Get News & Views Updates
Most Popular This Week
Popular content
Today's Top News
Fasters Urge Congress to Cancel Poor Countries' Debts
NEW YORK - A coalition of faith-based human rights groups has launched a nationwide campaign to win congressional support for legislation that would cancel debts owed by the world's poorest nations.
The campaign kicked off with a number of well-known religious leaders and activists declaring this week that they would observe 40 days of fasting and lobbying on Capitol Hill.Starting his fast Thursday, Rev. David Duncombe of Jubilee USA, a network of more than 80 antipoverty organizations, said the campaign was aimed at securing a hearing on the debt cancellation bill, also known as the "Jubilee Act."
The Jubilee Act was introduced last month by Rep. Maxine Waters (D-CA) and Rep. Spencer Bachus (R-AL), who also sponsored a similar proposal in the last Congress.
According to campaigners, currently, indebted nations spend an average of $100 million each day simply to service their debts, an amount they could otherwise allocate for food, medicines, and education for the millions of poor in Africa, Asia, and Latin America.
The Jubilee Act would require the International Monetary Fund (IMF) to cancel all debt owed by heavily indebted poor countries and also others countries included in the IMF's debt relief program.
"All the impoverished countries deserve to have their debts canceled once and for all," says Waters. Like her, Bachus argues that debt cancellation is "the right thing to do."
"For us it's a good thing because it makes the world better," says Bachus. "It makes the world more stable. It's the right thing to do for growing democracies because the great threat, I think, to democracy and freedom is poverty."
According to Jubilee USA, the latest round of debt cancellation, approved by the Group of Eight most industrialized countries (G8) in 2005 and implemented by the IMF and World Bank in 2006 has already brought about some improvements in a number of impoverished countries in Africa and Latin America.
In Ghana, for instance, the group notes that the government has increased its funding for rural development, education, and health since its debt cancellation took effect.
There are also signs of improvement in Zambia, which has hired thousands of new teachers and is providing free medical care in rural areas, whereas in Latin America, the relatively poor nation of Honduras is now able to provide free education at the primary level.
Organizers said they anticipate more than 20,000 Americans will participate in the 40-day campaign to demand passage of the Jubilee Act.
"2007 is a Sabbath Year, a time when the Hebrew Texts and the New Testament call for an end to debt and slavery," said Anne Singer, a spokesperson for Jubilee USA, in calling for participation in the "Cancel Debt Fast."
Activists say earlier rounds of debt relief -- a result of a campaign run in 2000 and commitments made by world leaders in 2005 -- also produced meaningful results.
Citing a 2004 World Bank study, Jubilee USA says in countries that have had more access to their own resources through debt relief, poverty reduction initiatives doubled between 1999 and 2004.
According to Jubilee USA, since Tanzania received $3 billion in debt relief, it has increased funding for poverty reduction by 130 percent over the last six years. The country has eliminated fees for elementary schools and is allocating more money for education.
With debt relief savings in 2002 and 2003, Tanzania built 31,825 classrooms and the number of primary schools increased from 11,608 in 2000 to 12,689 in 2003, a net increase of 1,081 schools.
In the case of Burkina Faso, the government is spending debt relief savings on fighting AIDS, education, and access to safe water. In 2002, money freed up from debt service payments went to joint government and civil society initiatives to fight AIDS.
Debt relief has also enabled Mozambique to make strides in combating HIV/AIDS. In 2001 a national plan to fight HIV/AIDS was launched. The program is expected to slow infection rates and mitigate effects through education, prevention, support, and care.
In addition to canceling the debts of 67 of the poorest countries, the Jubilee Act would establish what Jubilee USA calls "responsible lending practices for the future." Most of today's outstanding debts result from "bad faith" lending, according to the group, which says that in many cases loans were knowingly provided to corrupt governments for political purposes.
Prominent figures joining the 40-day fast include Argentinean Nobel Laureate Adolfo Perez Esquivel; John Thomas, president of the United Church of Christ; Ron Sider, founder of Evangelicals for Social Action; and Rabbi Michael Lerner of Tikkun magazine.
© 2007 OneWorld.net
Comments
Note: Disqus 2012 is best viewed on an up to date browser. Click here for information. Instructions for how to sign up to comment can be viewed here. Our Comment Policy can be viewed here. Please follow the guidelines. Note to Readers: Spam Filter May Capture Legitimate Comments...
21 Comments so far
Show AllI was in DC in 2000 for the IMF/World Bank demonstrations. Really glad to see the torch is still being carried.
I met a professor from Ghana who explained that the World Bank loan to build a railroad would have been paid off by the sale of gold the railroad would deliver to an international port. However, the very day the gold arrived, there was a freak, unprecedented drop in the price of gold (imagine that!) and by the time the gold price climbed back up, the interest on the debt had spiraled out of control...
I read on a gold information website that the largest gold holding entity in the world is the International Monetary Fund. Of course they don't except debt payment in inflating national currencies...
HEY! how about first canceling the debts of Americans here at home who are caught up in home foreclosures due to loose lending practices.
Let's starting helping our own American citizens first.
This is the kind of 'faith based initiative' I can get behind. Finally some religious leaders who lead by example in solidarity with the largest part of their flocks.. the poorest and the meekest.
Beats the South Beach Diet and it's for a good cause. Now remember "The Shoes of the Fisherman" and act accordingly.
Cancel the debts, and be damn careful about future lending
bligh, you sound a little condescending toward the nations in debt. Cancel the debts, yes, and pay reparations. These nations were conquered, colonized, enslaved, and are still exploited under neo-colonialism. Imagine a world bank that operated as if eliminating global poverty were its actual goal. As it stands now, the World Bank and IMF are screwing the poor of Third World nations while fattening the corporate kings of all nations. We need to demand an end to global predatory lending and a beginning to reparations, and I commend these people who are fasting in this effort. Although I'm an atheist, I admire truly spiritual people who embody the work of liberation theology. AMEN!
Israel has never paid us a dime back. Might as well cancel the rest too. Kinda like being Santa to the whole world.....
We must be aware how the money is spent and it will take more than money to change.
What about the debts of the USA that cannot be forgiven? The trillions of dollars of US government bonds in Chinese hands, the continuing sufferings of the previous rape victims of the US, in Vietnam (Agent Orange still poisons the land), and the billions of mines and cluster bomblets that lie in wait for the next victims. The unnecessary nuclear bombing of Hiroshima and Nagasaki. Continuing with violence for oil.
"And forgive us our trespasses, as we forgive those who trespass against us."
"Forgive them for they know not what they do"
Its about time you started knowing.
Sounds good for the third world but will it simply open the door for vulture capitalists like Paul Singer to swoop in and pick their bones clean?
http://www.gregpalast.com/vultures-continue-to-pick-africa-clean/
I'd like to know for sure. Maybe Mr. Rivzi or another writer here on Common Dreams could address this specificaly in another article. Is the thing Singer proof or not? Will it look good until a last minute change or rider? This could be a case of "be carefull what you ask for - you just might get it".
If the world's greatest debter nation would stop borrowing money for tax cuts for their filthy rich and bombs for everyone else then we could feed, educate and heal our children too. That would require that America give up it's Crueler and Greedier Than Thou attitude.
http://www.comcat.org/english/cgi-bin/links.asp#1
Catalytic Communities is an international network of amazing breadth. Take a look and pass the word.
There's more to *loans* than meet the eye...
Check out this 'Economic Hitmen' story by a previous high-level US operative:
http://www.democracynow.org/article.pl?sid=04/11/09/1526251
Wherein ::: "John Perkins describes himself as a former economic hit man - a highly paid professional who cheated countries around the globe out of trillions of dollars.
20 years ago Perkins began writing a book with the working title, 'Conscience of an Economic Hit Men.'... "
He also details some CIA dirty tricks, like them putting a bomb in a tape recoder which then blew a plane out of the sky - carrying Omar Torrijos, (the President of Panama) who was rash enough not to kow-tow to the USA's evil scams.
Kinda scary stuff, but good Perkins been brave enough to at last come out of the closet and blow loudly on his whistle...
While were add it at canceling developing nations debts why not cancel the outrageous debts us Americans are paying on our student loans, mortgages, credit cards etc not to mention the taxes we pay to the Federal Reserve every April 15th. Ursury is disgusting both abroad and at home. Lets end ursury all together every where!
Cancel debt? They can start right at home first. Why should any of us have to pay excessive interest rates just so foreign investors can get rich? Who invented this idea?
If it were in my power, I would NOT cancel the debts, but I would remove all interest payments and let the debtors pay only the principal. I guess that makes me an insensitive oaf on these boards. I know somebody will flame me.
When it comes to what Americans owe Forextrader paying the principal is fair I agree with you. Its the outrageous interest part that isn't. My grad student loans were $37,500 for just tuition. With the interest over 20 years time they equal $58,000. I'd rather just pay the principal as this is what I really owe. Although education should be free in the wealthiest nation on earth.
dcbeltway: thanks for your thoughtful words. Indeed I enjoy reading your posts. I am paying student loans also, so I know how you feel. Education would be free for the college student if the US wasn't pouring it's money into the military and prison industrial complex. Housing a prisoner costs more than to send a youth to many colleges across the land. What's sad is that many prisoners are prisoners of the US war on drugs. Even worse, if you are convicted of a drug offense including Marijuana for heaven sakes's, you can kiss your government loan goodbye. Don't get me started. Take care.
OOOOOHHHHH, too easy. Don't you see?? All these wall Street trading firms and banks and corporations carrying massive debt are behind this magnificant obfuscation.... they will just foist most all of that debt onto those poor nations books and .......POOF.....PROBLEM SOLVED. Hell the poor nations won't bitch or ask any questions in exchange for a clean slate.......so that no repercussions, no public knowlege, no oversight, no consequences to thievery, embezzlement, mis-management of fiscal responsibility....NOT ON YOUR LIFE IS THIS A GOOD IDEA.
Whatfools, you are right on the money. DC beltway, what planet are you on? You equate your problems paying off credit card and mortgage interest with people who could never dream of owning a house or a credit card in their lives. These are people who sometimes must walk miles just for clean water and whose babies are often expected to die as infants. You had a choice to buy a house and take out a mortgage. And in case you forgot, credit and credit cards are luxury items that most people in the world never have access to. Quit complaining. You are rich.
PrestonDigitator September 9th, 2007 9:15 pm wrote, ".POOF…..PROBLEM SOLVED."
Domestic corporations big and small hide such debt all the time. E.g. shifting discretionary, capricious, and arbitrary expenditures to the "Administrative" account makes it easy to justify laying off or just underpaying support staff, i.e. secretarial, payroll, accounting staff, etc. When it appears that overhead costs are going through the roof, oops! it's "Sorry, we just can't afford to give you that raise we promised you last year based on company performance." Meanwhile, corporate officers have been living high off the hog, receiving disproportionate bonuses, company vehicles for personal use, week long "business trips" to a ski or beach or golf resort in Scotland, all expenses written off in the Administrative account. Even the costs of company parties that the administrative staff themselves probably had to organize are placed under that account heading. Little did the poor schlemiels know the last party they put together and attended would be their "going away party."
POOF! is right.