Governments can no longer afford to compensate the victims of earthquakes, hurricanes and tsunamis, or rebuild infrastructure. The tax revenues just aren’t there. So they’re selling insurance bonds to private investors. In an article recently published by Le Monde Diplomatique, the opening paragraphs of which we publish here, Razmig Keucheyan charts the horrendous new developments of finance capitalism.
Last November, super-typhoon Haiyan struck the Philippines, killing more than 6,000 people, damaging or destroying 1.5m homes and causing $13bn damage. Three months later, insurance brokers Munich Re and Willis Re, accompanied by representatives of the UN international strategy for disaster reduction (UNISDR), presented a new financial product to members of the Philippine senate: it was intended to make up for the supposed deficiencies of state provision against major climate-related disasters. The Philippines risk and insurance scheme for municipalities (PRISM) is a high-yield security that municipalities would offer to private investors (1), who would receive an attractive rate of interest, subsidised by the state, but would lose their investment in the event of a disaster of a given scale and severity.
To launch Set 7 in our Radical Thinkers series, we ran a competition last week to win a copy of every available book published in the series so far.
After a week of frenzied-question posting and a website crash in the face of Radical Thinkers popularity, I’m delighted to announce the winners and runners-up!