Debt
Relief: Some Success for Jubilee AdvocatesDebt
Relief: Some Success for Jubilee Advocates
Jubilee 2000 USA
In November, as Congress was preparing to adjourn, the Jubilee 2000/USA Campaign saw some key successes, as well as indication of the work yet to be done.
On November 3 the Senate approved a "Sense of the Senate" resolution, as part of the Africa trade legislation. Although non-binding, the resolution expressed the sense of the Senate that the US should take action to cancel the debts of the poorest countries in the way that served to improve their economies, reduce poverty and environmental degradation, and ensure greater transparency and participation in the process. That same day, in the House, the full Banking Committee passed the "Debt Relief for Poverty Reduction Act," HR 1095. This incorporated revisions in the legislation that represented agreements worked out between bipartisan members of Congress and the Administration including the Treasury Department. HR1095 -- marks a tremendous step towards achieving the goals of a campaign which you have been a part.
Some of the most important changes included:
* 100% of all the debts owed to the US by the countries qualifying under this legislation will be canceled.
* All foreign debts owed by qualifying countries which were accrued before the G-7 summit in Cologne, in June 1999, will be considered for cancellation.
November 16, a last minute budget agreement was worked out between the Administration and Congressional leadership (mostly Rep. Dick Armey (R-TX) and Sen. Phil Gramm (R-TX) regarding this year’s debt reduction package. It greatly expanded US debt relief programs for impoverished countries and included approval for an IMF gold revaluation as well. The total amount appropriated for debt relief in this year’s foreign aid bill is $123 million.
Of this, $13 million goes to fund the Portman debt-for-tropical rainforest conservation program approved last year, and $110 million is to fund bilateral debt cancellation (debts owed just to the US) by eligible countries ($110 million was requested).
President Clinton acknowledged the efforts of the religious community on this campaign in a special Thanksgiving message on debt relief, while noting much more remains to be done. Current debt cancellation measures still don’t go deep enough and they don’t cover enough countries.
There is no money or authorizing language in the FY 2000 budget to fund a US contribution to the Heavily Indebted Poor Countries (HIPC)/Cologne Trust Fund to pay for multilateral debt cancellation (primarily this would cover debts owed to the Inter American Development Bank and the Africa Development Bank). The Administration had requested $210 million for FY2000.
Important changes have been made in the IMF and World Bank programs due to this legislation. These reforms will help ensure that freed-up funds can only be used for debt reduction for the poorest countries and that no funds can go to any other IMF program. The Women’s Division of the General Board of Global Ministries endorsed the Jubilee 2000 Campaign at the Spring Board meeting, in April, 1997.
ACTION: Urge your Senators and Representative to approve an additional $850 million over the next three years to fulfill the U.S. commitments made at the G7 Economic Summit in Cologne, Germany. Contact Jubilee 2000/USA for an Education Packet.