2023-09-23 08:49:25
Saturday Sep 23, 2023
A month ago today, on August 23, Ecuador voted to abandon 225 oil wells that produce 55,000 barrels of oil a day. The Yasuni oil reserve in the Amazon was abandoned by the country to avoid becoming hostile to genetic diversity and the global climate. But Moody’s, the global rating agency, decided to teach a lesson to the people of Ecuador, who revealed their concern for the future of humanity by giving 59 percent of the vote to that decision. Ecuador’s rating has been downgraded to Caaa 3 and the debt default has been announced. That way, they will have to pay excessive interest on the loans they take. Therefore, President Guillermo Lasso says that it cannot be implemented so soon. His term ends on November 25. Before that, the election will be held on October 15. The Ecuadorian people are demanding that a rating system be created at the initiative of independent sovereign nations so that private rating agencies cannot overturn the people’s democratic decision. This demand is becoming widespread under the leadership of Ecuadorean Center for Economic and Social Rights, Latin American Network for Economic and Social Justice, EURODAD, Asian Peoples’ Movement on Debt and Development etc. “The disproportionate power of private agencies to rate country risk means that government regulatory authority and democratic decision-making is transferred to the private sector. This can create significant problems… (and) make development finance more expensive at a time when it is “needed to address the climate crisis and the international economic crisis”, they strongly declare. Three thirds of private credit rating agencies are now in charge of credit rating in the world. Their share is 95 percent. The demand to end this monopoly is growing. All democrats need to support this effort to uphold the sovereignty of peoples to determine their own destiny. Read on deshabhimani.com
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