Despite the fact that thousands die daily as a result of international debt, a leaked IMF and World Bank report shows that they will refuse to provide significantly deeper and broader debt cancellation for impoverished nations at their Annual meetings this September.
---- Jubilee USA Network ----
For Immediate Release: September 5, 2002
Leaked IMF and World Bank Report Shows Debt Relief Program Still Failing
Despite the fact that thousands die daily as a result of international debt,
a leaked IMF and World Bank report shows that they will refuse to provide
significantly deeper and broader debt cancellation for impoverished nations
at their Annual meetings this September.
The report on the Status of Implementation of the Heavily Indebted Poor
Country Initiative (HIPC) which goes to the IMF board tomorrow, shows that
their current debt relief scheme fails to meet even its stated goal of
providing “debt sustainability” for impoverished nations. They offer slight
adjustments, all of them unsustainable in themselves, which fail to address
the core problems with their flailing program.
After the Bank and Fund’s Spring 2002 report that highlighted the problems
with HIPC, Jubilee USA Network and the NGO community offered several
alternatives or enhancements to the current program. The new report
dismisses these viable alternatives in favor of the status quo. The report
even misrepresents bipartisan legislation pending in the US Congress that
proposes to deepen debt relief.
“The IMF and World Bank need to get their facts straight,” said Marie
Clarke, National Coordinator of Jubilee USA Network. “Furthermore, we know
debt cancellation works, so there is not a moment to lose as the AIDS crisis
wipes out an entire generation in Africa. To hold back now, insisting on the
same failed ideology, is nothing short of murder.”
The report acknowledges that half of the 20 countries in line for relief
will continue to face unsustainable debts at the end of the program. This is
due to the problematic nature of the debt-to-export ratios used to assess
debt sustainability as countries face external shocks and falling commodity
prices. Instead of reconsidering their arbitrary criteria for providing
debt relief, they propose a process of “topping-up” the relief at the end
only on a case-by-case basis.
The Status of Implementation report backs up claims from Jubilee groups
around the world that debt relief is providing startling benefits for the
poor. Debt relief has led to substantial increases in spending on health
and education and no documented increases in military spending. (See
attached info for more.)
“The knowledge that life-saving debt cancellation is being held-up while
creditors tinker with a failed program is enough to bring thousands of
people to the streets of Washington at the end of the month in protest,”
said Mara Vanderslice, Outreach Coordinator of Jubilee USA Network. “We will
not rest until we see 100% debt cancellation without harmful strings
attached.”
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Jubilee USA Network
Drop The Debt. Treat The People. Donate The Dollars
Original: Debt Relief Still Failing