[stop-imf] News report on Lee/Waters bill

[Robert Weissman]

KAISER WEEKLY HIV/AIDS REPORTS
A free service of kaisernetwork.org
http://www.kaisernetwork.org/daily_reports/rep_hiv_recent_rep.cfm

THURSDAY, APRIL 26, 2001

New Bill Calls for Debt Reduction From the World Bank, IMF

California Reps. Barbara Lee (D) and Maxine Waters (D) on Tuesday
introduced a bill (HR 1567) that calls for debt relief for the world's
poorest nations.  Titled the "Debt Cancellation for HIV/AIDS Response
Act," the bill would allow the U.S. Treasury Secretary to instruct the
U.S. executive directors at the World Bank and the International Monetary
Fund to "use the voice, vote and influence of the United States" to push
debt relief efforts.  Countries eligible to receive debt relief include
all nations eligible to participate in the IMF's Heavily Indebted Poor
Countries Initiative (HIPC) and any other country "heavily affected by
HIV/AIDS."  The bill "encourag[es]" countries receiving debt relief to
spend "a significant proportion of the savings from debt cancellation" on
HIV/AIDS response efforts and "other health priorities."  Efforts to fight
HIV/AIDS should be based on "best practices," incorporating aspects such
as prevention, care, treatment and "affordable" antiretroviral drugs.
The bill suggests that the World Bank and the IMF use their reserve
accounts or net income to offset the costs of debt cancellation.  Until
debt cancellation can be enacted, the bill calls for an "immediate
moratorium" on debt service payments and interest accrual for those
countries eligible for debt relief.  In addition, the bill would allow
U.S. officials at the IMF and World Bank to "oppose and vote against" any
of the institutions' programs that charge user fees or service charges for
"primary education or primary health care, including prevention and
treatment efforts for HIV/AIDS, malaria, tuberculosis and infant, child
and maternal well-being."  The bill states that the treasury secretary
must work with other governmental agencies and nongovernmental
organizations to develop strategies that "counter corruption" in the
countries eligible for debt relief.  The bill also would require the
treasury secretary to present a report to several congressional committees
detailing "all progress in debt cancellation efforts" and the effects
these actions have had on funding for HIV/AIDS programs and projects (HR
1567 text, 4/26).

Congress Members Pledge Support

Speaking at a press conference yesterday, Lee said that debt cancellation
for poor countries hit hard by HIV/AIDS must be moved "to the forefront of
our international agenda."  Waters added, "The IMF and the World Bank have
not done their part to free impoverished nations from debt."  Noting that
the 11 countries that have already undergone debt relief have increased
spending on HIV/AIDS by $43 million, Lee said, "Debt cancellation can and
must be used to fight HIV/AIDS and alleviate poverty."  Lee stated that
the bill represents an additional component of the AIDS Marshall Plan
signed by former President Bill Clinton last year (Meredith McGroarty,
Kaiser Daily HIV/AIDS Report, 4/26).  That plan, the House version of
which (HR 3519) was co-sponsored by Lee (Kaiser Daily HIV/AIDS Report,
5/16/00), created a World Bank AIDS Trust Fund to provide grants to
nations "most drastically affected by the AIDS crisis" (Kaiser Daily
HIV/AIDS Report, 8/21/00).  The debt relief proposal crafted by Lee and
Waters has gained the support of several members of Congress, including
Reps. Bernie Sanders (I-Vt.), Eva Clayton (D-N.C.) and Sheila Jackson Lee
(D-Texas), as well as U.S. Virgin Islands Del. Donna Christian-Christensen
(D).  Sanders said, "The international financial organizations cannot turn
their backs on one of the greatest tragedies of our time" (McGroarty,
Kaiser Daily HIV/AIDS Report, 4/26).  Christian-Christensen added, "The
forced cutbacks in the very basic social services have weakened health and
education systems and undermined efforts to cope with the AIDS pandemic.
... If we are to help the people of Africa and the Caribbean to address
this epidemic we must provide them with debt cancellation with the
stipulation -- as the Lee/Waters bill provides -- that at least a portion
of the savings from debt relief be linked to programs to respond to and
address the HIV/AIDS problem" (Christian-Christensen statement, 4/25).
Lee concluded by stressing the importance of debt cancellation for poor
nations, stating, "AIDS kills and debt kills.  Together we must kill debt
to kill AIDS."

AIDS Groups Jubilant

A number of AIDS and African advocacy groups have lent their support to
the bill, including the African Services Committee, the Global AIDS
Alliance, Jubilee USA Network, the Washington Office on Africa and the
Episcopal Church of the United States (McGroarty, Kaiser Daily HIV/AIDS
Report, 4/26).  Rev. Leon Spencer, executive director of the Washington
Office on Africa, said that Lee's bill possesses a "broad vision," adding
that it "encourages," rather than "demand[s]" that countries spend a
significant portion of their savings from debt relief on HIV/AIDS.  He
said, "It is right for there to be active encouragement.  It is also right
to respect the integrity of Africa partners to set priorities in human
development without the heavy hand of a new -- albeit more thoughtful --
version of structural adjustment" (Washington Office on Africa release,
4/25).  The Global AIDS Alliance stated that it would like to see Congress
and President Bush lend their support to the bill and other debt relief
efforts.  The organization also advocated a "three-pronged campaign" to
"accelerate action" in fighting HIV/AIDS in Africa.  The campaign calls
for Bush to enact a $2.5 billion "emergency" appropriation to fight
HIV/AIDS in Africa; use the "voting power" of the United States to bring
about debt cancellation; and invest in a global bulk procurement system to
provide citizens of developing nations with cheaper AIDS drugs (GAA
release, 4/24).  Yesterday, Jubilee USA sponsored a "national call-in day"
for debt relief, urging its members to call the White House and tell Bush
to "use U.S. leverage" to bring about relief policies (Jubilee Web site,
4/26).  Meanwhile, the Health GAP Coalition, the African Services
Committee, ACT UP/New York and other AIDS advocacy groups have planned a
"massive march and rally" calling for debt relief in New York City on June
23 (Stop Global AIDS Now release, 4/25).