CAPITALISM'S ACHILLES HEEL Dirty Money and How to

354 CAPITALISM’S ACHILLES HEEL
stopped paying against my company’s purchases for three months, running
up a bill for about a quarter-million dollars. They sent me a demand
letter, and I replied with scalding words about how they, a European
multinational, were trying to take advantage of our Nigerian-American
joint venture, miserably failing to perform their obligations while we diligently
performed ours, and I claimed from them twice what they were
claiming from us.
The managing director reacted. He called me to his office and, in the
presence of his division manager and an assistant and the company’s Nigerian
lawyer and his assistant, he demanded his money. I said to the glowering
group, “All right, I’ll pay you what I owe you when you pay me what you
owe me.” After a few more words, they repaired to the adjacent board room
for discussions.
Now, for those who know Africa, I want you to appreciate the scene.
Three voluble Italians and two argumentative Yorubas are screaming at the
tops of their lungs for nearly an hour, producing more verbal violence than
I’ve ever heard, short of a couple of riots. Finally the managing director
slinks back into his office and says, “Okay, you win.” He asks me to make a
token payment as a face-saving gesture for them. I agree to about $10,000,
and we sign a paper releasing each other of mutual obligations.
The burden I laid on them, “I’ll pay you what I owe you when you pay
me what you owe me,” was indisputable and insurmountable. But the point
of this story is not that I won; the point is what happened next. After we
cleared the debts and made a fresh start, we did many times the volume of
business that we had done earlier. With mutual cooperation we both prospered,
a win-win outcome for all.
This is similar to the approach that can resolve the debt issue. It comprises
three elements: (1) balance responsibility, (2) weigh claims, and (3)
look to the future.
Balancing Responsibility
Jeffrey Sachs, an articulate spokesman for the global poor, has often suggested
that, in light of grossly inadequate debt forgiveness, developing countries
should prepare to unilaterally cancel their obligations. Jubilee 2000, the
London-based advocacy group, worked to achieve substantial relief at the