text: continent isapart,andtheindustrial, imperialist, financial North. Thismust notbeconfused withanissuethatpitsEastagainst Westinaconflict ofhegemony. secondly, theoriginalindebtedness hasbeeninflatedbytheapplicationof usurious interest rates. Interest hasbeen,inthecentral countries, notonlythe costofproductive capital, butalsoatoolfortheprocurement ofcapital toHLG/at A/40/~.5 10 cwarthedeficit proa\Jced byailitary expenditures. Thatiswhytwothlrdsof Lati~America's debthasbeenre-exported tothebanksbythedominant sectorsof ourcountries. Andiftheeffects ofunequal tradeareaddedtotheinterest rates,weseethatthesehaveamounted inrealtermstonearly25percent. Thirdly, theewer-valuation ~fthedollarasacurrency ofexchange basedupon . thepermanent devaluation suffered byourowncurrencies hasreached, according to SCDeesti1li!ltes, nearly 40percent,andwearerequired torepayourdebtsinthat currency. Igivethefollowing dramatic example frommyowncountry. Wepurchase corn frcatheunitedstatestofeedchickens withwhichwearerepaying inkindourde~t totheSovietunion. Thus,acountrythatisthreatened byhungerhastorepayits foreign debtwithfood. Wetherefore becomeastopover forproducts thattravel fro.onePowertoanother.oor/td A/40/PV.5 11 (presid~.,nt Garc£ap4're:n ~ ~ Iftothatweaadthefactthattherichcountries havebeemapplying protectionist tJ.ade polici~s, byclosing theirmarkets toourproducts, wecansee Mlythedebtsituation hasbecome untenabJLe foroureconomy. Wel'Iustask:whathasbeentheresp::lnse' tothedebtproblem inrecentyears? Firstofall,newcredits havebeenrEqUested torepayearlier debts, and higherinterest ratesandcommissions havebeenaccepted. Theresulthasbeenmore indebtedness thanbefore. Theanti-trust laws Ol~theunitedStateshavebeen violated bythebanks,whichhavejoinedincartels toavoidfreecompetition in theplacement ofcredits. Likewise, federalcreditlawshavealsobeenviolated as bankshaverenegotiated withcountries thattheyknowarebankrupt/. solelyinorder toensurethepaymentofinterest, waiving thepayment o.fprincipal, whichisthe capital ofthedepositors. Secondly, andasacondition forthisfinancial merry-go-round, theharmful termsoftheInternational Monetary Fundhavebeenaccepted, directing our countries' economies towards debtrepayment. Theletters ofintentthatexpress thesetermsareinfactletters ofcolonial submission totheprevailing injustice. Whiletherichest countriesclosetheir borders, wemustopenours,thusdestroying ourindustrial facilities andindebting ourselves inordertocontinue tobuyfromforeign industry. Asecondfactorof theletters ofintentistherequirement thatwedevalue ourcu~rency inorderto maintain theexternal competitiveness ofourproducts; that,inotherwords, means thatweareincreasing theamountofworkwemustaccomplish forthepayment ofour debt.Thethirdfactorstipulates thatthedomestic interest ratemustbelinked todevaluation, thuspromoting inflation inapermanent vicious circleof unemployment andproductive paralysis. TheInternational Monetary Fundexplains alltheseresults astheconsequence ofexcessive expenditures bytheStateandStateparticipation intheeconomy. TheA/40/PV.5 12 (President GarcfaPerez) Pund'~finalinstruction is,therefore, fiscalausterity. Investments andsocial expend~tures mustthusbecutbackinordertoguarantee thetimelyservicing of theforeign debteThesearehowthelettersofintenthavebeenapplied inrecent yearsfortheimpoverishment ofourpeoples. AsIhavesaid,ratherthanbeing letters ofintenttheseareinfactletters ofcolonial submission toinju.stice. Purtherrrore, wesaythattheInternational Monetary Punddoesnoehavethe moral autho~ity topreachauste"t'ity inourcountry, because duringtheseventies, whenitwasneces&.'\.rY top,lacepetrodollars incredits forpoorcountries, the International Monetary Fundpromoted indebtedness. Inthoseyears,itencouraged wasteandunproductive i.."'lvestments~ itwasanaccomplice ofexcessive growthin publicadmiministration. TheInternation8~ Monetary Pund,moreover, demands austerity onlyofthepoorest oountries~ itfavours themostpowerful nationon earth. Since·thenon-convertibility ofthedollarwasdeclared in1971,theunited stateshasbeentheonlyoountry thathasbeenableindefinitely toissuecurrency tocoveritsowndeficits. WhathasbeentheroleoftheIntertnational Monetary Fundinadjusting theunitedStateseconomy? AsPresident ofPeru,Iannounce thatatthenextmeetingoftheInternational Monetary Fund,inSeoul,weshalldemanddecisioos onthereformofthemonetary systemandthedistribution ofworldliquidity inafairermanner. OtherWise, we arenotinterested inbelQ'lging, norisittoouradvantage tobelong, toanagency thatbenefits asinglecountry. wetherefore reiterate thattheInternational Monetary Fundshallnotbethe
analysis: The text appears to be a critique of the economic policies of the International Monetary Fund (IMF) and its impact on developing countries, particularly Latin America. The author argues that the IMF's policies have led to increased indebtedness, poverty, and inequality, and that the organization is biased towards the interests of developed countries. The text also touches on issues of trade, currency devaluation, and the role of the IMF in promoting austerity measures.