the personal level of both kinds of debt?


�. Understanding Global Apartheid

Discussion: Understanding Global Apartheid

1. Overview


Trainer’s noteIf you use “Debt Jargon” as your opening activity you may NOT want to do this section unless you feel the group still does not grasp Global Apartheid, Odious and Illegitimate as concepts.

Trainer’s goalTo have the group truly understand the theoretical grounding of this work and the worldview of debt cancellation.

Key conceptsA deeper understanding of Global Apartheid will allow for a better understanding of the debt burden of the African continent.

Supplies Needed• Overhead, chalkboard, or flip chart paper• Tape• Markers

2. ExerciseLead a discussion about Global Apartheid. Write the term on one piece of flipchart.

• Tell the group: At the heart of our analysis around debt and its detrimental impact on people and countries is the understanding of the system of Global Apartheid

• Ask them: What is Global Apartheid? Record their answers on flipchart paper• Tell them: Global Apartheid shares parallels with the former Apartheid System

in South Africa and is an international system of minority rule whose attributes include: o Differential access to basic human needs and rightso Wealth and power structured by race and geographic location o Western dominance of the global economy and international institutionso Political-cultural subordination of certain countries to the global marketso Free markets, unregulated corporations, the vast build-up of nuclear and

conventional weapons


• Tell them: The “developing” world is still “developing” and will continue to be “undeveloped” because of the structures that exist to perpetuate global financial and social inequality.

• Ask the group the following questions and record their answers on large pieces of paper:o Which advanced degrees are accepted worldwide?o What passports and which nations citizens can apply for a visa in the airport

when they arrive in country X? Which citizens have to apply for a visa months in advance and show their valid visa in order to be able to board the plane?

o Who is depicted as poor and victims by the media?oWhat does this say about the way the world is structured?

If you have the film Banking On Life and Debt you should proceed to the next section (IV) of the workshop here.

If you DO NOT have the film, continue the discussion by telling the group:• The International Monetary Fund (IMF), World Bank, World Trade Organization

(WTO), and multinational corporations help to cement and maintain the relationship between the Global North and Global South o The Global North includes the rich Group of 8 (G-8) countries that’s

comprised of Canada, France, Germany, Italy, Japan, Russia, UK, and United States

o The Global South or so called “third world” includes poor nations in the Southern Hemisphere, such as the countries in Africa, Asia and Latin America

o Racial, social and economic inequalities that allow the Global North to exploit human and natural resources of the Global South are often referred to as neocolonialism.

• Tie this into the debt crisis by explaining that the Global North’s agenda for external debt in the Global South includes:o Financial liberalization that promotes unrestricted movement of capital,

which has led to capital flight, high interest rates, and foreign exchange rate fluctuations;

o Trade liberalization, which has led to a downward pressure on wages, lost food security, and dislocation of workers and farmers; and

o Increased privatization, which has reduced access by average Africans to essential public services, such as water, electricity, healthcare, and primary and secondary education.


Discussion: The History of Imperialism and Debt

1. Overview

Total time: 30 Minutes

Trainer’s noteThis is designed for a younger audience; with an older audience you can assume that these concepts are understood.

You may want to briefly have different participants define the key concepts and have a 10 minute discussion about these terms before moving on to the next section.

Trainer’s goalThis presentation should walk the group through a basic history of imperialism using the visual images below. In the end, participants should be able to understand the historical development of imperialism and its relationship to debt.

Key concepts• Colonialism • Capitalism • Imperialism

Supplies needed• Print one set of the “Introduction to Imperialism Symbols” (pages 30-31) • World Map

1. Exercise

A. Ask the group the following question:Why does the U.S. have so much power in the world whereas countries like Uganda and Rwanda do not?

B. After some discussion offer this answer in language you are comfortable withWe don’t believe that it’s because people in the United States are smarter or better than other people in the world. That’s like saying that there are more people with blond hair in honors classes because people with blond hair are just better people. There’s a long history that got the world to where it is today and we are going to go into that history now.


C. The Brief history of the world (refer to the world map) • As you explain the following, put the CASTLES in Europe.

o Hundreds of years ago, Europe was mainly a farming society where a few kings and queens owned huge pieces of land that the rest of the people worked on as peasant farmers. These peasants had hard lives— facing intense poverty and violence.

• As you explain the following, put the SHIP sailing out of Europe. o The rulers of Europe were always fighting wars against each other to try

to get more land and gain more wealth. Eventually they wanted more land than they could get in Europe, so the kings and queens sent out explorers and armies to conquer more land in Africa, Asia, and Latin America— even though there were already people living on those lands.

• And what happened when these explorers arrived in the rest of the world? o Take some answers. o Offer your own:

- They claimed the land as their own - The people who lived there fought back - Millions of the indigenous people were killed for their lands rich in

resources like gold, silver, and spices- They used the fertile land to set up plantations to grow things like coffee

and sugar- They used the people that lived their labor to farm this land and built

colonies o As the group talks put up:

- BRITISH FLAGS on North America, India, North Africa, and East Asia - SPANISH FLAGS on North, Central & South America and the Caribbean - FRENCH FLAGS on Africa, Vietnam and the Caribbean - DUTCH FLAGS on South Africa and the Caribbean - PORTUGUESE FLAGS on South American and Southern Africa- Also put PLANTATIONS on Latin America, North America and Asia- Use the arrows to show the routes of the slave trade

D. Discuss colonialism• Discuss all of the things you just covered and explain that this is all a part of the

system where one nation completely controls the government of another nation to gain power and profit.


• Define for the audience that colonialism is the extension of a nation's sovereignty over territory and people outside its own boundaries, often to facilitate economic domination over their resources, labor, and usually markets. The term also refers to a set of beliefs used to legitimize or promote this system, especially the belief that the values of the colonizer are superior to those of the colonized

• So what did Europe get out of this set-up? o Take some answers o Offer your own:

- They gained a huge amount of money by getting free land, free labor and access to all that gold and other resources.

- Europe—along with the European people who moved to Africa, Asia and the Americas—got very rich.

- This wealth set the rules for the rest of history as we know it— European nations had the money and the weapons to force other nations to do whatever Europe wanted.

E. Capitalism• Define capitalism as an economic system in which all or most of the means of

production are privately owned and operated and where the investment of capital, and the production, distribution and prices of goods and services are determined mainly in a free market, rather than by the state. In capitalism, the means of production are operated for profit.

• As you define capitalism, put:o FACTORIES in Europe and the United Stateso MONEY signs in Europe and United States

F. Political Liberation• Define political liberation as the act of achieving equality of social-cultural rights

and status.• As you discuss the following take down the EUROPEAN FLAGS and put up

FREEDOM FLAGS o Eventually the people in Africa, Asia and Latin America got sick of this set-

up and they stood up against colonialism so they could control their own governments and their own economies.

G. Economic Inequality• As you discuss the following cover the FREEDOM FLAGS with DEBT signs in

Asia, Africa and Latin America and connect them the CONTROL sign in the United States and Europe.

• Ask: What do you think happened at this point? Did they gain an equal amount of power to the U.S. and Europe?o Take some answers.


o Offer some of our own:- Because the U.S. and Europe had more money they were able to set the

rules for how the global economy would be set up. - Because of all those years of the United States and Europe taking wealth

from Asia, Africa, and the Latin America those countries were extremely poor and lacked internal infrastructure.

- When they needed to borrow money to re-build their society, these countries became indebted to international countries and international banks as they had to accept loans to develop their newly freed countries.

- Interest rates soon began to spiral out of control and these countries soon were controlled by foreign governments and banks


�. History of International Debt

Film: The “Bretton Woods” Portion of the Maryknoll Film Banking on Life and Debt

1. Overview

Total Time: 15 Minutes

Bretton Woods portion of the Maryknoll Film Banking on Life and Debt

Trainer’s goalsTo provide a brief history of IFIs and give the group a theoretical grounding of this work and a worldview on debt.

Key conceptsGlobal ApartheidOdious DebtIllegitimate debtThese are core concepts in the debt cancellation debate without an understanding of these terms to true understanding of the debt burden is not possible.

Supplies needed• A television and VCR or a computer and LCD projector• A copy of the Maryknoll Film Banking on Life and Debt (www.maryknollmall.org)• Before the training you will need to cue the tape to the portion that begins, “the

Bretton Woods Conference” and play this section 2. Exercise

A. Play tapeB. Once this portion of the tape is done, tell the group: • The International Monetary Fund (IMF), World Bank, World Trade Organization

(WTO), and multinational corporations help to cement and maintain the relationship between the Global North and Global South o The Global North includes the rich Group of 8 (G-8) countries in the North

— Canada, France, Germany, Italy, Japan, Russia, UK, and United States o The Global South or so called “third world” includes poor nations in the

Southern Hemisphere, such as the countries in Africa, Asia and Latin America

o Racial, social and economic inequalities that allow the Global North to exploit human and natural resources of the Global South are often referred to as neocolonialism.


�. Impacts of the IFIs

Film: The “Ghana Crisis” Portion of the Maryknoll Film Banking on Life and Debt

1. Overview


Trainer’s goalsTo provide a brief history of the recourse crisis of the 1970s and the role that IFIs played on economies with Ghana as an example

Key conceptsInflationGross Domestic ProductImport and Export Rates

Supplies needed • A television and VCR or a computer and LCD projector• A copy of the Maryknoll Film Banking on Life and Debt (www.maryknollmall.org)• Before the training you will need to cue the tape to the portion that begins,

“Ghana Crisis” and play this section 2. Exercise:

A. Play tapeB. Once this portion of the tape is done, tell the group: • That The Global North’s agenda for external debt in the Global South includes:

o Financial liberalization that promotes unrestricted movement of capital, which has led to capital flight, high interest rates, and foreign exchange rate fluctuations;

o Trade liberalization, which has led to a downward pressure on wages, lost food security, and dislocation of workers and farmers; and

o Increased privatization, which has reduced access by average Africans to essential public services, such as water, electricity, healthcare, and primary and secondary education.

C. Ask them if this system reminds them on anything.

D. After they throw out answers tell them that many people believe these policies to be an extension of the power inequalities that were created and maintained under slavery and colonialism.


Activity: The Game of Life: Global Apartheid EditionModified from an activity created by Center for Concern

1. OverviewTotal Time: 25 Minutes

Trainer’s goalsTo provide an overview of the way in which International Financial Institutions (IFIs) and governments interact with people in the current system of neoliberal capitalism

Key ConceptsGlobal ApartheidInternational Financial Institutions

Supplies neededSmall pieces of green, yellow, and red paper

2. ExerciseA. Divide participants into 3 groups of equal number

B. Name each group (green, yellow, and red)

C. Hand out the cards that are the color of the group to each group; for example the green group will receive green pieces of paper.

D. Groups • the green group represents the IFIs• the yellow group represents the richest nations of the world• the red groups represent the poorest nations of the world

E. Make sure that there are fewer green cards then the rest of the colors (this will make green cards much harder to obtain)

F. Quietly give each group a set of instructions and let them know that they are not allowed to share with the people that are not in their group. • Tell the members of the green and yellow groups that there are less green

cards but DO NOT tell the members of the red group.• Tell the red and yellow groups to use their negotiation skills to acquire as

many green cards as possible. • Instruct the green group to make it as difficult as possible for participants

in the red group to obtain green cards, but should be more lenient with members of the yellow group.


o For example, when yellow group members ask for green cards they should give them green cards without asking any questions. On the other hand, they must ask red card members a number of questions (such as “Why do you want my green card?”, “What can I get in exchange?”) and/or make suggestions to red card members such as “I will give you 1 green card if you give me 3 of your red cards”

G. Give everyone two minutes to interact with each other.

H. Remind them as they “play” to remember their roles and to use their negotiation skills to obtain as many green cards as possible.

I. End the game and identify 1 or 2 people from each color group to talk about their experience as a representative of their color group

J. Explain• the role of the green group was to operate in secrecy; encouraging red group

members to give up their sovereignty in order to obtain more green cards• unequal treatment of red versus yellow card holders. • how much more necessary it is for the reds to obtain the green cards than the

yellows to obtain the green cards

K. Discuss the experience of this game. Ask the group:• How did you feel when you were playing?• How did you feel once you found out that I gave preferential treatment to

certain groups?• How might this mirror the current global economic system?


�. The Costs of Debt

Activity: African Case Studies of Debt

1. Overview


Trainer’s goalsTo provide the group with an understanding of debt’s impact on communities, specifically the impact of conditionalities imposed on debtor nations that create and maintain a system of Global Apartheid.

Key concepts • Illegitimate and odious debt• Governance and debt• IMF and World Bank imposed conditionalities

Supplies needed• Overhead, chalkboard, or flip chart paper• Markers• Download from www.afsc.org/lifeoverdebt or pull from AFSC’s Life Over Debt

toolkit three case studies: South Africa, DRC and Angola. • Print out chart entitled “IMF and World Bank Conditionalities and their Impacts

on African Nations” (page 39)

2. ExerciseA. Write the terms “Odious” and “Illegitimate” on flipchart.• Tell the group:

oAfrica was literally snared into debt by creditors in the wake of rising oil prices and falling interest rates in the 1970s.

oBanks and other lending institutions made loans to developing countries in or-der to “stop the slide” of interest rates and thus save their businesses.

oThe great bulk of Africa’s debt was incurred in the context of Cold War poli-tics.

• Africa was a hot battle ground for the former USSR and the West, principally the United States.

• Both East and West furiously fought for the continent’s political loy-alty and disbursed billions of dollars in loans to any country that sup-ported them, regardless of how brutal their leaders were or how bad their governments.


o Such irresponsible lending resulted in corrupt African leaders and govern-ments grabbing as much money as possible to line their pockets, invest in use-less prestige projects, buy more arms, and fortify their brutal security appara-tuses, which they then used to crush dissent and create conditions for violent conflicts that today ravage the continent.

B. Divide larger group into groups in divisions of three (e.g. 3, 6, 9 etc) and assign each group one case study—it is OK to have multiple groups looking at the same case study.

C. Have each group select a spokesperson, recorder and facilitator.

D. Give each group 12 minutes to read one of the country case studies and answer the following questions:

• How did the debt get created? • What was the impact of the debt on the people?

E. Have the spokesperson from each group give a report back to the larger group going country by country (e.g., all groups who read the Angola case study report together)

F. Ask the group: Do you think it is just to make the poor peoples of these countries pay debts on money that was borrowed and used to oppress them?

G. Tell them: Creditor nations and institutions claim that Africa is responsible for the continent’s debt crisis. However, evidence shows that creditors:oMade loans without regard to the use to which the loans were to be put oHad no loan evaluation processes oMade no demands concerning military spending oMade loans to illegitimate leaders and governments whose downfall was a

foregone conclusion According to international law, people should not be forced to pay debts that did not benefit them and that were contracted and used to suppress, jail, and kill them.

H. Now lead a discussion on conditionalities. Hand out the chart entitled


“Conditionalities” as you explain the following: • One of the overarching themes in the debt problem is the impact of the

conditions imposed by lending institutions on borrowing countries.• The IMF and the World Bank claimed that conditions set for debtor countries

were developed to help them rebuild their economies. These conditions manifested in numerous official programs such as:o The Structural Adjustment Programs (SAPS)o Poverty Reduction Strategy Programs (PRSPs)o Highly Indebted Poor Country Initiative (HIPC) debt relief programs

• In reality, these conditions have had serious detrimental effects on average citizens and developing economies.


Table 1: IMF and World Bank Conditionalities and their Impacts on African Nations

Conditionalities Impact

Mandatory spending cuts in basic social services(instead of raising taxes)

Poor are no longer able to afford medicine, education, or other services they’ve relied on: Disease and illiteracy grows.

Wage freeze (there aren’t descriptive words on the other 5)

Low wages increase profits and attract foreign investors, yet standard of living plummets for workers: Corporations get richer, poor get poorer.

Something here as well about how environmental policies can be bartered by countries to MNCs in exchange for maintaining FDI to lower unemployment?

Privatization of public services Corporate owned services like water and electricity become too expensive for many citizens: Massive public sector layoffs weaken unions and increase unemployment.

Also not profitable to bring services to people in places like rural areas where people cannot afford them, or may not live in the monetary economy, decreasing the chances of water and electricity ever reaching such areas.

Government regulation of import and export restrictions eliminated

Unprotected markets enable big corporations to purge nations of living wage jobs: Poor are further stripped of wealth and opportunity

Promotion of export-oriented production Greater dependence on international markets for survival as locally produced goods vanish:

Demise of subsistence farming in favor of imports and corporate profit.

Devaluation of local currency Exports are cheaper on the international market while imports become more expensive: Money earned is worth less; hence, poverty and famine become widespread


�. Action Steps for Canceling Africa’s Debt

Update: Current Debt Issues

1. OverviewTotal time: 20 Minutes

Trainer’s goalTo provide the group with up-to-date information on the hot button issues within the international debt movement

Key Concepts HIPC (Heavily Indebted and Poor Country Initiative)Repudiation of DebtsParis Club

PreparationVisit www.afsc.org/lifeoverdebt and download:• “Shaping the Debate: Africa’s Debt Crisis and the G8”• The fourteen African countries that will receive G8 debt cancellation• Nigeria and the Paris Club’s Debt Cancellation DealYou may want to make copies of these points to share with the group.

You may also want to visit www.allafrica.com and conduct a search under Debt to get the up-to-the minute news coverage of the Continent’s debt

Supplies needed• Overhead, chalkboard, or flip chart paper• Markers

2. ExerciseA. Hand out “Shaping the Debate: Africa’s Debt Crisis and the G8” from www.afsc.

org/lifeoverdebt or from the LOD toolkit. B. Brief the group on last year’s debt cancellation proposals:

• The fourteen African countries that received G8 debt cancellation• The debt cancellation deal between Nigeria and the Paris Club

C. Discuss these and what they might mean for Africa’s impoverished nations..


Update: International Debt Movement and What We Can Do

1. Overview


Trainer’s goalTo ensure that people are moved to action and not stuck in a place of being overwhelmed by this new information with no way to impact this reality.To synthesize all this information into a argument for Africa’s Debt Cancellation.

Key concepts• Grassroots Organizing• Jubilee Campaign• Global Economic Justice Movement

Supplies needed• AFSC’s Life Over Debt “What Can I Do?” sheet; download from www.afsc.org/

lifeoverdebt • Overhead, chalkboard, or flip chart paper• Tape• Markers

2. ExerciseA. Ask the group :• How are you feeling about what you have just learned today?• From what you have learned today, why do you think Africa’s debt should be

cancelled?• Would you like to become active a movement working to cancel Africa’s debt? • Would you like to brainstorm things you can do to impact Africa’s debt crisis? If

they answer yes, brainstorm and record their ideas on large paper

B. Describe the kinds of things debt campaigners are doing globally. Tell the group that people all over the world are engaging in.

• Education: what you (the trainer) have just done with this workshop• Advocacy: talking to their government • Movement building: working with others and other organizations • Direct Action: engaging in protests, street theatre, etc.


C. Explain to them that getting involved is easy and doesn’t’ have to be time consuming. They only have to do THREE THINGS to get involved:

• EDUCATE THEMSELVES and OTHERS: Visit www.afsc.org/lifeoverdebt and download the activist toolkit, read it and then tell three people about Africa’s debt crisis.

• TALK TO YOUR LAWMAKERS: a phone call only takes 10 minutes. An in-person meeting takes only one hour of work. Visit www.afsc.org/lifeoverdebt and download the activist toolkit which can tell them how to set a meeting and provides examples of what they can do and say.

• JOIN AFSC’s Life Over Debt CAMPAIGN! and network with activists from all over the country and the African continent working on debt cancellation.

D. Share with the participants your role in organizing the participants• If you (the trainer) are already organizing locally, tell them about who you work

with, why you were called to do this work, what campaigns you are working on o Include some of your local activities on the group’s flipchart o Hand out AFSC’s What I Can Do sheet to give them ideas of things that

are already being organized, include some of the activities from this sheet on your flipchart (i.e., join AFSC’s Life Over Debt Campaign and join the thousands of people working on debt cancellation)

o Tell them when your group will next be meeting and invite them to attend. Also give them contact information for someone in that group

o Pass around a sheet for people who want to stay involved so you can reach them later

• If you (the trainer) would like to be organizing locally, tell them so and then begin to organize yourselves.o Ask the group what they want to accomplish in the short-term and record

the answers. Remember that the first step should be to find out if others are organizing locally.

• Contact local organizations (i.e., your local AFSC office) that work on the issues of concern to Africans and their allies to see if they have any information

• Walk around your town and check places where people display information to see if any signs or flyers are displayed that mention economic justice, debt or the African continent

• Make a list and check with local civic organizations• Check with local Quaker Meetings

o Decide if and when you would like to meet again


�. Evaluation

1. Overview

Total Time: 10 Minutes

Trainer’s goalTo evaluate your ability to convey the material, the ability of the material to convey the key concepts, and ascertain whether participants have been moved to action

Supplies neededIt is best to have an evaluation and contact card already prepared (see page 49) that also includes requests for participants’ names and contact info.

2. ExerciseA. Hand out forms B. Encourage everyone to fill in forms. Some people may decline; that is okay.


III. Additional Materials

Statements and Definitions of Global Apartheid

• "The globalization of the economy resulting among other things in rapid movements of huge volumes of capital across the globe, objectively also has the effect of limiting the possibility of states to take unilateral decisions." --South African president Thabo Mbeki describing the present international political-economic system and its’ distribution of wealth, Alastair Macdonald, ”Opening Earth Summit, South African President Mbeki Slams 'Islands of Wealth'” Reuters, Monday, August 26, 2002

• “Global apartheid is linked with the greatest crime in American history, the centrality of American racism. To fight against one or the other means we must fight against both. Martin Luther King, Jr. believed that the moral arc of the universe is long but it bends toward justice. It only bends toward justice if we commit ourselves to the fight for peace to make it so. And without justice there can be no peace. In the twenty-first century, Global Apartheid is a culmination of deeper political and economic forces that have been set into motion over the last several decades . . .the core ideology of Reaganism--free markets, unregulated corporations, the vast build-up of nuclear and conventional weapons, aggressive militarism abroad, the suppression of civil liberties and civil rights at home, the demagogic campaigns against both terrorism and Soviet communism--have actually been central to the current Bush administration's policy initiatives in its pursuit of a war against Iraq today.” --Manning Marable, “The War on Terrorism and US Hegemony--What We Have Learned” Transcript of a speech given at Simmons College, Boston MA, on October 11, 2002.

• “The G-8 represent less than 15 percent of the world's population. This is no representative democracy at work. It looks more like the South African apartheid diehards getting together. The melanin content of the G-8 is about the same, too, especially when we remember that the Japanese were regarded as "honorary Whites" in South Africa. Like South African Whites, they do represent most of the money. They don't quite have a monopoly of nuclear weapons but they have more or less 98 percent of them. They had only half of them when they first started to meet. It was the G-6 then, nearly thirty years ago. The meetings were initiated by France in the wake of the collapse of the Bretton Woods monetary system -- in which the dollar was linked to a fixed price of gold -- and the oil crisis of 1973. The others present were the United States, Britain, Germany, Italy, and Japan. Soon Canada was let in, and that's how it stayed, until the Soviet Union crumbled, when Russia joined.” --Arjun Makhijani “The G-8 and Global Apartheid” Transcript of radio commentary on public radio 89.9 FM, KUNM : Albuquerque, New Mexico, June 2004.


• “Global Apartheid is “an international system of minority rule whose attributes include: differential access to basic human rights; wealth and power structured by race and place, and structural racism; embedded in global economic processes, political institutions and cultural assumptions” -- Salih Booker and William Minter, “Global Apartheid” The Nation, July 9 2001

“We witnessed the stark contrast between settlements and surrounding Palestinian villages in Jerusalem. Ma'ale Adumim settlement resembles the American suburbs of Hollywood films–The surreal perfection of the Truman Show with flower beds in the center of the road, well watered gardens, and standard 8-bedroom houses. Just a mile below the hilltop settlement lie the 'homes' of dispossessed Bedouin who were literally loaded onto cattle trucks in 1998 and moved from the site of the settlement’s expansion. Now they live in corrugated metal and wooden shacks, held together by wholesale food packaging. Their children hold out their hands and ask for money as soon as they see us. Soon the settlers won't even have to look at the Bedouin any more thanks to the construction of the Separation Wall in between them; the very symbol of the global apartheid that separates the First World from the Third World.” --Nick Dearden, “Heroes on the Faultline of the Global Apartheid” CounterPunch: Weekend Edition, June 10 / 12 2005

• “It is the fatal coupling of power and difference—fatal in the sense that it shapes one's life (and death) circumstances—(it) exposes the true face of global apartheid. It is one in which the relatively rich and largely white are free to travel and live wherever they would like and to access the resources they "need." Meanwhile the relatively poor and largely non-white are forced to subsist in places where there are not enough resources to provide sufficient livelihood or, in order to overcome their deprivation and insecurity, to risk their lives trying to overcome ever-stronger boundary controls put into place by rich countries.” --Joseph Nevins, “Escapism and Global Apartheid: The Dominican Republic and the NYTs” CounterPunch, August 31 2004

• “Liberalization of global finance and trade is increasing economic insecurity and environmental pressures throughout the world. In many countries this is producing a protectionist backlash and ethnic conflict. This has disturbing parallels with the evolution of apartheid in South Africa, which was a response by the European minority to growing economic competition from the African majority. The parallels between apartheid and global inequality provide a wide range of insights into Western dominance of the global economy and international institutions.” --Titus Alexander, Unraveling Global Apartheid: An Overview of World Politics. Polity Press: New York, August 1996.


• “. . .economic liberalization–i.e., release of local capital from apartheid’s laager, whether via dramatically lower corporate taxes, lower tariffs on imports, or the lifting of controls that had prevented capital flight which results in the detrimental influence of international economic integration felt through new financial, trade, and investment vulnerabilities, but also in social policy that follows international norms and, to a certain extent, in political-cultural subordination to the global markets.” – Patrick Bond, Reflections from South Africa: Breaking the chains of global apartheid. Nordiska Afrikainstitutet: South Africa, July 2004.


Debt and Global Economy Terms1

ARREARS: the backlog of debt payments that have not been made and are building up over time.

BILATERAL DEBT: debt owed by one government to another.

BRETTON WOODS: the conference, held in 1944, at which the International Monetary Fund and the World Bank were established, to provide a basis for the functioning of the world economy in the post-war period, and in particular to avoid a Global Depression.

BRETTON WOODS INSTITUTIONS: term for the World Bank and International Monetary Fund.

COMMERCIAL DEBT: debt that is owed to private sector creditors and commercial banks.

CONCESSIONALITY: the extent to which the terms of a loan are more favorable to the bor-rower. Concecssional refers to lower than market interest rates. Non-concessional is when market level interest rates are used.

CONDITIONALITY: the principle that access to new loans, aid and debt relief, should be conditioned on meeting certain criteria.

DEBT CANCELLATION: the legal cancellation of a loan agreement by a creditor.

DEBT RELIEF: a somewhat ambiguous term used to refer to rescheduling and refinancing debt; debt stock reduction and/or debt-service reduction.

DEBT RESTRUCTURING: a general term for debt rescheduling and debt refinancing.

DEBT-SERVICE: the total amount a country spends on its debts, consisting of interest pay-ments and repayments of principal.

DEBT STOCK: the total amount of debt held by a country.

DEREGULATION: removal or reduction of government regulations and restrictions that af-fect the operation of a particular market or the economy as a whole.

DEVALUATION: a deliberate change in the exchange rate (under a fixed exchange rate sys-tem) involving a reduction in the value of the local currency against other currencies.

DOMESTIC DEBT: debt owed to creditors resident in the same country as the debtor, and denominated in local currency.

EXTERNAL DEBT: debt owed to foreign creditors and denomination in foreign currency

FACE VALUE OF DEBT: the value of a debt, corresponding to the total amount of principal repayments scheduled to be made on the debt by the borrower. In most cases this also corre-sponds to the amount originally lent to the borrower.

1 Provided by Jubilee USA Network, www.jubileeusa.org


FLOATING EXCHANGE RATE: an exchange rate that is determined by market forces rath-er than being set by government policy.

FOREIGN DIRECT INVESTMENT (FDI): investment made by a foreign individual or com-pany in productive capacity of another country – for example, the purchase or construction of a factory.

G8: Group of Eight refers to the US, Japan, Germany, France, the UK, Italy, Canada and Rus-sia. Formally known as the G7 before Russia officially joined in June 2002. The G8 is the most influential group of developed countries in terms of its role in the setting policy in the inter-national financial system.

GLOBAL SOUTH: Term for countries in Africa, Asia and Latin America. Generally thought of as the group of impoverished countries that are mostly in the Southern Hemisphere. A preferred term for “Third World” or “developing” countries.

GLOBAL NORTH: Term for the rich and “developed” countries, like Europe and the United States that mostly reside in the Northern Hemisphere.

GDP: gross domestic product – one of the two commonly used measures of the total output (or income) of an economy. GDP excludes net factor income from abroad (that is, interest and profits from overseas loans and investments, less payments on foreign debts and investments in the country; and net receipts of workers’ wages).

GNP: gross national product – includes net factor income from abroad (that is, interest and profits from overseas loans and investments, less payments on foreign debts and investments in the country; and net receipts of workers’ wages).

GUARANTEE EXPORT CREDIT: a loan to finance an export contract, usually made by the exporting company or a commercial bank, on which part or all of the repayments are guar-anteed by the government of the exporting country. Such guarantees are issued by the export credit guarantee agencies.

HARD CURRENCY: a general term for any currency that is widely enough accepted inter-nationally to be used in international transactions. In practice, this means the currencies of the rich countries. The term ‘hard currency’ is more or less interchangeable with ‘foreign ex-change’.

HIPC: The Heavily Indebted Poor Country Initiative, the current debt relief scheme created in 1996 by the World Bank and IMF to provide limited debt relief for the poorest countries with the goal of brining countries to a “sustainable” level of debt.

INTERNATIONAL FINANCIAL SYSTEM: the institutional system governing international transfers of resources, whether in the form of loans, investments, payments for goods and services, interest payments, profit remittances, etc.

INTERNATIONAL MONETARY FUND (IMF): the international agency responsible for the operation of the international financial system. Established in 1944, the IMF’s main op-erational roles are the general supervision of the policies of its member countries on interna-


tional payments; and, in effect, a lender of last resort for the world economy. The IMF is run by it’s country shareholders whose percentage of vote is determined by the amount of money they put in. The U.S. has the biggest percentage of vote, and virtual veto power as the big-gest shareholder. The IMF has played a central part in the debt strategy since 1982, primarily through its role of setting conditions for loans and debt relief.

INTERNATIONAL RESERVE: a government’s holdings of foreign exchange, usually held by the Central Bank.

MULTILATERAL DEBT: debt owed to a consortium of creditors, like the World Bank or re-gional development banks.

NET PRESENT VALUE (NPV): a measure of the overall value of a stream of payments over time. In effect, the NPV represents the amount that would need to be invested at a commer-cial interest rate at the beginning of the period of the payments, such that, with accumulated interest, it would be just adequate to meet all the payments as they fell due. Thus the NPV of the interest and principal repayments on a loan at a commercial interest rate is equal to its face value, while that for a concessional loan is less than its face value.

OFFICIAL CREDITORS: creditors in the public sector – that is, creditor governments and multilateral agencies such as the IMF and the World Bank.

OFFICIAL DEBT: debt that is owed to public sector lenders.

PARIS CLUB: originated in 1956 as an ad hoc group to discuss rescheduling for Argentina, now has become the forum in which creditor governments meet to negotiate the reschedul-ing of the debts owed to them.

PRIVATIZATION: the sale or transfer of state-owned enterprises, or shares in them, from the public to the private sector.

PUBLIC EXPENDITURE: the total spending of all branches of government and of other agencies in the public sector, like health and education.

PUBLICLY GUARANTEED DEBT: debt originating from loans made to state-owned enter-prises or private companies, the payment of which has been guaranteed by the government of the debtor country.

RESCHEDULING: deferment of payments of principal and/or interest due on loans, by agreement with creditors.

STRUCTURAL ADJUSTMENT PROGRAMS (SAPS): Term used to describe the set of eco-nomic policies required by the World Bank and IMF for loans and debt relief.

SUBSIDY: a payment, generally by the government or a public sector agency, to the produc-er or consumer of a good or service, intended to encourage its production and/or to reduce its cost to consumers.


TRADE LIBERALIZATION: an important component of most structural adjustment pro-grams, aimed at opening the economy to increased international trade, particularly by reduc-ing protectionism. The main elements of trade liberalization are reducing, and ultimately removing, taxes on exports, restrictions on imports and reducing the overall level of import tariffs.

WORLD BANK: the main international agency responsible for providing development finance. Established 1944, its main role was initially that of post-war reconstruction, particu-larly in Europe, but as this task was accomplished the emphasis shifted to the financing of development projects in developing countries. The Bank’s resources are provided by contri-butions from its member countries, but its operations are financed mainly by borrowing from the international financial markets. Like the IMF, the country shareholders have a percentage of votes based on the amount of resources they provide. The U.S. has the greatest control with the largest percentage of vote in the World Bank. The World Bank is made up of three main parts: the International Bank for Reconstruction and Development (IBRD), which lends mainly to the governments of middle-income countries; the International Development As-sociation (IDA), which lends only to the governments of low-income countries; and the Inter-national Financial Corporation (IFC), which lends to and invests in private sector companies in developing countries.


Trainer’s Evaluation Form

Date: Facilitator (s):

1 Were the materials clear?

2. Were the presentations clear?

3. Were your learning objectives met?

4. If so, which objectives were met?

5. If not, which objectives were not met?

6. What are your suggestions for improving the workshop?

7. Did the workshop inspire and empower you to take action?

8. What are your possible next steps?

9. What kind of support do you think you will need in the future?

10. Are you willing to help and train others?

11. Anything else you want to share?


Tips for a Smooth Presentation

When you have the dialogue and the plan for action down, you can make choices. This workshop has been designed with options, alternative exercises, sections you can skip, and sections you can expand based on the participants’ knowledge and experience level, and what they want to do with the workshop. Pick the exercises you think will work best.

Make choicesThere is more information in this guide than can be presented. Your challenge is to choose the facts and activities which you think will most powerfully communicate the essence of the situation with a particular group of participants and get people excited and ready to talk about “what to do next.”

Plan to be flexibleBe prepared to shift exercises. If questions come up, or the audience is in a different place from what you thought, you may want to change the agenda in midstream. This is one big reason why we use two trainers — while one is presenting, the other can watch and listen and say, “I think we should use exercise 4c instead of 4b.”

Allow extra timeDon’t plan 120 minutes of agenda in a two-hour workshop. Make sure to plan to run over by 15 minutes despite how well you plan your agenda. Leave yourself this extra time. If you run on schedule you will simply have more time for strategic planning of future actions.

Be positiveYou are there to promote a positive and empowering message. You are not there to voice your fury at rich nations, their government, or corrupt leaders. Be honestIt is fine to say you are not an expert or do not know the answer. Let the group know why you are taking your personal time and energy to present the workshop. There is great power in each of our own personal stories.

Create an environmentYou are charged to facilitate a comfortable environment. You may want to propose guidelines at the beginning of the workshop. You ask everyone to agree to:• Speak from your own experience and use “I” statements.• Listen carefully to each other. Respect where each of us is in the process of learning.• Ask questions. They are important; through them we all get information.• Feel comfortable disagreeing with each other and sharing your diverse perspectives. • Participation by each of us is critical. We are all resources for each other. We are also


responsible for sharing “air time” with everyone.

Public Speaking Tips• Speak slowly and clearly.• Keep the style interesting. Use a variety of tones, speed, and volume in your voice.• Consider your attitude and tone. Be non-confrontational, non-aggressive, and

positive. • Make eye contact with the entire audience. Keep scanning the crowd in order to

notice confusion, boredom, etc.• Do not use words, phrases, acronyms, or abbreviations that people do not

understand; avoid the use of rhetoric, unexplained abbreviations, or jargon.• Have a dialogue with your audience; ask open-ended questions to stimulate

involvement.• Do not take hostile remarks personally.• Keep the focus in mind and keep control of the group; it is okay to set a direction or

limit discussion.• Don’t make assumptions about the class background of the participants; making

assumptions can make people feel invisible or alienated.• Let them like you. Assume that they are interested and friendly, and don’t be afraid

to smile.

Peacebuilding Unit Africa Program1501 Cherry Street, Philadelphia, PA 19102Phone: (215) 241-7168Fax: (215) 241-7290Email: [email protected]/lifeoverdebt

life · american friends service committee life over debt workshop . learning objectives for the...

Documents