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World Trade

An easy-to-understand account of how world trade works.

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Introduction

Despite what we are told by Western governments (if the issue is discussed at all), world trade is aranged in such a way as to benefit the richer countries.

The richer countries (also called the developed countries or Western countries) are mainly located in North America and Europe but also include Australia and Japan. These countries have the highest standards of living (at least for some of the population) and have strong currencies.

The poorer countries (also called the developing countries or third world countries) are essentially treated as sources of raw materials. These materials are sold cheaply to the richer countries where they are processed into goods that are sold around the world (including back to the poorer countries which supplied the materials). Poorer countries are often unable to process their own raw materials into goods. If they do and attempt to sell these products, the richer countries put charges (called tariffs) onto these goods to make them more expensive.

Some processing of raw materials does occur in the poorer countries. But this is usually controlled by companies owned by the richer countries. The reason they locate their processing plants in poorer countries is to benefit from cheap labour, lax safety laws, and a lenient tax regime. Some examples below.

Year	Details
1996	UK imported $12 million worth of sporting goods from India where they are manufactured by bonded child labour.
1996	USA leisure and sporting companies use cheap labour and lax labour laws in Haiti.

People in the poorer countries struggle to live on the megre profits made by selling their raw materials. They also pay the price in terms of pollution and bad work conditions. People in the richer countries pay far more than they should for goods. The beneficiaries of this system are the large companies owned by the richer countries and the people that run them.

This essay attempts to illustrate these points including a look at the language used to obscure what is actually happening.

These are some of the euphamisms that are used to obscure what is actually happening in the world of economics:

Open up the economy to competition: allow Western companies access to a country's resources.
Competitiveness: low labour costs and taxes; lax safety laws. Ideal for maximizing profits.
State subsidy for business: giving tax payers' money to corporations.
Export Credits: the tax payer underwriting a company's activities in other countries so that the public takes the risks and the company takes the profits.
Free Trade: trade that is favourable to the richer countries.
Stability: conditions favourable to trade for the benefit of the West.
Developing Nations: the poorer countries.
Structural Adjustment Programs: World Bank and International Monetary Fund conditions imposed on countries seeking loans. These normally require the economy to be opened up to competition and public services to be reduced.
Free Market Reforms: economic system that has pushed 60 million Russians below the poverty line by devaluing their pensions and forces children in Mongolia to live in the sewers.
Capital Market Liberalisation: in theory allows the free flow of money in and out of a country - in practice money flows from poorer countries to rich countries. Business activities do not benefit the host country but the multinationals.

Free Trade should be the exchange of goods for money between equal partners in a fair market place. The world, however, is divided into the richer countries (that control the trade of the world and make the rules) and the poorer countries that trade on terms that they have no, or little, say in. Most trade rules are set up under the control of the large multinational companies (which are owned by more than one country) or transnational companies (that trade in many countries).

There are many methods of controlling trade and these are described in turn.

Tariffs and Subsides

Tariffs are charges on processed goods. Western countries use these to keep out products from the poorer countries. Poorer countries are thus excluded from trading on equal terms. The only course open to many of these countries is to sell their raw materials to the richer countries.

If poorer countries impose tariffs on goods from the West, they are demonised. They are often forced to remove their tariffs by threats of sanctions (boycotts) or worse. The world trade rules as enforced by international bodies (controlled by the richer countries) insist on poorer countries removing their tariffs.

A Subsidy is money given by a population to large companies to help them stay in business or produce goods at a low cost. Subsidies are given names to obscure what they really are:

Government subsidy,
tax credit,
export credits,
tax holiday,
tax incentive,
tax concession
bail-out to save jobs,
business incentive,
research grants in the case of arms and pharmaceutical.

Subsidies make the cost of goods artificially low. In many cases the cost becomes lower than the cost to produce the same goods in the poorer countries. Inefficient produces in the rich countries are paid to rpoduce goods that could be produced more efficiently in the poorer countries.

Surplusses of these goods can then be used politically. They are often sold cheaply to the poorer countries. This has the effect of putting the local produces or growers of these goods out of business. This is called dumping.

A poor country could resist dumping either by putting on a tarriff or subsidising its own industry. If they attempt this, however, they are accused by the West of having closed markets or hindering free trade. Poor countries have been forced by the West to remove their own tariffs and subsidies by threats of sanctions or suspension of aid.

No Western country is ever accused of "hindering free trade" in the Western media even though they impose tariffs on goods from poorer countries and subsidise their own industries.

Examples of these unfair trading practices are shown below.

Year	Country	Event	Perpetrator	Reason
1950	Colombia	Dumping subsidised food.	USA	To destroy the country's agricultural industry. The country would become dependent on growing cash crops (to be sold to the USA).
1998	South Korea	Dumping subsidised food.	USA	To destroy the country's agricultural industry and make it dependent on imported food (from the USA).
2000	Africa Asia	Threats of economic sanctions.	USA UK	To force countries to import (and advertise) USA and UK tobacco products. At the same time the UK and USA are running programs to stop their own citizens smoking.
2002	China	Computer companies using poorer countries with lax pollution laws to dispose of waste products.	USA	USA wants to rid itself of waste.
2002	West Africa	High technology fishing.	Europe Japan	Access to fish and seafood.
2002	Europe	Trade tariffs.	USA	Protect its own markets.
2002	Uganda	Unfair trade.	USA Switzerland	Large transnational companies make huge profits from coffee.
2003	Africa	Effects of subsidies and tariffs on several countries in Africa.	Rich Countries	Richer countries benefitting from unfair trade.
2003	Poor Countries	Effects of subsidies and tariffs on world trade.	Rich Countries	Richer countries benefitting from unfair trade.

Coercive Economic Diplomacy

The richer and more powerful countries use Coercive Economic Diplomacy to force weaker and poorer countries to play by trade rules that do not suit them. The main tools used are Sanctions, Economic Sabotage and Dependent Aid.

Sanctions are essentially a boycott of a country so that it cannot trade. Sanctions can be legally approved by the United Nations in cases where a rogue country is defying the world community.

More often, sanctions are imposed unilaterally by the richer countries on poorer nations and states. These sanctions are used for political or economic coersion. If sanctions do not work, some nations use economic sabotage (actions that affect the country's produce, infrastructure or economy - sometimes very violently) or offers of aid dependent on compliance (better known as bribes) to achieve their ends.

Examples can be seen from the table below.

Year	Country	Event	Perpetrator	Reason
1956	Egypt	Economic sanctions and invasion.	UK France Israel	Egypt under Adbul Nasser had nationalised (taken ownership of) the Suez Canal. The canal had been built by Western powers in Egypt while the country was a colony.
1959	Cuba	Sanctions against sugar.	USA	Previous pro-USA dictatorship of Fulgencio Batista had been removed by a popular uprising lead by Fidel Castro. The USA continues its boycott of Cuba (to 2006), encouraging or threatening other nations to comply. A 1993 report describes the economic effects.
1960	Cuba	Trade embargo. Threats to other countries trading with Cuba.	USA	USA wanted a pro-West government and economic influence in Cuba.
1962	Cuba	Undercover operations against sugar and turkeys. Industrial sabotage.	USA	USA wanted a pro-West government and economic influence in Cuba.
1963	Indonesia	Suspension of aid.	UK	Government controlled access of UK companies to the country.
1971	Cuba	Sabotage of pig industry.	USA	USA wanted a pro-West government and economic influence in Cuba.
1974	Vietnam	Trade embargo.	USA	To weaken the country.
1975	Vietnam	Suspension of aid by World Bank. $70 million assets frozen.	USA	Vietnam had defeated the USA. Vietnam is eventually forced to repay South Vietnam's debt (incurred while it was a USA puppet).
1979	Vietnam	Suspention of aid for children by European Community. Continuation of trade boycott.	UK USA	Vietnam had defeated the USA.
1980	Cambodia	Economic aid to the Khmer Rouge.	USA	This brutal ex-government opposed the new government in Cambodia that was supported by Vietnam.
1981	Tanzania	Campaign to force the country to change its economic policies.	USA	USA companies wanted access to raw materials and markets of the country.
1981	Mozambique Angola Lesotho Zimbabwe	Economic sabotage.	South Africa	South Africa wanted to crush independence and democracy movements in the region. The USA and UK ignore UN approved sanctions against South Africa.
1981	Laos Cambodia Vietnam	Denial of aid to help with seed storage and bee keeping.	USA	The USA disapproved of the three governments.
1982	Mozambique	Economic sabotage. Destruction of oil pipelines.	South Africa	South Africa wanted to crush independence and democracy movements in the region. The USA and UK ignore UN approved sanctions against South Africa and secretly trade. The USA secures a $1,1000 million IMF loan for South Africa.
1983	Nicaragua	Economic sabotage. Destruction of agricultural collectives. Mining of ports. Blocking of previously agreed loans from the World Bank.	USA	A popular uprising had removed the previous government, a USA backed dictatorship.
1984	Mozambique	Holding back of food aid during a famine.	USA	The USA wanted the country to sign a treaty with South Africa.
1985	New Zealand	Withdrawal of concessions for military equipment.	USA	New Zealand had supported the declaration of the Pacific Ocean as a Nuclear Free Zone.
1986	Nicaragua	Refusal to pay $17 million when ordered by the World Court.	USA	The USA had been found guilty in the World Court for economic sabotage.
1988	Iran	Bombing of oil facilities; shooting down commercial airliner.	USA	USA companies had been expelled from Iran. These companies had been allowed into Iran by the previous, unelected and USA backed dictatorship.
1989	Cambodia	Arms and training to Khmer Rouge.	USA UK	Cambodia's government supported by Vietnam.
1990	Nicaragua	Promise of aid and an end to the (USA-backed) insurgency if the presidential candidate preferred by the USA wins election. $9 million in election funds for preferred party.	USA	To gain a favourable environment for USA companies.
1991	Iraq	Severe sanctions imposed until leadership acceptible to the West is in place.	USA UK	Former favourite of the USA and UK, Saddam Hussein is out of favour after invading Kuwait. The sanctions would kill 1000 children a month for the next 12 years.
1992	Albania	Albanians are promised aid if the Communist Party does not win the elections it had won previously.	USA	To gain a favourable environment for USA companies.
1992	Angola	Insurgents financed and armed.	USA	Government refuses to allow access to country's oil and diamonds.
1994	Palestinian Territories	Economic blockade.	Israel	To crush resistance to occupation.
1994	Jordan	Promise of aid if Jordan will deny the right of Palestinians to return to lands they were expelled from by Israel.	USA	To protect the existance of Israel.
1994	Argentina	$10 million bribe to stop the investigation into the bombing of a Jewish centre in Buenos Aires.	Iran	Unknown.
1994	Burma	USA oil company (Unocal) pays ruling military for its security.	USA	The military forceably relocate people living in the path of a pipeline being constructed.
1995	Mexico	Aid to suppress popular revolt by indigenous people.	USA	USA companies want land inhabited by indigenous people for cash crops and access to oil and minerals.
1995	Iran	Oil and trade embargo imposed.	USA	Iran's government does not allow USA companies access to its oil.
1996	Iraq	Millions of dollars to the Iraqi National Accord, a group that uses terror tactics to distabilase the government of Saddam Hussein.	USA	USA would like a compliant governmnet for guaranteed access to oil.
1996	Cuba	Agricultural sabotage.	USA	USA wanted a pro-West government and economic influence in Cuba.
1997	Iraq	The United Nations (under USA and UK pressure) continue sanctions that have killed over 1,200,000 people.	UK USA	Control of oil.
1998	Sudan	Missile attack on a pharmaceutical factory.	USA	"An error" according to USA.
1998	World Heath Organisation	Threatened with withdrawal of funding if the organisation examines the effects of trade conditions on world health.	USA	The USA wants to continues its business practices regardless of their human effects.
1999	Cuba	For the eighth year running, the United Nations fails to pass a resolution condemning the USA economic embargo.	USA	Cuba is outside the USA economic sphere.
2001	Turkey Pakistan Oman Iran China Malaysia	Aid, trade and arms sales in return for support of USA attack on Afghanistan.	USA	To install a pro-West government in Afghanistan that will facilitate access to Central Asian oil.
2002	Palestine	Destruction of economic facilities supplied by Europe.	Israel	To break resistance to the Israeli occupation.
2002	China	Airline company places bugs in government minister's air craft.	USA	Unknown.
2002	Angola	Former USA backed rebel, Jonas Savimbi, killed once concessions received.	USA	The USA had used Savimbi to destabilise Angola until they received concessions on the country's oil and diamonds.
2002	Lebanon	Threats to attack a water pipleine.	Israel	Unknown.
2003	Turkey Jordan Angola Chile Guinea Cameroon Mexico Pakistan	Economic threats and inducements in return for supporting an invasion of Iraq.	USA	Access to miltary bases and oil once a pro-West regime is installed.
2003	Palestine	Destruction of 62 shops and a vegetable market.	Israel	To break resistance to the Israeli occupation.
2003	78 Countries	Threats to stop aid, trade and military support unless the USA is excempt from being prosecuted under the International Criminal Court.	USA	USA does not want international laws to apply to itself.
2003	171 Countries	Excemption forced from a treaty to curtail tobacco advertising.	USA	USA wants to sell tobacco products to other countries as anti-smoking laws affect profits in the USA.
2003	Europe	Attempt to force testing of potentially toxic chemicals to be abandoned.	USA	USA wants to protect its exports from from regulations.
2004	Syria	Economic sanctions.	USA	USA disagrees with Syria's support of Palestinians.
2006	Palestine	Economic sanctions.	USA Europe Israel	Palestinians had elected a government not to the West's liking.

International Bodies, Front Organisations

A number of international bodies have been set up to regulate trade and finance projects around the world. These bodies are controlled by the richer countries. Their main function seems to be to over-ride democratic control of trade. Some examples of these activities are below.

Year	Body	Details
1995	The World Trade Organisation	Founded by 134 countries.
1997	International Monetary Fund	Privatisation of schools.
1998	The World Trade Organisation	Canada forced to accept a dangerous petrol additive.
1998	The World Trade Organisation	Activities to help USA companies in India, Bangladesh, South Africa and Europe.
1999	The World Trade Organisation	Activities to help USA banana companies in Europe.
1999	International Monetary Fund	Effects on the environment and AIDS in Brazil.
2001	The World Trade Organisation	Attempts to over-ride local laws of Colombia, Brunei, Pakistan, Brazil, Venezuela, UK and France.
2001	International Monetary Fund	Countries are forced to remove trade barriers, sell national assets to foreign investors, slash social spending.

Large transnational companies set up front organisations to further their interests and discredit information about unfair trade, exploitation of workers (including children in some countries), excessive pollution and other human rights violations. An example is The Global Climate Coalition. In 1996 they campaigned to discredit global warming scientists.

Support for Authoritarian Governments

Authoritarian governments (which are often unelected or military dictatorships) usually make trade agreements with the West. These agreements suit the West and enrich the government. The oppressed and unrepresented popuations gain very little and are used as sources of cheap labour when laws that protect them are removed.

Unelected governments are loaned money by Western banks for projects that often do not benefit the population. Most of the money disappears into secret bank accounts. Even if the country later becomes democratic, the people of these countries still have to repay the debt even though it was taken out without their consent by an unrepresentitive government.

The West has often removed governments that were not helpful to Western business interests. These were usually replaced with more compliant regimes, many with dreadful human rights records. Economically compliant regimes are normally referred to by many names that obscure their relationship with the West or their own people:

allies,
moderate states,
friendly states,
free markets or free market economies,
freedom loving peoples,
fledgling democracies,
open societies.

Non-compliant regimes are demonised.

The West also has a long history of supporting repressive regimes if its business interests are served.

Examples are shown in the table below.

Year	Country	Event	Perpetrators	Reasons / Benefits
1953	Iran	Replacement of democratic leader, Mohammed Mossadeq with dictatoirship of the Shah, Reza Pahlavi.	USA UK	The new regime gave access to oil for Anglo-American companies. The USA trained the Iranian secret police to oppress dissidents.
1953	British Guyana	Removal of democratic leader, Cheddi Jagan and preventing him from taking power after being re-elected.	UK USA	UK companies gained access to sugar and bauxite (an ore of aluminium).
1954	Guatemala	Removal of democratic leader, Juan Jos� Ar�valo by a military coup.	USA	USA companies gained access to banana plantations, cheap labour and lax labour laws. The USA financed the military which brutally crushed all dissent and union activity.
1954	Paraguay	Removal of the Ache people from their land under a newly established dictatorship.	USA Europe	Access forests and mines.
1960	Congo	Assassination of popular leader, Patrice Lumumba and the placement of brutal dictator, Moise Tshombe, in his place.	Belgium USA	Western companies gained access to minerals like uranium. The exesses of the dictator were used as propaganda against black rule in Africa.
1960	Iraq	Attempted assassination of Abdul Karim Kassem. Destabilisation of country by funding minority Kurdish population.	USA	Karim had helped found OPEC to control oil prices and production for the benefit of the producers.
1963	Dominican Republic	Military intervention to protect newly installed military government.	USA	To protect USA business interests and set up an economic system suitable for the USA. A 1989 report describes the economic results.
1963	Honduras	Aid to the military after they take power in a coup.	USA	USA companies gained access to raw materials and plantations.
1963	Iraq	Overthrow and execution of Abdul Karim Kassem by the Ba'ath Party.	USA UK	Karim had wanted to nationalise Iraq's oil whicxh was controlled by USA and UK companies.
1964	Brazil	Economic and political support for new military government.	USA	The previous government had passed laws helping workers and limiting the profits that could be taken out of Brazil by trans-national companies. The new government reversed these changes. A 1989 report describes the economic results.
1965	Dominican Republic	Military intervention to prevent previously elected Juan Bosch from taking power and keep the military in power.	USA	To protect USA business interests.
1965	Indonesia	Political and undercover support for coup.	USA UK	To gain UK and USA access to the country's resources.
1965	Congo (Zaire)	Support for Mobutu Sese Seko who had taken power in a coup.	USA	To gain USA access to cobalt, copper, and diamonds.
1966	Central Africa	Political and economic support for Bokassa who had come to power in a military coup.	France South Africa USA	To keep Western concessions on uranium mining.
1966	Ghana	Removal of Kwame Nkrumah from power.	USA	Nkrumah had wanted to lessen his country's economic and political dependece on the West.
1969	West Papua	Annexation by Indonesia.	Indonesia UN	The West wanted control by a friendly government of the copper mining industry which was worth $1,400 million and partly owned by a UK company.
1970	Bolivia	Military coup to remove Juan Jose Torres.	USA	Torres had nationalised oil and the tin mines.
1973	Chile	Military coup to remove Salvador Allende.	USA	USA did not like socialist economic policies of the elected government. The USA had attempted to sabotage Allende's election campaign in 1964 (successfully) and 1970 (unsuccessfully). A 1989 report describes the economic results.
1975	East Timor	Invasion by Indonesia.	Australia USA	The West wanted access to oil in the region and preferred a friendly dictator ruling the area rather than an independent state.
1976	Jamaica	Attempted assassination of Michael Manley.	USA	Manley had established ties with Cuba and wanted more control of the island's aluminium.
1980	Liberia	Economic and political support for Samuel Doe who took power in a military coup.	USA	USA companies gain access to rubber.
1983	Grenada	Removal of Maurice Bishop and replacing him with a pro-West government.	USA	The island became a tax and off-shore banking haven.
1983	Guatemala	Loans by the World Bank to build the Chixoy Dam even though the government (which is unelected) is forceably removing and killing indigenous people who live on the site of the dam.	World Bank	This increases the country's debt.
1988	Iraq	Secretly selling machine parts and propellant to oppressive dictatorship that had just used poison gas on its Kurdish population.	UK	Iraq was fighting Iran with Western backing. The USA also increased its trade with the regime.
1988	Burma	Oil companies involved with the military government to remove opposition to oil exploration and to procure cheap labour.	USA France	For access to the country's oil.
1988	Colombia	Subsidised arms sales to a brutal regime that crushes opponents and human rights activists.	USA	For access to the country's oil and coffee.
1989	El Salvador	$1 million per day in aid to a military regime.	USA	For access to the country's coffee.
1989	China	$300 million business contracts approved with regime that had massacred thousands of students at Tienanmen Sqaure.	USA	For access to the country's huge markets.
1993	Nigeria	Support for military coup.	UK	Regime promises to honour oil concessions to UK companies.
1994	Haiti	Military action to keep elected leader, Jean-Bertrand Aristide, from taking power.	USA	To gain access to agricultural land and a dispossessed population that will provide cheap labour for USA companies.
1994	Nigeria	Providing wealth to a military regime by processing its oil.	UK Netherlands	Regime facilitates extraction of oil by oppressing the inhabitants of the Ogoni region.
1995	Afghanistan	Offering the authoritarian Taliban 15%. on all oil and gas transported through a proposed pipeleine from Central Asia to Pakistan.	USA	Since the collapse of the Soviet Union, the USA has wanted access to the oil and gas reserves in Central Asia.
1996	Turkey	Supply of weapons used in oppression of the Kurdish population.	NATO	Turkey has a pro-West government and houses USA military bases. Arms providers are USA, Germany, Italy, France, Netherlands, UK, Spain, Canada and Belgium
1996	Burma	Support for tourist industry.	UK	Military government uses slave labour to build tourist infrastructure for luxury tours run by UK companies.
1996	East Timor	Trade treaty with Indonesia, the occupying power that had killed 200,000 people.	Australia	To exploit oil and fishing. Western countries continue to arm Indonesia during this period.
1997	Indonesia	Trading and arming a brutal dictatorship. Companies collude with military to surpress dissent.	USA UK	To build a paper mill and access to oil and minerals.
1997	Colombia Indonesia South Africa	Trading with brutal dictatorship. Companies collude with military to surpress dissent.	UK	Access to oil, minerals.
1998	Afghanistan	Financing and supporting theocratic government.	USA UK Saudi Arabia Pakistan	The West hopes to get an oil pipeline across the country to link Central Asia with the Persian Gulf.
1998	Turkey	Military aid to a country that oppresses its Kurdish population.	USA	The USA has military bases in (Kurdish) eastern Turkey.
1998	Burma	Trading with a brutal military regime that uses slave labour.	France USA UK Japan Netherlands Ireland Australia	For the region's oil and minerals.
1999	East Timor	Military aid to Indonesia while it continues oppressing East Timor.	UK	UK has oil interests.
1999	Guatemala	Military aid to brutal regime that keeps workers in virtual slavery.	USA	USA owned coffee plantations.
2000	Kyrgyzstan	Finance to a country that oppresses oponents.	USA	To gain political influence in Central Asia and its oil.
2000	Turkey	Selling arms which are used to oppress the Kurdish population.	UK	To maintain arms industry.
2001	Afghanistan	Funding opposing warlords, each with dreadful human rights records.	Pakistan Russia	To gain influence in a strategic region.
2001	Colombia	Funding the military government which oppresses its own people.	USA	Protecting USA oil interests.
2001	Israel / Palestine	$1,800 million annually in aid to a country that has been occupying Palestinian land since 1967.	USA	Support for an ally in the Middle East.
2001	Sudan	Oil companies helping military to depopulate areas wanted for oil exploration.	Canada Sweden France Austria	Access to the country's oil.
2001	Indonesia Zaire Turkey Nigeria Guatemala Tanzania	Suppying arms to regimes with bad human rights records.	UK	Support for arms industry.
2001	Chad	Finance for a pipeline to a government that had won fraudulent elections.	USA Malaysia	Access to the country's oil.
2001	Burma Indonesia Kenya Nigeria	Oil and mining activities that adversly affect local people and the environment.	Canada USA World Bank	Access to the countries' oil and minerals.
2002	Botswana	Diamond mining on Bushman land after they were encoraged to leave by the government cutting off their water supply.	South Africa USA UK	Access to the country's diamonds.
2002	Brazil China Colombia India Indonesia Mexico Nigeria Philippines Russia SaudiArabia Turkey	Companies trading with countries that violate human rights.	USA UK Europe	Access to markets and raw materials.
2002	Africa	Effects of unfair trade on Africa.	Rich Countries	Access to markets and raw materials.
2002	Turkey Georgia	Banks finance dam that will displace people and affect water supplies.	UK France	Banking.
2002	Africa Asia	Banks finance various projects that will adversly affect local people.	UK	Banking.
2002	Burma	Tobacco factory (partly owned by ruling Burmese military) pays less than poverty wages.	UK USA	Tobacco processing.
2002	Sudan	Depopulation in areas being explored for oil.	UK France	Oil.
2002	Israel India Russia Sri Lanka Nigeria Indonesia Philippines Algeria Pakistan Turkey Saudi Arabia China	Selling arms to undemocratic, authoritarian or oppressive regimes.	UK	Arms trade.
2003	Algeria	Selling arms and trading with an undemocratic oppressive regime.	USA Europe	Gas.
2003	Congo	Selling arms and financing countries with troops in the Congo war.	UK	Trade and arms sales to Rwanda, Uganda, Angola, Namibia and Burundi.
2003	Indonesia	Selling arms to a country that is brutally repressing the Aceh region.	UK	The arms trade.
2004	Haiti	Replacement of democratically elected leader (Jean-Bertrand Aristide) who would not privatise all the country's resources.	USA France	Mainly plantations and cheap labour.

USA, UK and French oil companies have long traded with unelected or authoritarian governments, like Saudi Arabia (an absolute monarchy), Iran (under the Shah between 1953 and 1979), Iraq (before 1989). Oil is sold at a cheap rate to run the economies of the richer countries. When the oil producing countries attempted to set up a cartel to get a better price, this was opposed by the Western countries, often with violence.

Western Banks invested heavilly in apartheid South Africa (before 1991) and loaned money to military dictatorships in South America. These loans are expected to be repaid by the populations of these countries who had no say in the taking out of the loans in the first place.

Aid And Debt

Aid is often described in the Western media as financial help given by richer countries to poorer countries.

This is rarely true when governments are involved.

Most Western aid comes from "government money". This is really money from the people of the Western country involved. This money is used to allow a poorer country to buy goods or a service that are provided by a company from a Western country. Often it is a condition of the aid that the doner country can nominate the company that provides the goods or service.

The majority of the aid money often goes from a government bank account to the company's bank account without going anywhere the country receiving the aid. There will be some benefit (called a commission or a consultancy fee) to the company officials who have brokered the deal which may include politicians from the two countries.

The people of the Western country pay the monetary cost of the "aid". The majority of the people of the poorer country get very little. These types of government aid projects are for dams, military goods, airports and other high profile items. Much aid has a political purpose as it is to countries with a strategic value rather than the poorest countries that might need aid.

Many poorer countries have amassed an enormous debt which they are struggling to pay. Many are even struggling to pay the interest on the debt. Social services and infrastructure are sacrificed to service the debt.

In a large number of cases, it is unelected governments that were loaned money by Western banks. Often the money is used for projects that fail to benefit the population. Much of the money disappears into secret bank accounts, enriching members of the government and their families. Even if the country later becomes democratic, the people of these countries still have to repay the debt even though it was taken out without their consent by an unrepresentitive government.

Year	Country	Notes
1989	Poor Countries	11 million children die every year from easily preventable deseases.
1994	Poor Countries	500,000 children die every year due to debt repayments.
1994	Malaysia	A UK company (Balfour Beatty) to build a dam at Pergau in return for Malaysia buying arms worth $1,000 million from UK companies.
1996	Indonesia Oman Ecuador	All countries that recieve a large amount of UK aid even though they are not the poorest in their regions. They are also important purchasers of UK arms.

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