Message-ID: <3463613a.15202690@mail.zetnet.co.uk> Date: Fri, 31 Oct 1997 22:54:46 GMT From: Alan Howes <mailto:alan.howes@ZETNET.CO.UK> Subject: Re: Poor Country Debt (was: On-line Participatory Communication To: mailto:DEVEL-L@AMERICAN.EDU
On Thu, 30 Oct 1997 06:44:14 -0800, someone emailed me - he may have meant to post to the list, but in case not I will preserve his anonymity ->Let me ask a simple question, How does forgiving people their obligation
>for borrowed money from other people who loaned it give them a good start?
>
>My experience has shown me something free is not helpful, give them a
>way to earn money to pay it back and you restore dignity.
>
>Tell me more about Jubilee 2000
Well, you did ask!
What you raise is the "moral hazard" argument, beloved by many at the IMF, plus some of the creditor countries such as Germany, Japan and, to some extent, US. But as far as I'm concerned, the more I learn about the issue, the less that objection stands - and I suspect that would go for most other fair-minded individuals too.
You have to look at where the debts came from in the first place - more from a desire on the part of western banks to get interest, than from a wish for loans on the part of the 3rd world (you all know about aggressive lending on a personal basis).
You have to appreciate we are talking (for starters) about the part of loans the debtor hasn't a hope in hell of repaying - I would go further personally, but let's take you one step at a time.
You have to look at the fact, for instance, that Africa is currently spending four times as much on loan repayments as on health - and as a result 100's of 1,000s of people are dying.
You have to consider "odious" debts - like Mandela's South Africa repaying the money borrowed by apartheid to repress the blacks, and to wage 3rd party wars in Mozambique, Angola and Namibia, or like Mozambique's incurred resisting these destabilisation attempts.
You have to look at the way the west advanced huge loans to corrupt dictators such as Mobutu, to suit it's own political ends. (Never mind the corruption as long as they appear to be anti-red.)
You have to consider the fact that countries, unlike people or companies, can't go bankrupt (let alone go for the peculiarly generous provisions of Chapter 11).
You have to look at the fact that the debtor's inability to repay the loans is often due to circumstances totally outside their control - like interest rates and commodity prices set in the West, and the West gave the debtor countries bad advice.
I could go on, but ... [You'll see I am keen on this topic.]
Oh, and IMO sensible development can only get under way once the economy is free from the distortions that debt engenders.
Jubilee 2000 is a campaign run by a UK-based, but increasingly global coalition. The founder members are mainly Christian development charities (e.g. Christian Aid), but it also includes other faiths, trades unions etc. The objective is to secure a once-and-for-all remission of unpayable debt for about 50 poor countries by the end of the year 2000. See Leviticus 25:12, and other OT Bible references, for the scriptural basis - but while I am happy with that approach personally, our campaign group here in Dunblane, Scotland aims to involve all of any faith or none.
The main focus of campaigning is raising public awareness, and lobbying politicians. For us in UK that means foreign politicos in the main - the UK government has already gone a fair way.
There's lots of stuff on Jubilee 2000 at http://www.oneworld.org/jubilee2000/ , but I'm also happy to email our Briefing on to anyone who would like - just say the word. It's a trifle long for posting to the list.
I think Sojourners and Bread for the World are two US partners in the Coalition.
-- Alan P Howes, Perthshire, FK15 9JL, Scotland mailto:alan.howes@zetnet.co.uk http://www.users.zetnet.co.uk/alanhowes/*** A debt-free start for a billion people in the world's poorest *** *** countries - Jubilee 2000, http://www.oneworld.org/jubilee2000/ ***