[stop-imf] ubilee USA Statement as G-7 Finance Ministers Gather

[Robert Weissman]

JUBILEE USA NETWORK
February 4, 2005

Statement of Jubilee USA Network as G-7 Finance Ministers Gather in London

Debt Cancellation on G-7 Agenda-"Delay is Unacceptable"

WASHINGTON - As G-7 Finance Ministers gathered for a meeting in London today
with debt cancellation for impoverished nations on their agenda, Jubilee USA
Network today issued the following statement:

"As the leaders of the world's richest nations gather this weekend in
London, Jubilee USA Network is encouraged to see that debt cancellation is
on the G-7's agenda and that leaders are considering up to 100% multilateral
debt cancellation, a longtime demand of Jubilee USA Network.

But the time for more speeches, rhetoric, and delay by the G-7 is over. We
will judge our government and the rest of the G-7 based upon the commitments
they make to support 100% multilateral debt cancellation for all
impoverished nations, without devastating conditions. More rhetoric, more
delay, or more excuses are not acceptable.

Delay is unacceptable when Africa sends $15 billion a year to wealthy
creditors. Delay is unfathomable when the poorest nations continue to spend
more on debt service payments to the IMF and World Bank than on health care
for their own people, while 3 million people will die in Africa this year
from the HIV/AIDS pandemic. Debt cancellation is not a controversial or
radical concept: it is a simple matter of life and death for millions.

As Nelson Mandela said yesterday in London, "In this new century, millions
of people in the world's poorest countries remain imprisoned, enslaved, and
in chains. They are trapped in the prison of poverty. It is time to set them
free. Overcoming poverty is not a gesture of charity. It is an act of
justice."

Debt cancellation is a critical first step to breaking the chains of
poverty. As the debts have been repaid many times over, cancellation is
fundamentally an act of justice rather than charity.

Delay is not acceptable given the terrible devastation wrought by the Asian
Tsunami. Last year, governments of Tsunami affected countries repaid $38
billion to creditors, much of which went to G-7 nations and the multilateral
financial institutions they control. The $6 billion in international aid
pledged to address to disaster pales in comparison the amount these nations
are making in debt payments. The moratorium proposed by the G-7 is wholly
insufficient - is only temporary and does not even include payments to the
IMF and World Bank. Jubilee USA Network supports calls by civil society in
Tsunami and other disaster affected nations for full debt cancellation.

The response of the IMF and World Bank to the crisis of poor country debt to
date - the Heavily Indebted Poor Countries (HIPC) -- has failed to provide
the exit to the debt crisis it promised and should be abandoned.  Countries
have barely reduced their debt service payments through this program. It is
time for a bold new approach.

In the past weeks and months, a diverse array of people and organizations
have lined up to demand action on 100% cancellation. In the US, 70 Members
of Congress joined Jubilee USA Network, the US Catholic Conference of
Bishops, InterAction, and leading charities like CARE, Save the Children,
and World Vision to demand action this weekend. Calls elsewhere in the world
for action by Nelson Mandela, the African Union, Bono, and the Pope have
amplified the voices of social movements and campaigners around the world
that have been demanding freedom from debt domination for decades.

Jubilee USA Network will evaluate whatever announcement emerges from this
weekend's talks on the following criteria:
1. Immediate action. Delay on full debt cancellation in unacceptable and
will cost thousands of lives.
2. 100% cancellation. We call for full (100%) debt stock cancellation for
impoverished nations. Proposals put forward by the UK and Canada would not
cancel debt stock, but only relieve debt service payments for 10 years.
3. Leave no country behind. It is critical that debt cancellation apply to
all impoverished nations, not simply those that qualify for the IMF/World
Bank's HIPC Initiative. Nations affected by the Tsunami and other natural
disasters must see full cancellation.
4. No economic conditions on debt cancellation. Conditions on debt relief by
the IMF/World Bank have devastated nations' economies. Debt cancellation
must come without externally imposed conditions on impoverished nations.
Civil society in impoverished nations must be empowered to ensure
accountability in the use of funds released by debt cancellation.
5. IMF/World Bank: Pay Your Fair Share. The IMF can sell gold and raise more
than $30 billion to finance cancellation of IMF and World Bank debt. The
World Bank can mobilize at least $17 billion in accumulated and future
profits for debt cancellation. These are compromise approaches to financing
cancellation that G-7 nations should support.

Above all, we will judge the G-7 based on their deeds rather than their
words. To our own government we say: You must return to the US with a deal
for full multilateral debt cancellation. We have been encouraged by your
rhetorical support of debt cancellation, but without negotiation and
commitment, words mean nothing to the thousands who die each month because
resources are flowing out of their countries in illegitimate debt payments.

Jubilee USA Network also notes that any announcement on multilateral debt
cancellation for impoverished nations that emerges from the G-7 would be
only the first step - an important first step - on a much longer journey
towards freedom from debt. The discussion in the G-7 now only applies to a
very particular type of debt (multilateral) for the very poorest nations.
Debt cancellation and freedom from debt domination is urgent for nations
across the global South for many types of debts. Our work will continue and
draw attention to these issues regardless of the outcome of this weekend's
meeting.
###

Neil Watkins
National Coordinator
Jubilee USA Network
(202) 783-0129
www.jubileeusa.org