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TechnoratiUnjust Debt Weighs Down Poor Nations
In April, the U.S. House showed leadership in the fight against global poverty by passing the Jubilee Act for Responsible Lending and Expanded Debt Cancellation of 2008, which would extend lifesaving debt cancellation to more poor nations around the globe.
Too many of the world's poor children needlessly starve or go without education because too many impoverished nations -- even after the laudable debt relief provided to date -- are still funneling scarce resources to multilateral banks instead of paying for needs at home.
The world community has found crushing debt to be akin to a modern-day apartheid, and has responded with debt cancellation. Shall we let the children of Africa and Asia die of curable disease, prevent them from going to school and limit their opportunities for meaningful work -- all to pay off unjust and illegitimate loans made to their forefathers?
When I think of the crisis of international debt, I think of my African neighbor, Lesotho. Many of Lesotho's people cannot afford basic nourishment. Children's wards in hospitals are filled with anxious mothers 24 hours a day, administering medicine and caring for their children as a nurse or doctor might do in my country of South Africa. They have no choice. Lesotho has only six pediatricians looking after its 800,000 children.
One-third of Lesotho's children are not in school. Meanwhile, Lesotho's debt repayments equal its entire education budget. Instead of investing in its people, health and development, Lesotho -- a nation of 2 million people with external debt of $647 million -- sends debt payments to the developed world.
Millions of the world's poorest people suffer hunger and illness as desperately needed resources flow out of their countries in the form of debt payments. Yet many countries, like Lesotho, are not eligible for debt relief because current initiatives are not based on a country's level of poverty or need.
Much of this debt originates from loans made to corrupt and oppressive regimes that did not benefit the population. As a South African, I know firsthand the injustice of this situation as our country continues to repay money that was used to sustain the apartheid system and suppress the movement for racial justice.
The Jubilee Act calls for an audit of the odious debts of countries such as South Africa so that the question of whether this money is truly "owed" can finally be addressed.
The movement to cancel debt is an ongoing moral campaign that joins religious leaders around the globe under the biblical principle of Jubilee, which says that everything belongs to God.
My own Anglican communion has long supported debt relief, calling the continued burden of debt upon the poorest people of the world "a moral scandal."
Christian evangelical organizations, including Baptist World Alliance and the Salvation Army, have called on President Bush to support the Jubilee Act. Pope Benedict XVI has called for debt cancellation for the poorest countries to be "continued and accelerated."
As the Senate now considers the Jubilee Act, it can do its part to help ensure that Africans and Asians are able to use their own resources for their own development. When success comes on expanded debt cancellation, as it did with an end to apartheid, this victory will not be ours alone but will belong to the whole world.
Desmond Tutu is archbishop emeritus of Cape Town, South Africa. This column first appeared in the Los Angeles Times.
15 Comments so far
Show AllNaomi Klein's 'Shock Doctrine' sheds an bit of light on the economical shenannigans of 'post' apartheid South Africa
AlexLawyer is 100% on target.
Anyone that donates money has sense to realize that you question what % of money, goods and so forth actually make their final destination.
Few Americans, including liberals, understand what foreign aid and loans actually are. With few exceptions, most of the disbursements end up in the hands of corrupt local elites or western businesses and consultants. Very little benefits the people. These schemes are sold to the electorate back home as ways to help the poor, but it's cynical because the politicians know well who really benefits, and that's how they want it. They're buying influence, and that's something the elites have and the poor don't. Most NGOs aren't much better, although some such as Oxfam and MSF do good work and have low overheads.
and this bush person ate cake with McCain on the day NOLA stopped. I want New Orleans rightfully restored by this, I no longer have a tidy wordsmiths use of finding proper names? for them, the Executive Branch. I know it is our responsibility to aid all but this is 1st, yet only the Quarter was rebuilt I'm hazarding a guess sumone wants a rid em of some of them there 'bad element' folks. Elderly women of color dieing in hazrdous coffins deemed fit to inhabit after all they've worked for their entire lives have been X'ed out.
"Much of this debt originates from loans made to corrupt and oppressive regimes that did not benefit the population."
Yes - corrupt regimes that follow the oppressive rules of the ciminal syndicates loaning the money. In the process, the heads of these regimes become wealthy while the citizens of their countries die from starvation and a lack of medical care.
U.S. taxpayers just paid 30 BILLION to forgive Bear Stearns debt. More important that filthy rich white men keep their fourth mansion than poor kids with brown or black skin go hungry.
Who's gonna bail us out when we have to start paying the trade defict in Euros?
Yes, why don't these countries repudiate their debts and forget about borrowing more? Bush can't have Blackwater invade them all. If their governments were too corrupt, unstable or poor to make the payments in the first place, the bankers deserve what they get.
These countries should refuse to pay. These debts exist because of corrupt governments corrupted by the lenders themselves. There is no moral reason to pay back. They pay back to avoid the punishment or because the government is still corrupt and going along with the theft. There is no moral reason to accept this debt.
if we took the generation of credit away from the federal reserve, we would be a long way towards ending our slavery to the big banks.
Haiti was forced to repay France for the liberation of its people. The US has repeatedly interfered, invaded and supported the Duvaliers among others. US Marines conducted a coup against the democratically elected government and leader President Aristide. And supported releasing the corrupt thugs who were in Haitian jails.
Someone steals your credit card then the banks strong arm you to pay the illegitimate debts. That's with the full knowledge, participation of the banks and governments supporting the money laundering and arming the thugs who brutalize their own people. With the support of foreign governments like the US and Britain.
The banks are conspirators and/or accessories to crimes agaisnt humanity.
The war in Iraq is costing the US $12 billion/month.
That's about $16.5 million/hour.
Lesotho's debt of $647 million could be cancelled if we stopped paying for 40 HOURS of the war.
The US debt of $8.5 TRILLION is over 13,000 times greater. How does Lesotho's debt compare to other struggling countries?
How many millions of people are being kept hungry and in poverty at the cost of a few weeks or days of this war?
I believe Haiti is an example. The World Bank gave Haiti a development loan, but the government just doled it out as if it was a grant. The money attracted cheap staples from the US (subsidized?)which undersold local Haitian farmers, driving them out of business. Now Haiti has no food, no farmers and the World Bank wants its money back.
I'm not sure I have the details right, but the gist is the loan had the opposite effect to what was intended. If that is a typical scenario, then these debts are the result of a "cluster f--k" inflicted on the third world. One vote here for debt relief.
I agree. Some would call it a "moral hazard" to allow debt relief. The theory is that it will just encourage them to do more of it in the future.
I would call it an Immoral Hazard if we do not. These poor people will never see the light of day if they continue to be oppressed.
While we are at it, we should make sure that the so called governments of these countries are cleaned up once and for all, or they never get another dime ever again.