In one of our meetings with Freedom from Debt Coalition (FDC) we were asked to watch a documentary entitled “Debtocracy”. The documentary is mainly about the Greek-crisis and few other countries experiencing crisis after getting loans. The term “debtocracy” is defined as the condition by which Greece found itself trapped in its debt. The documentary mentioned two factors why Greece experienced crisis, loaning and corruption. Greece’s nationalization, failure of implementing tax policies, bad economic policies, and the use of new loans to pay old debts has led Greece to economic collapse. Greek economists are currently doing a research on cancellation of debts. They believe that cancellation of debts is the best solution for their economy to recover. Ecuador was able to cancel their debts after proving that loans made in the past were illegal, and because of this Ecuador was able to save about $7 billion. FDC follows this thought of the documentary – that debt cancellation is also possible for the Philippines.
Katreena Mae T. Villanueva