Insolvency Protection and Fairness for Greece: Implementing the Raffer Proposal Kunibert Raffer

The financial crisis in Greece and the 'austerity measures' being imposed on the country has lead to disastrous results for the economy. Contrary to mainstream prescriptions that seek to bailout big financial institutions at the expense of the real economy, an alternative proposal that was originally proposed by the author has gained much credence. The ''Raffer Proposal'' (also known as the Fair Transparent Arbitration Procedure (FTAP)) has been endorsed and propagated by many noteworthy economists, NGOs, and the Jubilee Movement. This article espouses the basic tenets of the Proposal and explains how it can help resolve the Greek crisis. Implementing_Raffer_Proposal (Download…

Insolvency Protection and Fairness for Greece: Implementing the Raffer Proposal Kunibert Raffer

The financial crisis in Greece and the ‘austerity measures’ being imposed on the country has lead to disastrous results for the economy. Contrary to mainstream prescriptions that seek to bailout big financial institutions at the expense of the real economy, an alternative proposal that was originally proposed by the author has gained much credence. The “Raffer Proposal” (also known as the Fair Transparent Arbitration Procedure (FTAP)) has been endorsed and propagated by many noteworthy economists, NGOs, and the Jubilee Movement. This article espouses the basic tenets of the Proposal and explains how it can help resolve the Greek crisis. Insolvency_Protection…

Leaning on the State C.P. Chandrasekhar

To the superstitious, recent developments in global financial markets were possible reminders that the Ides of March had arrived. To the more rational, they proved once again that finance capital, which pillories the state when it steps into the economic arena, finally uses it as a means of accumulation and leans on it in times of crisis. On March 14, Bear Stearns, the fifth largest investment bank in the United States with an 85-year history, was put on life support with what appears to be an unlimited loan facility for 28 days delivered through Wall Street Bank J.P. Morgan Chase.…

The IMF bail-out for Brazil: In whose interests? Sabyasachi Mitra

The recently announced IMF loan to Brazil, worth US$30 billion, holds out the promise of taking the Brazilian economy out of the woods. But even a cursory look at the conditions attached to it makes one realize that the loan, rather than take Brazil out of the woods (into which the IMF itself has led the country), will actually force it deeper into the forest. The strings attached to the IMF bail-out package evoke the fear that it will serve as a stranglehold on the Brazilian economy and an intrusion on the sovereignty of that country, coming as it does…