Thursday, December 5, 2013

Peaceful financial revolution in Iceland

Peaceful financial revolution in Iceland
In CONTEMPORARY world, as practice shows, even small countries can do revolution. One such country is Iceland. Country that a few years ago was plunged into a financial abyss now feels great. This story is a little north of the country in the fight against the economic crisis can be useful not only to the Greeks, but also Russians.

October 23 this year in Iceland held a referendum, which adopted a new constitution. This referendum - the final chord in the struggle waged by the people of Iceland since 2008, when Icelanders suddenly learned that the financial crisis their country - a member of the European Union, by the way - literally bankrupt.
Surprisingly, it was because of what happened after 5 years of prosperity, provided the "most effective" neoliberal economy.Built on the fact that in 2003 all the country's banks were privatized, and in order to attract foreign investors, they practiced online banking, which at minimum cost and a relatively high yield.
Indeed, the Icelandic banks have attracted many small British and Dutch investors, and all going better than ever, and the economy (with the neoliberal perspective) grew, blossomed and smelled. But there was, as usual, a caveat: the more to attract investment - the faster growing and external debt of banks. In 2003 Iceland's debt was equal to 200% of GDP, and in 2007 was already 900%. The global financial crisis of 2008 was for a "prosperous" economy of Iceland fatal blow. The three main Icelandic banks: Landbanki, Kapthing and Glitnir-burst and were nationalized, and the crown has lost 85% of its value against the euro.And at the end of the year Iceland declared bankruptcy. And then it is time to remember that Iceland - a democratic country. But first, the Icelanders decided to rely on the "normal" representative democracy. A few months after the collapse of the Icelandic banks took to the streets to protest against bankers that caused the crisis, and ignorant politicians who allowed its development.Protests and riots, eventually forced the government to resign. Elections were held in April 2009, based on their results came to power left coalition, which on the one hand, immediately condemned the neoliberal economic system, but on the other hand, once also surrendered to the World Bank and the European Union to pay off debts of Icelandic banks for a total of three and a half billion euros. This meant that every citizen of Iceland for fifteen years would have to pay monthly 100 euros - to pay off the debts of some individuals (bank owners) in front of other individuals. This was too much even for peaceful Icelanders. And led to quite an extraordinary course of events. The idea that citizens must pay for the mistakes of private financiers, that the whole country shall be packed tribute to repay private debt, was so unacceptable that has spawned a new wave of mass protests. Leaders who literally forced Iceland to the side of the majority population. As a result, President Olafur Ragnar Grimsson has refused to ratify the law passed by parliament that would make citizens responsible for the debts of Iceland Icelandic bankers, and agreedto hold a referendum. followed a very typical of the "free world" reaction "international community" - in Iceland was put unprecedented pressure. Great Britain and Holland threatened - in the case of non-payment of debts of Icelandic banks its citizens - the harsh economic sanctions, up to the complete isolation of Iceland. IMF threatened to deprive the country of any of its assistance. The British government threatened to freeze savings and checking accounts Icelanders. But Icelanders did not succumb to the pressure, and the President Grimmson spoke as follows: "We were told that if we do not accept the conditions of the international community, it will become the northern Cuba. But if we agree, then would become northern Haiti. " referendum was held in March 2010 It Icelanders decided not to return the money to foreign creditors - the UK and the Netherlands - 93% of the participants voted against the payment of bank debt. The IMF immediately froze lending. But Icelanders have been unstoppable. With the support of civil government initiated a civil and criminal investigation against those responsible for the financial crisis. Interpol issued an international arrest warrant for former president of the bank Kaupthing Sigurdur Einarsson, bankers and others are also involved in the crash fled the country. But that was not all. Icelanders did not stop there - it was decided to adopt a new constitution that would free the country from the power of international finance and virtual money. While Icelanders want to write a new constitution for yourself all together. And we did it! Draft Basic Law wrote 950 ordinary citizens arbitrarily chosen (by lottery system) members of the National Assembly in 2010 to finalize the new constitution, the people of Iceland elected (already in the election), the Constitutional Council, which included 25 citizens. Ordinary people - fishermen, farmers, doctors, housewives - were chosen from among 522 adults not belonging to any political party, each of which recommend a minimum of 30 people. And, according to Russia's "democratic" journalist Paul gingerbread article with a characteristic entitled "Every cook can write a constitution": "We emphasize that no one in Iceland indignant that you can not read the biography of the man 522 and their political program, as well as to understand the ballot, which listed the names of so many people." Then began revision of the Constitution and constitutional laws. To quote the same P.Pryanikova: "Well, then, the Council has used crowdsourcing system - access for all people to work. Offers citizens going through the "Facebook", "Twitter" and even "YouTube." Everything from simple Icelanders received 3600 comments to the Council and 370 amendments to the Constitution. Every week, the Council published a new article on the Internet for public discussion. After two or three weeks, after viewing suggestions from the public and experts, the Council published the final version of articles, which are then discussed again. In addition, members of the Council once a week recorded the story of his work and laid it on "YouTube" and their meetings can be broadcasted live on the Internet. At the end of all 25 members voted for the finalization of the Basic Law."We, the people of Iceland, we wish to create an equitable society where each of us will have an equal place at the table" - these words begins the Constitution. " In comments, members of the Constitutional Council ruled that translated into foreign languages, the first sentence of the Constitution sounds a bit sloppy However, in their opinion, it is clear to every Icelander and best reflects the desire to create equal opportunities for all. According to the draft Constitution, the natural resources of the island are located exclusively in the public domain. Of particular interest is an article entitled "Public Information and truthfulness", which obliges the government to keep in the public domain, all working documents if they are not a state secret. Also, the Constitution obliges the authorities to work for the benefit of not only the man but also the Earth and the biosphere. A separate article reinforces the rights of animals. in innovative document was a place for a very archaic rules, excluded from most European constitutions. Thus, the Evangelical Lutheran Church of Iceland maintains state status. It is worth noting one significant for the further development of events nuance. The Constitutional Council in its composition was, as called now, "evrosotsialisticheskim." And not so much because most Icelanders leftist much due quite simply shortsighted and foolish behavior of Icelandic law: former previously in power "Progressive Party" and "Independence Party" called on his supporters to boycott the elections, the Constitutional Council and the work on the Constitution, and their voters did so. As a result, and in the Council, and in the text of the new Constitution and the influence of right-wing conservatives have been minimal. Thus, as a result of the cumulative effects of both objective and subjective factors, most unexpectedly master of the situation - and the Constitutional Council, and participants in the development of the Constitution, and among voters in a referendum. And the result is so "exceeded expectations", which has been more than a month the world's leading media eloquently silent on the outcome of the Icelandic national referendum on October 23, at which the draft constitution approved more than 80% of Icelanders with a turnout of 66%. Well, you understand? Prevent most cost to the development and adoption of the Constitution and constitutional laws, as instead of privatization as a panacea for all the ills of the economy "receive" the nationalization of resources, rather than a state secret - openness, instead of strictly representative democracy - the elements of direct democracy. And God forbid (in terms of neoliberal Governments around the world) will follow the example of Iceland to other countries. In fact, today the same solutions as Iceland 2 years ago, offered to other nations. Greece people say that the privatization of their public sector is the only solution. Say the same Italians, Spanish and Portuguese ... What if they follow the example of Iceland? Scary to think ...But this goes! Many of our travelers who hinder cultural rest continuously striking "European pig» (PIGS - common designation of the four countries of the European Union on the verge of bankruptcy: Portugal (P), Italy (I), Greece (G), Spain (S)), pay note that many banners reason often cited Iceland. But these trifles news programs also do not mention - they are interested in the main - the conditions under which these "pigs" graciously agreed to take the proposed loan to pay off debts of private banks burst.That's why you did not know anything about Icelandic referendum - the world's media pretend that nothing did not happen. After all, the media, as well as governments and parliaments as also represent the interests of the ruling class, which - in any country - oh how disadvantageous to the majority were admitted to management. But for all those who are closer to the interests of the majority and those who care about real democracy, Iceland history - it's a lesson. Organized majority. direct democracy.Effective implementation of the rights of the majority. People's lawmaking and national governments. Everything, without which true democracy is impossible in principle.