Global Policy Forum

Debt Relief for Mozambique

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By Andy Epstein and Loretta J. Williams

Boston Globe
March 10, 2000

We will be haunted for a long time by the specter of Mozambicans clinging for days to treetops, bridges, and rooftops while awaiting rescue. Delays in US emergency assistance, especially given the Clinton administration's professed interest in Africa, will continue to generate murmurs: Is emergency aid color-coded? But beyond that: Will the immediate aid in the wake of unprecedented precipitation generate the resources to support a sustained reconstruction?


Last year the World Bank judged Mozambique to be the world's fastest growing economy. Rebounding from a long civil war that ended seven years ago, Mozambique was able to feed itself last year for the first time in many years. Mozambique has held two multiparty elections within the last five years, both judged free and fair. Perhaps the vision of a young woman clinging for dear life - birthing a baby girl nestled among tree branches - and her subsequent rescue will become a metaphor for the next steps.

This disaster, like many others, presents an opportunity. But huge financial obstacles and inadequate resources block the path toward long-term healthy development. During the 1990s Mozambique's debt burden reached 594 percent of its GNP. Yearly payments of $57 million surpass the dollars on primary health ($20 million) and education ($32 million) combined. Thus, debt cancellation is the necessary first step.

The majority of Mozambique's bilateral debt is owed to the Paris Club creditors, primarily Italy, France, Germany, the United Kingdom, the United States, and Japan. On Feb. 29, the United Kingdom it announced it would take no more debt payments from Mozambique. British finance minister Gordon Brown declared: ''We would like other countries to follow our lead and provide 100 percent relief of the bilateral debts of Mozambique.''

The United States should do no less. It must join in total debt cancellation and encourage all creditors, including the International Monetary Fund and World Bank, to stop taking payments.

At the same time, developed nations have an obligation to respond to the mounting damages from the extreme weather associated with climate change. Extreme weather events, particularly intense precipitation, have been especially punishing for poor nations, such as Honduras, Venezuela, those in the Horn of Africa, China, and Bangladesh. Hurricane Floyd in North Carolina and the twin Christmas windstorms felling France's forests demonstrate that no nation is immune and the costs are to be borne by all.

Climate change comes from burning fossil fuels, as released carbon traps heat in the atmosphere. An overheated Indian Ocean - so warm that most of its coral has beached - fed the torrential rains and cyclones that battered southern Africa. Thousands may lie under the flood waters, while the deluge displaced hundreds of thousands, destroyed 141 schools, numerous road and bridges, and is spreading malaria, respiratory disease, dysentery, and cholera.

The disaster in Mozambique can become a turning point for public awareness of the enormous potency of climate disruption and the need for development based on alternative fuels. In the immediate future, clean energy sources are needed to pump and purify water and to power rural health centers and schools. In the long run, new energy sources can complement environmentally sound policies that preserve forests and protect coastal zones.

A new thrust for development will require funds, and these investments in new technologies will benefit manufacturing and consuming nations alike. Distributing clean energy sources in Mozambique would also provide a measure of justice, as we may look back at those experiencing this calamity as some of the first explicit victims of climate change.

President Clinton, addressing the recent National Summit on Africa, proclaimed: ''Struggling democratic governments should not have to choose between feeding and educating their children and paying interest on a debt.''

The international community must act on debt cancellation and make substantial funds available for reconstruction. To sustain growth, Mozambique must receive fair terms of trade for the goods it produces. Such new ''rules of engagement'' and financial resources are needed to help Mozambique build equitable, healthy, and sustainable development as it recovers from this tragedy.

Andy Epstein worked as a nurse in Mozambique. Loretta J. Williams is director of the Gustavus Myers Center at Boston University.


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FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.