A Fairer Way of Dealing with Debt

Dear campaigner,

Almost daily we are seeing what rich countries can do when faced with a debt crisis. Hundreds of billions of pounds have been made available in recent weeks to bail out western banks whose reckless lending has been found out.

Meanwhile, the developing world is still suffering the impact of a decades-old debt crisis which has had catastrophic consequences for the people of the Global South. Like today’s crisis, the developing world debt crisis was based on reckless lending decisions and is hurting those least responsible. But unlike today’s crisis, there has been no instant bailout for the world’s poor.

Instead, it has taken years of determined campaigning to get - so far - a small but significant proportion of unpayable debts cancelled. $90 billion dropped, across 25 countries, is a substantial amount. But at least another $400 billion must be cancelled if developing countries are to recover from their own financial crisis, and meet their people’s basic needs.

Under the current international schemes this is impossible. They are too limited, and too creditor-controlled, to provide a lasting solution to the debt crisis. A new way of dealing with debt is urgently needed.

At the end of November a major UN conference in Doha will discuss how the system of global finance could work in the interest of development. It has the potential to set the agenda for international development discussions for years to come, and the Department for International Development is deciding right now what the UK government will say at that meeting.

Please ask Douglas Alexander to support a new, fairer system for dealing with global debt.

Developing countries are still stuck in the debt trap because the odds remain stacked against them. The route to debt cancellation is governed by the same wealthy, powerful countries that made the loans and seek their repayment.

So despite the fact that their often-reckless lending behaviour was responsible for much of the spiraling debts of poor countries, lenders are not accountable to anyone, and there is no penalty imposed on them for lending carelessly.

Today the interconnections of the global financial system - and the consequences of unregulated and reckless lending - are more evident than ever before. It’s time for even a fraction of the political will given to bailing out private banks to be put towards lifting hundreds of millions of people out of poverty.

Please take action now.

Thank you very much for all your support,

Jubilee Debt Campaign

ps. If you want to read more about the need for a new way of dealing with debt, download our new short briefing here: www.jubileedebtcampaign.org.uk/newway