Debt cancellation task “not over”
In 1998, 70,000 people surrounded the G8 Summit in Birmingham with a ‘human chain’, demanding cancellation of the debts of the poorest countries. Ten years later they were back for ‘Journey to Justice’, celebrating one of the most successful campaigns in recent years – and demanding that the job is finished. To date the UK Government estimates that more than $100 billion in annual debt payments has now been cancelled. Cancellation can only occur when beneficiary countries have shown that they will put revenues instead into building schools, training teachers or improving healthcare. Burundi and Uganda used the money to abolish school fees, providing millions more children with school places. Tanzania doubled teacher numbers, Zambia scrapped health fees. In Mozambique no women could obtain free anti-malaria treatment – now more than a third can.
‘Journey to Justice’ saw over a thousand debt campaigners in Birmingham mark the tenth anniversary of the ‘Drop the Debt’ human chain. In the city’s Centenary Square, 20% of them knelt down to create ‘a human pie chart’ to illustrate that since 1998 20% of the debt of the world’s poorest countries has been cancelled. “We have long called for the cancellation of crippling debt,” said Archbishop Desmond Tutu addressing the event via video. “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.”
UK Prime Minister Gordon Brown agreed that the job was not yet complete. “We know there is still more to do before we can see the full benefits of debt relief, and for that we need campaigners like you to keep up pressure on governments around the world. I want to thank you for all you have done to bring us to this point today, and I urge you to continue with your efforts… you are a truly global force for change.” South Africa’s keynote speaker Archbishop Ndungane said “Together we are heading in the right direction – donor and recipient governments, civil society of north and south in partnership. Together we must find a lasting solution to the question of debt. It is the only answer.” There was also a message from the rock star Bono, who has since become a dedicated campaigner arguing for an end to poverty. He thanked the “70,000 inspiring souls” who formed the original chain, “for reintroducing the likes of me to positive activism,” adding, “No one can say that activism and aid, along with good African governance doesn’t work.” To mark the anniversary, Jubilee Debt Campaign published a new report ‘Unfinished Business’ arguing that another $400 billion of debt cancellation is needed if the world’s poorest countries are to combat the challenge of global poverty.
vulture club
The benefits of debt relief can be reduced by the actions of ‘vulture funds’ – companies which buy up the debt of poor countries and then sue for the full value of the debt plus interest. The UK is working to secure international agreement to tackle this – working with the World Bank to help poor countries buy back their commercial debts at a ‘deep’ discount through the Debt Reduction Facility (DRF). Last year the UK provided £1.8 million to assist with Nicaragua’s $1.3 billion commercial debt buy-back operation.
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debt free
- 33 countries have seen $100 billion of unpayable debt written off.
- In Tanzania $3.5 billion of debt relief has put 50% more children in primary schools, built 2,500 new schools and recruited 28,000 teachers.
- In Uganda $2 billion of debt relief has helped eliminate user fees for healthcare and doubled the use of health services in five years.
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