Civil Society Organizations from all continents were in New York on 29 and 30 May to attend a consultation on debt organised by UNDP. The consultation – on the theme of Avoiding the 2015 Debt Crisis - was organised in the context of the financing for development process that will conclude in Doha in early December this year. CSOs emphasised that debt continues to be a very pressing issue for human development and its resolution a vital precondition for the achievement of social justice. This report includes the full presentation by Oscar Ugarteche (UNAM - Latindadd) on the new financial architecture, and by Patricia Miranda (Jubileo Bolivia - Latindadd) on Multilateral Debt Relief Initiative Countries and debt sustainability.

Some presenters gave a perspective from their country, setting out the major development finance challenges that remain for countries that have been through the HIPC and MDRI schemes. Several strong criticisms were made – for example by Particia Miranda of Latindadd and Muytwa Sitali of Jubilee Zambia – of the World Bank and IMF debt sustainability approach, which is leaving many governments short of money for vital spending on poverty reduction. Among other difficulties is that domestic debt – a growing problem in many Southern countries – is routinely ignored, and commodity price shocks or the lack of new grant aid are not factored in properly.

Many speakers challenged the legitimacy of many creditor claims, arguing that the financial architecture, power relations and circumstances of specific deals put Southern countries at a disadvantage. Karina Saenz, member of Ecuador’s official debt audit commission (on which Eurodad also serves), outlined the process of investigating the origins, nature and impact of that country’s credits, a process that is due to finish in July.

Several speakers – including Juergen Kaiser of Eurodad member Erlassjahr.de – urged new international arrangements for impartial and transparent arbitration of contested debt claims. Oscar Ugarteche of Latindadd and the Universidad Nacional Autónoma de México went further, urging Southern governments to form stronger regional institutions as global ones were not serving them well.

* Read full coverage by Eurodad

Related Information:

* Full presentation by Oscar Ugarteche (UNAM, Latindadd - pdf format): "Towards a new regional financial architecture"

* Full presentation by Patricia Miranda (Jubileo Bolivia, Latindadd - pdf format): "Multilateral Debt Relief Initiative Countries and debt sustainability"

* The CADTM delegation to UNDP for a consultation on debt

-> On May 28, 2008, at the UN Building, New York, Jubilee South, European Network on Debt and Development, Jubilee USA Network, Maryknoll Office for Global Concerns, and the NGO Committee on Financing for Development, orghanized a briefing and discussion event on the International Debt and UN FFD Process: A Forum on Illegitimate Debt

* Read event announcement and invitation

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