From 1957 to 1986, Haiti was ruled by the defiantly kleptocratic Duvalier regime. Unlike the French debt, the case against the Duvaliers made it into several courts, which traced Haitian funds to an elaborate network of Swiss bank accounts and lavish properties. In 1988 Kurzban won a landmark suit against Jean-Claude "Baby Doc" Duvalier when a US District Court in Miami found that the deposed ruler had "misappropriated more than $504,000,000 from public monies."
Haitians, of course, are still waiting for their payback--but that was only the beginning of their losses. For more than two decades, the country's creditors insisted that Haitians honor the huge debts incurred by the Duvaliers, estimated at $844 million, much of it owed to institutions like the IMF and the World Bank. In debt service alone, Haitians have paid out tens of millions every year.
Was it legal for foreign lenders to collect on the Duvalier debts when so much of it was never spent in Haiti? Very likely not. As Cephas Lumina, the United Nations Independent Expert on foreign debt, put it to me, "the case of Haiti is one of the best examples of odious debt in the world. On that basis alone the debt should be unconditionally canceled."
Tuesday, February 16, 2010
Another Donation to Haiti
Naomi Klein in The Nation: Don't cancel Haiti's debt, pay them back.