GLOSSARY/289the qualitative spread of the risk, since each component of risk carried
by any particular security may lead to the invention of specific
negotiable instruments of protection such as fixed-term contracts to
protect against the exchange risk, fixed-interest contracts to protect
against variation in interest rates, negotiable option markets, etc.
This proliferation of financial instruments and derivative markets
gives the international markets a casino-like air.
SILIC (SEVERELY INDEBTED LOW-INCOME COUNTRIES)
Countries with a per capita income of less than USS695 (in 1993)
and showing more than 200 per cent as a percentage ratio of debt
stock/annual export revenue.
STRUCTURAL ADJUSTMENT FACILITY (SAF) AND
ENHANCED STRUCTURAL ADJUSTMENT FACILITY (ESAF)
(FROM LENAIN 1993, p. 99)
These facilities are IMF instruments which emphasise growth, the
fight against poverty, structural reforms and foreign funding reckoned
over a period of three years. ESAF loans are greater in amount but
demand considerable structural efforts and entail stringent condi-
tionality. Countries have to be very poor to qualify for them. Created
in 198 7, the ESAF was extended and broadened in scope in February
- ESAF loans are repaid in ten six-monthly instalments, ending
ten years after the date of initial outlay, held over for five and a half
years. Their interest rate is lower than market rates. ESAF funding is
allocated to support stringent medium-term structural adjustment
plans. It is financed by more than 40 member-states of the IMF, about
half of which are developing countries (IMF document).
SURPLUS VALUE
Surplus value is the difference between the value newly produced by
labour power and that labour power's own value, that is, the
difference between the value newly produced by a worker and the
costs of reproduction of his or her labour power. Surplus value, that
is the sum total of the incomes of the propertied classes (profits +
interest + ground rent), is therefore a deduction from the social
product: it is what remains of the social product once the reproduc-