A quiet revolution in Iceland

in #money8 years ago

October 23 this year in Iceland held a referendum which adopted the new Constitution. This referendum – the final chord in the struggle waged by the people of Iceland since 2008, when Icelanders suddenly found out that as a result of the financial crisis their country is a member of the European Union, among other things – in the literal sense of the word bankrupt.

Suddenly, it was because what happened after 5 years of prosperity, provided the "most effective" neoliberal economy. Based 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 gives a relatively high yield.

Indeed, the Icelandic banks have attracted many small British and Dutch investors, and everything went better than nowhere, and the economy (with the neoliberal point of view) grew, blossomed and smelled. But there was, as usual, a caveat: the more involved the investment – the faster growing and external debt of banks. In 2003 Iceland's debt was equal to 200% of GDP, and in 2007 was 900%. The global financial crisis of 2008 became "prosperous" economy of Iceland fatal blow. The three main Icelandic Bank Landbanki, Kapthing and Glitnir –burst and were nationalized, while the kroner lost 85% of its value against the Euro. And at the end of the year Iceland declared bankruptcy.

And then it's time to remember that Iceland is a democratic country. But first, the Icelanders decided to rely on a "normal" representative democracy. A few months after the collapse of the banks, Icelanders took to the streets to protest against the 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, according to the results came to power, the left coalition, which, on the one hand, immediately condemned the neoliberal economic system, but, on the other hand, immediately surrendered to the requirements of the world Bank and the European Union to repay the debts of the Icelandic banks, 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 Icelanders. Led to the quite extraordinary course of events. The idea that citizens should pay for the mistakes of private financiers, that the whole country should be laid under tribute to pay off private debts, was so unacceptable that spawned a new wave of mass protests. Which literally forced the leaders of Iceland to the side of the majority. As a result, the President Olafur Ragnar Grimsson refused to ratify the adopted by Parliament law which would make citizens of Iceland responsible for debts of the Icelandic bankers, and agreed to hold a referendum.

Followed very characteristic of the "free world" reaction "international community" – in Iceland was provided unprecedented pressure. Britain and Holland threatened – in the case of refusal of payment of debts of Icelandic banks to its citizens – the harsh economic sanctions until the complete isolation of Iceland. IMF threatened to deprive the country of any of their assistance. The British government threatened to freeze savings and current accounts of Icelanders. But Icelanders did not succumb to the pressure, and the President of Grimmson said: "We were told that if we do not accept conditions of the international community, that will become the Northern Cuba. But if we agreed, we would become Northern Haiti."

The referendum was held in March 2010 it Icelanders decided not to repay foreign creditors – the UK and the Netherlands – 93% of those who responded voted against the payment of Bank debt. The IMF immediately froze crediting. But Icelanders were unstoppable. With the support of the citizens the government initiated civil and criminal investigations against the persons responsible for the financial crisis. Interpol issued an international warrant for the arrest of the former President of the Bank Kaupthing Sigurdur Einarsson and other bankers also involved in the crash fled the country.

But that was not all. Icelanders didn't stop there – it was decided to adopt a new Constitution that would free the country from the power of international Finance and virtual money. The Icelanders wanted to write a new Constitution for yourself all together. And it was a success! The draft of the Basic law wrote 950 ordinary citizens chosen randomly (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 people. Ordinary people – fishermen, farmers, doctors, Housewives – were chosen from among 522 adults not belonging to any political party, each of which recommended that at least 30 citizens.
Then began the revision of the text of the Constitution and constitutional laws. The Council used a system of crowdsourcing access of all people to their work. Suggestions of citizens were going through "Facebook", "Twitter" and even "YouTube". Just from the friendly Icelanders received 3600 comments to the work of the Council and 370 amendments to the Constitution. Every week the Council published a new article for public comment. After two or three weeks, after suggestions from the public and experts, the Council published the final version of articles which were then discussed again. In addition, the members of the Council once a week recorded the story of his work and posted it on "YouTube" and their meetings could be viewed live on the Internet. In the end, all 25 members of the Council voted for the completion of the Basic law. "We, the people of Iceland, wish to create a just society where each of us will have an equal place at the table" – these words begins the Constitution.

Under the draft Constitution, the natural resources of the island are exclusively in public ownership. Of particular interest is the article entitled "public information and truthfulness", which obliges the government to keep open access to all working documents, if they are not a state secret. Also, the Constitution obliges the authorities to work for the benefit not only of man, but of the Earth and biosphere. A separate article provides for the rights of animals.

Innovative document was a place for a very archaic rules, excluded from most European Constitutions. So, 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 they say now, "eurosocialists". Not so much because most Icelanders leftist much due quite simply shortsighted and foolish behavior of Icelandic right: former previously in power "Progressive party" and "Independence Party" called on his supporters to boycott the elections of the constitutional Council and the work on the Constitution, and their voters did so. As a result, and in the Council itself, and in the text of the new Constitution the influence of the right and conservatives were minimum.
Thus, owing to the combined action of both objective and subjective factors, most unexpectedly master of the situation – and the constitutional Council, and among the participants of the Constitution and those voting in the referendum. And the result is so "exceeded expectations", the world's leading media eloquently silent on the outcome of the Icelandic national referendum on October 23, on which the draft Constitution approved more than 80% of Icelanders with a turnout of 66%.

Well, you understand? The cost to allow most 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 "was" the nationalization of resources, is a state secret – openness, instead of strictly representative democracy – the elements of direct democracy.

And God forbid (from the point of view of neoliberal governments around the world) example of Iceland other countries will follow. Because today those same choices and Iceland 2 years ago, available to other Nations. The people of Greece said that the privatization of the public sector is the only solution. The same is said of the Italians, Spanish and Portuguese...

What if they follow the example of the Icelanders? Scary thought... But this goes! Many of our tourists, which are impeded by cultural rest continuously striking "European pigs" (PIGS – a common designation for the four EU countries on the verge of bankruptcy: Portugal (P), Italy (I) Greece (G) Spain (S)), note that many of the banners of reason is often referred to Iceland. But these trifles news programs also do not mention – they are interested in what conditions these "pigs" graciously agreed to take the proposed loan to pay off debts of private banks burst.

That's why you didn't know anything about Icelandic referendum – the world's media pretend that nothing happened. After all, the media, as governments, as parliaments also represent the interests of the ruling class, which – in any country – Oh how disadvantageous to the majority were allowed to control.

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