[stop-imf] Jubilee Countdown Update: Kerry, Sachs, Negotiations

[robert weissman]

From: Marie Clarke Brill <marie@jubileeusa.org>


Greetings, Jubilee USA!  There is a very important update on the
negotiations in the Countdown to Freedom from Debt today. Also included
in this update is a new position on the issue from Democratic
Presidential candidate John Kerry and an excerpt on debt from his speech
today in Philadelphia. See also a press release from Rep. Charles
Rangel=92s office about a bi-partisan congressional letter that many of
you helped to generate signatures. Finally we include a Jubilee press
release with highlights of Professor Jeff Sachs=92s comments to the press
yesterday on debt.

1.)Update and Reason #7 you should come out for debt cancellation on
October 1st
2.)John Kerry on Debt
3.)Congressman Charles B. Rangel letter of support for debt cancellation
4.) Press Release and Transcript: Sachs Says Cancel It All!
---------------------------
1.) Update on negotiations and Reason #7 you should come out for debt
cancellation on October 1st!

As news reports have been emerging and through conversations with some
of the key actors in the negotiations among the G7 on debt, it has
become clear that the negotiations are becoming more complicated. There
is danger of a delay in a united consensus for 100% debt cancellation.
It has now become even more important for Jubilee USA Network, and all
who desire to see complete debt cancellation achieved for the most
impoverished nations, to raise our voices in the upcoming week. The G7
has the power to make this 100% debt cancellation proposal a reality, or
to scuttle the deal for political reasons. The rally that we plan to
hold on October 1st at noon in front of the G7 meeting has become even
more strategic, not only to celebrate or react to the G7 announcement
but more importantly to influence the negotiations that will be
happening that afternoon and possibly over the next several months. We
may need to raise the stakes for a deal by year=92s end. The pressure is
on, and coming from all directions as you will read in the Kerry
statement, the Rangel letter and in economist Professor Jeff Sachs
statements. We need you to help us to put the pressure on the G7 to put
aside political opportunism and complete the 100% debt deal now. Please
come out for debt during cancellation on October 1st at noon in front of
the G-7finance ministers meeting.  Location TBA (We should know for sure
Monday or Tuesday!)
------------------------------------------------
2.) John Kerry on Debt
The following is an excerpt, as delivered, from a speech delivered at
Temple University in PA.

=93The world's poorest country is suffering under crushing debt burdens
need particular attention. As president I'm going to lead the
international community to cancel the debt of the most vulnerable
nations in return for them living up to goals of social and economic
progress. My friends, we will win when we work with our allies to enable
children in poor countries to be able to get a basic education.=94

Kerry then released to the press a more comprehensive set of policy
positions. The following is the section on debt:

Cancel the Debt of the World=92s Poorest Countries.  John Kerry supports
wiping clean the debts of the world=92s most heavily indebted poor
countries (HIPC) that are reforming their economies and investing in
their human capital. Debt relief will give them a fresh start to invest
in health, education, and infrastructure.  And Kerry will direct his
Secretary of the Treasury to initiate negotiations with the Paris Club
of Official Creditors, the World Bank, the IMF, and others with the goal
of modifying the Enhanced Heavily Indebted Poor Countries Initiative to
provide substantially greater debt reduction to a broader set of poor
countries. Kerry understands that debt cancellation should not come at
the expense of future foreign aid flows to poor countries.

-------------------------------------------

3.) Congressman Charles B. Rangel letter of bi-partisan support for debt
cancellation.

DEMS AND REPUBS TO BUSH: CANCEL DEBTS AT OCTOBER MEETINGS

Bipartisan Letter Urges President To Cancel Poor Countries'
Deadly Debts

WASHINGTON - Rep. Charles Rangel (D-NY) joined Rep. James A. Leach (R-IA),
Barney Frank (D-MA), Rep. Spencer Bachus (R-AL), and other members of
Congress in a bipartisan letter to President Bush today, urging the
President to call for 100% debt cancellation for poor countries at the
October World Bank and International Monetary Fund meetings.

"Debt is literally choking poor countries around the world.  Countries are
spending 30-40 percent of their budgets paying back debts, more than they'r=
e
spending on health and education combined.  And the people didn't incur
these debts; they were charged up by corrupt dictators and Cold War lending
from rich countries.  The President is calling for Iraq's $120 billion debt
to be cancelled, but we can't seem to secure cancellation for the $90
billion in debts spread across the entire continent of Africa," Congressman
Charles Rangel (D-NY) said.

Congressman Frank, a leading debt relief advocate, noted that programs like
the World Bank's Heavily Indebted Poor Country (HIPC) initiative have been
successful, but don't go far enough.

"We know two things: first, debt relief can work: when countries are
extended even moderate relief, they are able to keep the money saved at hom=
e
to fight poverty and disease.  Second, the relief these countries have
gotten so far isn't enough. If these debts are not cancelled, millions more
will die as a direct result," Congressman Frank said.

According to Congressman Rangel, the October 2-3, 2004 meetings are an
opportunity that cannot be wasted.

"The President needs to do his part and get serious about debt cancellation
at the October meetings. We can't let this problem go on any longer; poor
people in these countries didn't charge up these debts, but they're paying
for them=97with their lives," Congressman Rangel added.
------------------------------------------
4.) The following press release includes some of the comments made by
Professor Jeffery Sachs during a media conference call sponsored by
Jubilee USA Network and Health Gap. To see the full transcript, visit:
www.healthgap.org/transcript.doc.



JUBILEE USA NETWORK



FOR IMMEDIATE RELEASE - SEPTEMBER 24, 2004



CONTACT: Neil Watkins, 202-783-0129/ mobile 202-421-1023



JEFFREY SACHS: =91These are countries that are broke. Charging them debt
is killing their people=92



Sachs joins Zambian civil society, Health GAP, Jubilee USA to call for
urgent bold action for full debt cancellation



WASHINGTON - As G-7 Finance Ministers prepare to meet in one week in
Washington, DC at the time of the World Bank/IMF World Bank meetings,
Professor Jeffery Sachs, Director of the Earth Institute and Adviser to
the United Nations, called Thursday for full debt cancellation for
impoverished countries without delay. Sachs made the comments on a
conference call for reporters and was joined by Father Pete Henriot of
the Jesuit Center for Theological Reflection in Zambia, Marie Clarke of
Jubilee USA Network, and Sharonann Lynch of Health GAP.  Excerpts from
Jeffrey Sachs=92 comments on the call are listed below.



To see the full transcript, visit: www.healthgap.org/transcript.doc.



On the debt crisis:

=93 The world=92s poorest countries have been bled for years to repay debts
that they cannot afford to repay except at the cost, literally, of
millions of lives lost because of the -- lack of access to even the most
basic health services.  What=92s been happening for years in the poorest
countries is that money that should be invested in health care, whether
it=92s AIDS, whether it=92s bed nets to fight malaria, whether it=92s basic
antibiotics and immunizations, has been funnelled off to repay debts. =93



On the feasability of 100% debt cancellation:

=93The step of a 100 percent cancellation of the debt is a common sense
step that has been widely recognized right across the political spectrum
for years.=94



On the importance of cancelling debt, then financing aid:

=93One thing at a time:  Let=92s cancel the debt because it=92s a necessary
step. Cancel the debt, don=92t solve the general development assistance
issues in the next week or two, but do expect that by the time the G8
summit comes next July, we=92re talking about moving annual development
flows up by doubling essentially another 70 billion a year or so during
the coming decade.=94



On the concern that the World Bank needs debt service to help poor
countries:

=93I think that it is a wrong concern.  It=92s wrong for two reasons.  One,
if the World Bank thinks it=92s actually doing any good, collecting money
from Malawi so that it can re-lend money to Malawi, then it=92s
misunderstood.=94



=93I think the European supporters of the World Bank also should just face
the reality of this proposition.  These are countries that are broke.
Charging them debt is killing their people.  Asking them to repay the
debt so that the World Bank can lend them the same money or lend some
other impoverished country their money makes no sense.  The only thing
that makes sense is the net transfer of resources from rich to poor
countries, not the transfer of resources from impoverished countries to
other impoverished countries.  And I will be the first to be standing up
everyday as I=92ve already been doing, to say we=92ve got to get much more
money into IDA, vastly more than these little reflows that are coming
right now anyway, which shouldn=92t even be counted as net aid because
you=92re taking away from one hand, giving it back to the other and
calling that aid.=94



On conditionality and structural adjustment:

=93The whole structural adjustment era which started in the early 1980s
and has basically continued until very recently and now has changed
rhetorically, but has not yet changed in practice was an imposition of
the donor countries which told the Bank and the Fund, look...basically,
your job is to squeeze poor countries so that they get their budgets
balanced, even though we=92re not giving them very much help, and if that
means squeezing their social sectors so that they=92re spending $3 or $4
per person per year for health or they can=92t afford to treat people with
AIDS, well, so be it. That has been the deep essence of the last 20
years, which is the rich countries have not followed through on
longstanding promises to provide financial help to the poorest countries
so that they could escape the trap of extreme poverty and disease and
hunger.=94

###



*****************************************
Marie Clarke Brill
National Coordinator
Jubilee USA Network
222 East Capitol Street, NE
Washington, DC 20003
(202) 783-0215
(202) 546-4468 - fax
marie@j2000usa.org
www.jubileeusa.org