Jubilee campaign for debt relief gains
momentum
By PATRICIA LEFEVERE
Special to the National Catholic Reporter South Orange, N.J.
At 67, Archbishop Medardo Mazombwe of Lusaka, Zambia, has already
far surpassed the average Zambian lifespan of 48 years.
Educated, ordained and made a bishop during a period when Zambia
was among the richest African nations, Mazombwe has lived to see his
countrys economy and its people decline to their desperate straits of
today.
Among complex factors behind Zambias economic collapse were
the doubling and tripling in the 1970s in the price of its chief import, oil,
and the halving at the same time in the price of its major export, copper. Such
factors set the stage for Zambias share of todays global debt
crisis.
We are slaves of debt, Mazombwe said. My country
spends more money on debt than schools, health, water and sewer combined.
Mazombwe was among more than 65 participants who came to Seton
Hall University here Oct. 22 and 23 for a meeting on the ethical dimensions of
international debt and debt relief for poor countries.
The international conference brought together major players in all
areas of the Third World debt debate. It was the culmination of nearly two
years of work, sparked by a request from Pope John Paul II to the U.S. bishops
to convene such a meeting.
The churchs Jubilee campaign for debt relief takes its theme
from Leviticus 25 -- the scriptural admonition for freeing slaves and forgiving
debts every 50 years. Newark Archbishop Theodore McCarrick recalled hearing
World Bank President James Wolfensohn suggest to a group of bankers in
September that the Jubilee year 2000 was a time for real debt relief.
McCarrick said that some of the financiers laughed at
Wolfensohns remark. The churchs task is to challenge that
laughter and turn it into commitment -- to debt relief and poverty
relief, said McCarrick, who heads the U.S. bishops International
Policy Committee.
The campaign is not a laughing matter for us or for the
millions who suffer under the burden of international debt, the bishop
said at a public lecture on the eve of the conference.
Little left for social services
In Zambia, Mazombwe said, debt service costs $200 million per
year, leaving less than $50 million to be spent on health care and much less on
education, agriculture and the environment.
As a consequence of the debt, thousands of children cannot afford
to attend school, a majority lives without sanitation or running water and 85
percent of the 9.5 million Zambians exist in absolute poverty,
Mazombwe reported.
He added, Stability and development are possible only if we
break the chains of debt.
Financial experts argue that debt forgiveness could throw global
markets into chaos and doom future lending efforts to developing nations.
Wolfensohn said the real focus of lobbying should be on the leaders of wealthy
countries, who have cut foreign aid dramatically in recent years.
Michel Camdessus, managing director of the International Monetary
Fund -- IMF -- urged the conference to maintain a twin focus -- debt
relief and poverty alleviation in its discussions.
If we exclusively stress debt relief, we might perhaps win a
battle, but we would lose the war, he said. And we are losing the
war.
Participants focused especially on the two-year-old Heavily
Indebted Poor Countries Initiative. The initiative is a joint project of the
IMF, World Bank and major creditor nations to relieve the worlds poorest
nations of the portion of their debt considered beyond their capacity to
pay.
Tale of three countries
The limits of the initiative were brought into sharp focus the
first afternoon of the conference when participants studied the debt problems
of Uganda, which has qualified for relief under the initiatives rules;
Zambia, which is struggling to do so; and Honduras, which cannot qualify under
current rules.
If the year 2000 is to be a time for new beginnings and for ending
old wrongs by removing the debt burden from the poorest nations, McCarrick and
other speakers noted the complexity of the task. Ethical choices must be made
as to whose debt is forgiven. How do we forgive debt and how do we ensure that
debt forgiveness protects the lives and dignity of the poor and vulnerable, he
asked.
Msgr. Diarmuid Martin, secretary of the Pontifical Council for
Justice and Peace, said that the church has something to learn about the way in
which ethical principles are translated into political and economic policy. To
advocate on behalf of social justice and human dignity, the church must
understand the nature of modern economics, he said.
However, it would seem that world bankers did not learn about
poverty or infant mortality in their economics courses, he said, noting that at
an IMF and World Bank gathering in Hong Kong last year, a banker was heard to
ask, Where are we? In church on Sunday?
At a meeting with journalists, Camdessus said he regretted the
kind of distinction that is sometimes implied, namely that the church is
pro-life and the banks are pro-death, protecting their creditors and
making sure they get their money back. When it comes to the global debt
crisis, we are all in the same boat, he said.
Wolfensohn said he found no real conflict between the
bank and the church on debt forgiveness. Its just a question of how
each meets that objective, said Wolfensohn, whos made three trips
to the Vatican in recent months and met with the pope.
He said that across the world 1.3 billion people live on less than
$1 a day; 3 billion live on less than $2 a day; l.3 billion have no access to
clean water; 3 billion have no access to sanitation; 2 billion have no access
to power. Wolfensohn said hes seen such conditions with his own eyes in
83 lands.
Anything the church can do to bring this to the attention of
the world helps my job, Wolfensohn said.
Along with Martin, who urged Christians to consider lifestyle
changes and to moderate their consumption habits, Wolfensohn agreed that much
of the action to alleviate world poverty has to come from people in the rich
nations.
Corruption in the Third World is another obstacle to development,
Wolfensohn said, adding that the bank was blacklisting firms that are corrupt
and reducing loans to a very low level in countries where we see rampant
corruption.
It would be utopian to think all the debt could be
canceled, he told NCR, noting that overall global debt was at $2 trillion while
that of the Heavily Indebted Poor Countries was at $215 billion.
In the Americas, the poverty of debt-burdened countries will
continue to directly affect the United States, Archbishop Oscar Andrés
Rodriguez Maradiaga of Tegucigalpa, Honduras, told NCR. When there is no
development in the South, migrants will continue flowing north ... because
its a situation of despair, he said.
Rodriguez, president of the Latin American bishops
conference, said that poor nations in Latin America must examine how to
create a culture of self-sufficiency. Microeconomic credits -- such as
small loans to women to develop cottage industries, increasing agricultural
output or improving the environment will play a key role, he said.
The Seton Hall conference, sponsored by the university, the
Pontifical Council for Justice and Peace and the U.S. Bishops Conference
was a continuation of the talks the Vatican has been conducting with the IMF
and the World Bank over the past 18 months. The invitation-only conference
featured more than 60 representatives of the World Bank, IMF, debtor nations,
creditor nations, international commercial investors and lenders, the Catholic
church, U.S. and European relief agencies, and the academic world.
Catholic News Service and Religion News Service contributed to
this report.
The Heavily Indebted Poor Countries initiative (HIPC) has home
pages both under the World Bank and the International Monetary Fund (IMF). For
additional background information, we have also added a link to One
Worlds Web site, which includes a brief description. To return to this
page, use your browsers Back button.
- World Banks HIPC
page.
www.worldbank.org/html/extdr/hipc.htm
- IMFs pages on the
initiative.
www.imf.org/external/np/hipc/hipc.htm
- IMFs pamphlet on the
initiative.
www.imf.org/external/pubs/ft/pam/pam51/contents.htm
- Brief description from One
World.
www.oneworld.org/eurodad/hipcnut.htm
National Catholic Reporter, November 13,
1998
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