Debt relief for poor countries

Mennonite Central Committee
Saturday, 26 August 2000

WASHINGTON -- Nineteen thousand children die each day of poverty-related illnesses in heavily indebted poor countries. Freeing poor countries from their international debt would free up money to provide essential funding for health care, education and other social services.

The East African country of Uganda has more than doubled primary-school enrollment to 5.3 million children since 1997 thanks to debt relief from European creditors.

In 1999, the Clinton Administration committed $920 million to pay down the debt of poor nations over the next few years. Congress appropriated $110 million last year and must provide $435 million this year for the initiative to remain viable. The upcoming 107th Congress will need to provide the remaining $375 million, but questions remain whether this will happen.

The U.S. initiative could provide partial relief for around 33 countries by paying off the balances of many country's debt. The Jubilee 2000 campaign says the Clinton plan does not go far enough. It is calling for the cancellation of $354 billion debt held by 52 poorer countries.

The 106th Congress has been slow to approve the needed money. We hope the new Congress will include members who are more enthusiastic about keeping its commitment to debt relief.

The new President and the 107th Congress could go further to recognize that the conditions now being placed on countries receiving debt relief are impossible to fulfill and inherently unjust.

Poor countries are required to have a track record of compliance with Structural Adjustment Programs (SAPs) designed by the International Monetary Fund and World Bank -- programs that impose economic policy changes by cutting social programs such as health and education. For example, countries are usually required to place "user fees" on formerly free services such as primary education and basic health care. But many poor families cannot afford fees, and go without basic services.

For more information, or to contact Mennonite Central Committee, see their website at: www.mcc.org