Source:
Fundación Jubileo
Wed Jul 19 2006
Bolivia and other Latin American highly indebted poor countries are hopefully waiting for the Inter-American Development Bank (IDB) to approve the debt cancellation, having the Special Committee of the IDB Board of Governors to discuss this issue. The Jubilee Foundation, together with international networks, is taking part in the international campaign Justice for Latin America, aiming at making the IDB to join the G8 initiative, being an important creditor of the countries within the region.
An international solidarity campaign calls upon G8 rich countries to deliver their promise.
Bolivia and other Latin American highly indebted poor countries are hopefully waiting for the Inter-American Development Bank (IDB) to approve the debt cancellation, having the Special Committee of the IDB Board of Governors convened a meeting to be held on 17 July in Washington D.C., US, to discuss this issue.
The most important antecedent for this initiative is the meeting held in June 2005, in Scotland, where the world’s eight richest countries (G8) announced an initiative for 100% debt cancellation to 18 highly indebted countries, so as to enable these countries to reach the Millennium Development Goals - mainly referred to the fight against poverty - by means of released resources.
One year on since this commitment was undertaken, Bolivia benefitted from the International Monetary Fund (IMF) and World Bank debt cancellation, which accounts in total for 36 per cent of its external debt. Something similar happens in Honduras and Nicaragua.
In view of these percentages, the commitment to cancel 100% of debts is not real, in spite of the fact that the country shows alarming poverty rates. In turn, African countries will see a debt reduction amounting to 70-90 per cent, given the fact that the African Development Bank has joined the G8 initiative.
The Jubilee Foundation (Fundación Jubileo - Bolivia), together with international networks, is taking part in the international campaign Justice for Latin America, aiming at making the IDB to join the G8 initiative, being an important creditor of the countries within the region.
The demands proposed for advocacy on the 17 July meeting are:
• Immediate cancellation of IDB debt, without conditions attached, for Latin American highly indebted poor countries, which in the case of Bolivia amounts to nearly $1.6 billion; that is to say, 35 per cent of its total debt.
• To reinstate the Fund for Special Operations (which grants loans with low interest rates and long-term maturities), either with contributions made by rich countries or with profits generated by the IDB, so that future credits are not rendered more expensive and debt service does not excessively increase.
During the first half of 2006, different activities have been carried out within the framework of the campaign in order to achieve this.
A declaration agreed and subscribed by international networks including the following has been disseminated: European Network on Debt and Development (EURODAD), Latin American Network on Debt, Development and Rights (LATINDADD), International Cooperation for Development and Solidarity (CIDSE), Instituto de Estudios Nicaragüenses and Observatory on Debt and Globalization.
Another declaration has been drawn up by Bolivian institutions and organizations, gathered in the Platform of Action against Poverty.
At the same time, representatives from our institutions participated in two IDB events in Brazil. In one of these events, documents by international and national organizations were submitted to the president of the institution, Luis Alberto Moreno.
These documents were also submitted to the Minister of Development Planning of Bolivia, in his capacity as representative before the IDB.
Organizations from Argentina and Brazil, carrying out advocacy before their governments, have also joined this effort, demanding support for Bolivia, Nicaragua, Honduras and Guyana, besides Haiti.
Another major effort is the participation of the Bolivian Episcopal Conference, demanding its peers from other countries to join the campaign, having received the support of the Episcopal Conferences of Brazil, Canada, Argentina and the United States.
Aiming at the importance of achieving IDB debt relief for Latin America, parallel events were carried out during the IMF and World Bank Spring Meetings, which had the participation of IDB executives.
For IDB debt cancellation to be materialized, social organizations and institutions call upon their national and international partners to make joint efforts, putting life before debt.
Political will is demanded from the International Cooperation, since this cancellation, in monetary terms, is not significant for rich countries; furthermore, if compared to the huge amounts allocated to the arms race.
The fight against poverty is a hard task which should not be exclusively faced by Southern countries; the support of developed countries is decisive in view of policies imposed and the unfair trade and finance rules which have widened the gaps between Northern and Southern countries.
---
See Letter of the "Justice for Latin America" campaign
This article was first published in Jubileo Magazine Nº3. See full Magazine (pdf format in Spanish language)
|
