February 7, 2002
The 2015 Millennium Development Goal of halving the number of people suffering extreme poverty, will not be met without total cancellation of the debts of the world's poorest and most indebted countries. This is the stark conclusion of a new study launched today, on the eve of this year's meeting of G7 finance ministers, and as Tony Blair starts a tour of African countries.
The report, written by Jubilee Research at the New Economics Foundation and jointly published with the Jubilee Debt Campaign challenges ministers' complacency on debt relief. Using widely accepted methodologies, the study concludes that at least 39 of the 42 Heavily Indebted Poor Countries, (34 of which are African), will need a complete write off of their debts, plus an increase in aid from the current level of $15bn to $46bn a year, if the poverty target is to be met.
As the study shows, recent welcome calls to increase aid flows, unless accompanied by wholesale debt cancellation for the poorest countries, will result in any new aid being squandered on debt repayments. This will leave the drive to achieve the Millennium Development Goals seriously undermined.
Author of the report Romilly Greenhill said: "Our report uses widely accepted economic models to show that the Millennium Development Goals are unattainable without total debt cancellation for the world's poorest countries. We in the Jubilee Movement are outraged by recent attempts on the part of G7 leaders to block moves to link debt relief with crucial expenditures needed to protect the human rights of millions of poor people. The continued squandering of precious resources on debt repayments is making a mockery of the international community's stated commitment to improving the lives of the poor."
Stephen Rand of Tearfund and Chair of JDC said: "The debt campaign has never been about debt cancellation as an end in itself: It is based on the hard and harsh reality that poverty cannot be significantly reduced without it. This report demonstrates that JDC will continue to press the case for debt cancellation with vigour, commitment, and on the basis of fact."
Alison Marshall of JDC founder member the World Development Movement said: "Tony Blair's number one priority for Africa must be total debt cancellation. Debt cancellation is the most efficient way of getting money to the places and people that need it most."
Henry Northover of CAFOD said: "Unless creditors are willing to go for deeper debt cancellation there is no prospect of achieving the 2015 targets for the whole of Africa. They must commit policies and resources in order to meet their rhetorical commitment."
Jubilee Research at NEF and JDC warn of serious consequences for the poor, and for global security, if the findings of the report are not heeded. They call upon G7 Finance Ministers to take radical action on debt if the promises for 2015 are to have any hope of being fulfilled.
More Information on Poverty and Development in Africa
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.
