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From: SEDOS Working Group on Debt
For the first time in human history we have the means to put an end to abject
poverty. The year 2005 can be the year when citizens around the world unite in
solidarity against poverty. The Global Call to Action Against Poverty is a
worldwide alliance committed to helping world leaders keep the promises of the
Millennium Declaration. It represents a coming together of hundreds of
Non-Governmental Organizations, peoples of all faiths and political beliefs to
join together to end poverty
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During
2005, there are important political events giving us unique opportunities for
people around the world to unite and speak out about the need to end global
poverty. July 2005: G8 Summit will concentrate on global poverty. |
As part of the campaign, Congregation Leader, Philip Pinto sent the following
letter on behalf of the Congregation and all those whose lives are enflamed with
the spirit of Blessed Edmund Rice.
To: G8 Heads of State
World Bank President
International Monetary Fund Manager
March 31, 2005
Dear Sir:
Our religious institute, Congregation of Christian Brothers is a member of the
SEDOS Religious Debt Coalition. Our membership numbers 1,500 professed members
and many thousands more who are lay associates and co-workers in the Edmund Rice
Network. The Congregation and Network are in Twenty-five countries in Africa,
Asia, Oceania, Europe, North and South America.
Our
members and associates serve in many of the developing countries that are
heavily burdened with an unjust debt so we know from experience the suffering
and the injustice that is brought about because of the debt.
It is now nine years since the World Bank and the IMF launched the Heavily
Indebted Poor Countries Initiative and six years since modifications were
introduced to establish the Enhanced HIPC Initiative. We are grateful that some
progress has been made and we are encouraged by the decision of the Finance
Ministers of the G7 countries to call for 100% cancellation of this unjust debt.
We continue to be concerned that this progress remains hopelessly inadequate in
relation to the need of the indebted countries. We take note particularly of the
following:
1. The amount of debt cancellation remains small in comparison to the scale of
the debt and the needs of the indebted countries. The IMF gives the figure for
the total public external debt for low-income countries as being "some
$460 billion", but the outcome of the HIPC Initiative so far is a mere $32
billion of debt service relief to be granted "over time" to the twenty-seven
countries now eligible to receive it. Debt cancellation needs to be extended
beyond the fairly arbitrary list of countries known as HIPCs to all low income
countries with excessive debt burdens.
2. Debt relief under the HIPC Initiative remains connected with economic
policies that many working with the poor in indebted countries find to be
detrimental to the poor and the long term well-being of the country.
3. The creditors and developed countries have failed to take seriously the
criticism of many from the indebted countries and from concerned NGOs that the
creditors themselves bear a great deal of responsibility for the creation of the
debt crisis and need to be held more accountable. This is particularly true for
debts that can be classified as odious debts and for debt arising from failed
development projects in which frequently the creditors or others from the
developed countries had an important decision-making role.
4. Creditors and others often speak of the lack of funds available for debt
relief or debt cancellation. However, when countries can engage in civil
conflicts and wars, and maintain massive armament purchases it is clear that
what is lacking is not funds but political will and proper priorities.
5. Much of the assistance to the countries struck by the tsunami is in the form
of loans. The Paris club has granted a moratorium on debt servicing but without
stopping the accrual of interest for that period. Both of these factors will
create a future debt crisis. The Paris Club points out that it is "necessary for
the borrower to make sure that it will be in the future in a position to repay
its debt, notably through an efficient use of the loans, in order to generate
income that will be used to repay the debt." Funds used for disaster relief do
not generate income. The assistance provided should therefore be in the form of
grants, not loans.
We therefore join with many other civil society organizations in calling not
only for "vastly more extensive debt cancellation, beginning with full (100%)
multilateral debt cancellation, without harmful conditions, for low-income
countries in 2005." We also call for the establishment of an independent
(including independence from multilateral creditors) and transparent body that
will both oversee international lending in the future and will also evaluate the
current debt crisis, making sure that it is dealt with in a way that is fair and
equitable.
We believe that we are all one family and Earth is our home. We are all entitled
to basic human rights, among them: food and water, education and health care.
The decisions that you make in your positions as Heads of State can alleviate or
add to the suffering in our world. We know that cancellation of the debt will
not solve the problem of poverty in our world today but we do believe it is a
step toward the elimination of poverty and an essential to achieving the
Millennium Development Goals.
May God fill you with wisdom and courage.
Sincerely,
Brother Joseph Philip Pinto
Congregation Leader
Congregation of Christian Brothers