JUBILEE DEBT CAMPAIGN
13 May 2008 MEDIA RELEASE
10 YEARS ON: THE DEBT CRISIS IS FAR FROM OVER
New report claims developing world still gives $5 in debt repayments to the rich world for every $1 they get back in aid.
In a report [1] released today debt campaigners call on G8 leaders to end the debt crisis, which is still bringing death and misery to millions of people in the world’s poorest countries. On the 10th anniversary of the G8 summit in Birmingham, which saw a human chain of 70,000 people surround the G8 summit and propel poor country debt onto the international agenda, a Jubilee Debt Campaign [2] report, Unfinished Business, claims that despite the commitments made, only $88 billion of debt has actually been cancelled [3]. At least $400 billion more is needed if the world’s poorest countries are to combat the challenge of global poverty. claims that despite the commitments made, only $88 billion of debt has actually been cancelled [3]. At least $400 billion more is needed if the world’s poorest countries are to combat the challenge of global poverty.
The report also condemns the rich world’s refusal to cancel ‘odious’ debt – debts run up by corrupt or dictatorial regimes still being paid back by the people they oppressed. Around $500 billion of the total developing world debt stock of $2.7 trillion has been estimated to be ‘odious’, run up when the rich world lent money to regimes like those of Mobutu in Zaire, Marcos in the Philippines, Suharto in Indonesia and apartheid South Africa [4].
The report calls for an end to the imposition of economic conditions on debt cancellation initiatives, especially drastic reductions in social spending and privatisation of public sector providers. It cites Haiti as a country currently being denied full debt cancellation because of the arduous, undemocratic conditions it has to meet, while the people of Haiti take to the streets in protest at the current food prices crisis.
The report will be launched at Journey to Justice, an event called to celebrate the 10th anniversary of the Birmingham human chain, which will take place on Sunday 18 May [5] featuring speakers from around the world and messages of solidarity from Gordon Brown, Ellen Johnson Sirleaf (President of Liberia) and Archbishop Desmond Tutu. , an event called to celebrate the 10 anniversary of the Birmingham human chain, which will take place on Sunday 18 May [5] featuring speakers from around the world and messages of solidarity from Gordon Brown, Ellen Johnson Sirleaf (President of Liberia) and Archbishop Desmond Tutu.
Nick Dearden, Director of Jubilee Debt Campaign, said: ”We know that debt cancellation is one of the most effective ways of reducing poverty in the developing world – debts cancelled to date have transformed the lives of millions of people. So it is a shocking indictment of the rich world’s commitment to fight global poverty that in 2008 the poorest countries in the world are still paying us more in debt and interest payments than we are giving in aid. It is time the world’s leaders fulfilled their promises and cancelled all unpayable and illegitimate debt.”
Lidy Nacpil, a Southern activist who will speak at the conference, said: “The debt problem continues to rob the people and countries of the South of our rights to health, education, housing, water and other essential goods and services, our livelihoods, our independence and political autonomy. It is also increasingly clear to many that the realities of debt domination still lie in the centre of the global imbalances of wealth, power and consumption.”
ENDS
Jubilee Debt Campaign spokespeople available for interview, analysis and comment:
- Nick Dearden 07932 335 464
Interviews can be arranged with:
Lidy Nacpil, Jubilee South
Lidy is a Southern activist representing campaigners in those countries affected by debt. Many countries have described debt as akin to slavery – a mechanism by which developing countries are kept enslaved by the rich world and financial institutions like the IMF.
Given Lubinda, Zambian MP
Given has been a member of parliament in Zambia for 6 years and long-time campaigner on debt and closely associated with Jubilee Zambia.
Nick Dearden, Jubilee Debt Campaign
Nick is a policy and campaign expert on the debt issue, debt movement and its role in global poverty. He is currently Director of Jubilee Debt Campaign.
Notes to editors
[1] Jubilee Debt Campaign’s new report, Unfinished Business, examines progress and remaining challenges on global debt relief, ten years after the 70,000 strong human chain in Birmingham marked a turning point for the ability of ordinary people to powerfully influence global development policy. The report shows that while the roughly $88 billion in debt relief that has been delivered thus far has been extremely effective in restoring basic services to the poor, far more progress is needed. From 16 May you can access the full report at www.jubileedebtcampaign.org.uk/unfinished., examines progress and remaining challenges on global debt relief, ten years after the 70,000 strong human chain in Birmingham marked a turning point for the ability of ordinary people to powerfully influence global development policy. The report shows that while the roughly $88 billion in debt relief that has been delivered thus far has been extremely effective in restoring basic services to the poor, far more progress is needed. From 16 May you can access the full report at www.jubileedebtcampaign.org.uk/unfinished.
[2] Jubilee Debt Campaign works for the cancellation of unjust and unpayable poor country debts by fair and transparent means. It is a UK coalition of over 70 national organisations (including ActionAid and Christian Aid) and 100 local groups, supported by thousands of individuals.
[4] Hanlon, Joseph. Defining Illegitimate Debt, Understanding the Issues; Norway: Norwegian Church Aid, 2002, p.49.; Norway: Norwegian Church Aid, 2002, p.49.
[5] Journey to Justice will be held on Sunday 18 May 2008 at the International Convention Centre, Birmingham. Other speakers include: Other speakers include:
Shahid Malik MP (Minister for International Development)
Kumi Naidoo (Global Call to Action Against Poverty)
Caroline Spelman MP (Chairman of the Conservative Party)
Bishop Dr Joe Aldred (Chair, Council of Black-led Churches)
Archbishop Ndungane, former Anglican Archbishop of Cape Town
With recorded messages from Gordon Brown, Ellen Johnson Sirleaf (President of Liberia) and Archbishop Desmond Tutu.
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