Debt Cancellation

GCAP’s position on debt is clear – it should be cancelled non-selectively and unconditionally. The non-selectivity principle is a particularly important one. Indeed, the criteria for deciding that Uganda and not Kenya gets debt relief are entirely arbitrary and illogical. Given the paltry nature of the debt relief offered at the G8 – it leaves Africa with over $200bn of debt and annual repayment obligations far exceeding the scale of the debt relief – we cannot afford to take our eyes off the debt ball. The issue of debt is not so much what we demand but whom we address with what messages. 

GCAP supports the World Debt Day (May 16, 2008) and the the tenth anniversary of Jubilee 2000’s human chain

On Friday 16 May 1998 70,000 people formed a human chain around Birmingham to demand that the G8 ‘Drop the Debt’.

On Friday 16 May 2008, World Debt Day, President Bharrat Jagdeo of Guyana will be joining many across the world in fasting in support of Jubilee Debt Campaign’s Drop the Debt Fast, urging the G8 to pick up the pace and cancel the debt of all those countries paying out money on debt repayments while being unable to meet their goals to combat poverty.

President Jagdeo says “I wholeheartedly endorse this initiative which your organisation is promoting to mark the tenth anniversary of the "Human Chain" for debt relief which took place in Birmingham in 1998.” He was in Birmingham on 16 May 1998 as a guest of Jubilee 2000, and says “I was privileged to be part of that event. The experience is permanently emblazoned in my memory. For me, Birmingham 1998 was a tremendous inspiration. I consider that particular event as a defining moment in history.” He adds “The immensely successful public advocacy for debt relief at Birmingham precipitated a chain reaction throughout the global community hastening debt relief for many highly indebted poor countries, including my own country, Guyana… We in the developing world are deeply indebted to the Jubilee Movement and to its successor organisations that have continued to insist on a more just, humane and equitable international system.”

He has promised to go without water and solid food from 8am – 8pm.

He will be joined by Archbishop Desmond Tutu, Nobel Peace Laureate and formerly Archbishop of Cape Town; His Excellency Benjamin William Mkapa, formerly President of Tanzania; Lord George Carey of Clifton, formerly Archbishop of Canterbury, and Lady Eileen Carey; Professor Chris Brink, Vice-Chancellor of Newcastle University; and Mrs Margaret Sentamu, wife of the Archbishop of York.

Those attending Journey to Justice on Sunday 18 May will see a video message from Archbishop Tutu, in which he says “We have long called for the cancellation of crippling debt. Ten years ago in Birmingham you forged a powerful link in the chain of action for change. It was a significant step on the journey to justice. But it is a journey that we must continue together.”In his letter agreeing to join the Drop the Debt Fast on Friday 16 May he said “I commend you on the tremendous effort you and your supporters continue to put into the Jubilee Debt Campaign. It is fantastic and I am deeply appreciative."

Margaret Sentamu said "This is the least I can do to help identify with the voiceless millions in Africa and the world over today."

Benjamin Mkapa addressed the Annual Conference of Jubilee Debt Campaign in 2005 when President of Tanzania. In his speech he said “I have come, first, to thank you all personally, and on behalf of our people, for what the Jubilee movement worldwide has done to ensure that poor countries like mine do not have to choose between the life of a child—dying of a preventable disease—and the servicing of an external debt that, ultimately, is not payable anyway….frankly, it is a scandal that we are forced to choose between basic health and education for our people and repaying historical debt.”

Campaigners calling for the cancellation of poor country debts began a 36-day rolling fast on 12 April, demanding debt cancellation for 36 poor countries among those which still desperately need it - ten years after the G8 promised to drop the debt.

Stephen Rand, Co Chair of Jubilee Debt Campaign, said “The rich world needs to pick up the pace as these countries are still suffering under a huge debt burden, while millions of their people live in extreme poverty.”

While fasting, people are being asked to make a chain to bring to the Journey to Justice event on 18 May in Birmingham. 1998’s human chain was an image of the chains of debt that need to be broken. A huge chain will be created in Centenary Square to demand governments pick up the pace to drop all the debt! A template chain is available at www.jubileedebtcampaign.org.uk/fast.

Those who can’t get to Birmingham are asked to send their chains to Jubilee Debt Campaign at The Grayston Centre, 28 Charles Square, London N1 6HT.

Other special events planned around the tenth anniversary of Jubilee 2000’s human chain include:

1. Journey to Justice, The ICC, Sunday 18 May 2008, 2.30-4.30pm
A powerful mix of speakers, interviews, music and film to mark ten years since the 70,000-strong G8 human chain in 1998 that will celebrate what the debt campaign has achieved so far, and demand that politicians finish the job.

2. Unfinished Business – special report published
Ten years after 70,000 campaigners put debt on to the global agenda, three years after the debt deal in response to Make Poverty History, Jubilee Debt Campaign will publish a definitive report on what has been achieved and what still needs to be done.

3. University of Birmingham Conference, 16-17 May 2008
AIDING THE POOREST: TEN YEARS ON FROM THE BIRMINGHAM G8
This academic conference has three aims: assess the impact of debt relief in poor countries; analyse problems in debt relief processes and their underlying causes; discuss reform priorities and innovations.

4. Exhibitions
The whole month of May will feature special exhibitions in Birmingham Museum and Art Gallery and Birmingham Central Library marking the tenth anniversary of the Birmingham Human Chain.

5. Special church services, Sunday morning 18 May
Many ‘Jubilee’ church services will be held across Birmingham.

6. Centenary Square public event, Sunday 18 May, 12.30-5.30pm
The Stagebus meets the Drop the Debt bus for an afternoon of music, activity, information and inspiration – ending with the mass campaign action demanding further action on debt.

GCAP demands

We call on donor Governments and International Institutions to:

• Immediately and without externally imposed conditions cancel the odious, illegitimate and unpayable debt of poor and middle income countries through a fair, democratic and transparent process to free up resources for human development. Where debt cancellation measures are inadequate or failing to enable poor countries to reach the MDGs and provide basic social services, we support collective developing country strategies for the repudiation of all odious and illegitimate debts.
• Reverse the flight of capital from poor countries and identify and repatriate stolen assets by taking action against tax havens, financial institutions, multinationals and others facilitating this resource leakage.
• Establish a fair and just world order in which International Financial Institutions (especially the World Bank, International Monetary Fund and World Trade Organisation) operate within the broad principles enshrined under UN commitments and human rights obligations to better regulate the world economy.
  

Some documents

1. How ECAs turn private risks of corporations into debt for developing countries, Export Credit DEBT briefing paper,
2. Bolivia case study: Monitoring of the Bolivian poverty Reduction Strategy (EBRP) and the HIPC initiative and their impact on the health sector – Summary
3. Bolivia case study: Monitoring of the Bolivian poverty Reduction Strategy (EBRP) and the HIPC initiative and their impact on the health sector – Full text
4. Philippines - Towards Financing the Millennium Development Goals of the Philippines
5. Philippines - Possibilities of Debt Reduction for MDG Financing, Presentation

6. The Asian Peoples’ Tribunal on Poverty and Debt - English

More links