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[Emperor's Clothes]

'Everything We Wrote Comes from Official Sources'
by Michel Chossudovsky and Jared Israel (posted 11-15-2000)

Professor Kjell Magnusson, affirms that our article "Lethal Medicine":

  • "contains a number of inaccuracies - e.g., that 600 000 Yugoslavs became unemployed between January 1989 and September 1990 - and gives a wholly misleading impression of the G17 program."

The figures we quote are from the World Bank, 'Industrial Restructuring Study', Washington, 9754-YU, July 1991. (Table 2.1 p. 34). 89.500 workers lost their job in 1989, and 523,100 in the first nine months of 1990; total 614,600 workers fired.

Another World Bank document confirms that in addition to those fired, "1.5 million workers (accounting for 15-20 percent of the labour force were not [being] paid". This means that in 1990 more than 2 million workers were either unemployed or were not receiving their wages. This was the direct result of the IMF-World Bank Programme which the G17 are intent on reinstating.

Magnusson argues that we misstate the role of the G17. According to Magnusson the G17 is committed to social development objectives and has nothing to do with the IMF's deadly "structural adjustment programme". Let the G-17 speak for themselves:

"The first task of the new government will be to lay down the foundations for lasting stability...[which] implies the launching of a radical programme of structural adjustment and, most importantly, sustained political support to stabilization and economic reforms.

"Immediately after taking the office, the new government shall abolish all types of subsidies. This measure must be implemented without regrets or hesitation, since it will be difficult if not impossible to apply later, in view of the fact that in the meantime strong lobbies may appear and do their best to block such measures... This initial step in economic liberalization must be undertaken as a 'shock therapy' as its radical nature does not leave space for gradualism of any kind." ('[G-17] Program of Radical Economic Reform' ( )

IMF "shock therapy" has already been set in motion by the G17. The first step consisted in lifting price controls on basic consumer goods, fuel and services. In the last two weeks, prices have increased, as much as three times, precipitating the Yugoslav population into abysmal poverty. (1)


Footnotes and further reading...

(1) See 'Kostunica Coalition Drives Up Prices & Blames Milosevic' by Michel Chossudovsky at and 'Is Kostunica Setting Stage for a Phony Fuel-Shortage Melodrama?' by Jared Israel at

(2) 'Chossudovsky and Israel are Inaccurate and Misleading', by Kjell Magnusson at

(3) 'The International Monetary Fund And The Yugoslav Elections', by Michel Chossudovsky and Jared Israel can be read at

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