Blog the Debt

U.S. Treasury Receives 32,000 Letters for Liberia

From left, Kristin Sundell, Jubilee USA director of Advocacy and Organizing; Emira Woods, Foreign Policy In Focus co-director, IPS; Neil Watkins, Jubilee USA Network national coordinator; Gerry Flood, U.S. Conference of Catholic Bishops, Peace & Justice Office counselor; and Erin Erlenborn, ONE Campaign director of Government Affairs.

By Danielle Pals | Jubilee USA Network

Monday Oct. 29, 2007— I attended a meeting at the Treasury Department with Neil Watkins and Kristin Sundell from Jubilee USA Network, Erin Erlenborn from the ONE Campaign, Emira Woods from the Institute for Policy Studies and Gerry Flood from the U.S. Conference of Catholic Bishops.

The purpose of the meeting was to deliver thousands of letters calling for Liberia’s immediate debt cancellation from Jubilee supporters and allies to U.S. Treasury Secretary Henry Paulson and to get an update on the status of Liberia’s debt cancellation.

We met with a senior advisor from the Office of African Nations and the Deputy Assistant Secretary for Africa and the Middle East Ahmed Saaed to discuss the progress on Liberia’s debt cancellation, specifically the seemingly never-ending process of clearing the country’s $800-million arrears. 

Jubilee Act on the ONE Blog

The ONE Campaign has mobilized it's more than 2 million members to take action in support of the Jubilee Act in the House and Senate.

On Friday, the ONE Blog blogged about progress on the Jubilee Act thus far and many ONE members commented about the actions they took during the Cancel Debt Fast, and why our political leaders should use their power to cancel the debt of impoverished countries.

It's about more than poverty reduction, it's about the empowerment of civil society, the ability for a nation to educate its youth, the right for people to receive quality health care and access to medicines.

Kimberly, who posted a comment on the ONE Blog, also made not of unjust trade policies that also play a factor in driving up country debt:

I think it is important for all of us to remember that there are those who benefit tremendously from having countries in debt. Grossly unfair trade practices imposed on indebted nations pour money into the pockets of the few.

David Lobron, another ONE member, discussed the environmental impacts of debt:

Local communities in Liberia and elsewhere have known for centuries how to provide food and shelter, but heavy debt forces them to pursue policies that lead to deforestation and other environmental damage, making them even more dependent on loans in a vicious cycle.

If you have not contacted your members of Congress about the Jubilee Act in the House and Senate, please take action now!

5 New MOCs Added, 79 Co-Sponsors & Counting

Rep Eshoo, Anna G. [CA-14] - 10/25/2007
Rep Engel, Eliot L. [NY-17] - 10/25/2007
Rep Meek, Kendrick B. [FL-17] - 10/25/2007
Rep Delahunt, William D. [MA-10] - 10/25/2007
Rep Bishop, Timothy H. [NY-1] - 10/25/2007

They Support the Jubilee Act, Now Ask Them to Support Haiti

If your Member of Congress has already signed on to the Jubilee Act or is in support of it, call them back and ask them to support Haiti.

1. Find out who your Representative is by entering your zip code at www.house.gov (upper left corner).

2. Pick up the phone and call the Capitol Switchboard: 202.224.3121.

3. Ask to be connected to your Representative’s office. The receptionist will answer. Introduce yourself as a (your name) constituent from (city), (state).

4. Say some version of the following: "I am calling to urge Representative ______ to co-sponsor the Haiti debt cancellation resolution (H Res 241), if she/he has not already done so. This bill would provide immediate debt cancellation for Haiti. By canceling the debt immediately we can support Haiti in the improvement of health care, education, sanitation and other essential services and infrastructure.

I urge Representative _______ to co-sponsor this important legislation. To co-sponsor, your staff should contact Kathleen Sengstock in Rep. Maxine Waters’ office at 202.225.2201."

5. (You can stop there, or add an additional sentence about why this
issue is important to you).

6. Then thank the receptionist and say goodbye.

Background
Over half of the loans Haiti continues to pay were granted to corrupt and brutal dictators like Francois and Jean-Claude Duvalier. The Haitian people continue to pay interest on these loans of a clearly odious nature. This is money that could be used to invest in health care or education in a country where almost a quarter of children under five are chronically malnourished and only 35 percent of students are able to complete primary school.

These loans divert over $57 million per year from a country where half the people  struggle to survive on $1 a day or less. While the World Bank, International Monetary Fund and the Inter-American Development Bank have allowed Haiti to enter their debt cancellation programs they hold Haiti under the onerous framework of the HeavilyIndebted Poor Countries (HIPC) Initiative. 

In the meantime Haiti will pay $110 million to $140 million more in debt service to these institutions.

• Read the legislation and see who's co-sponsored it
• Read Jubilee USA's Haiti Factsheet
• Get your representative's contact info

Liberia Action Alert sent to 2 million ONE members

The ONE Campaign sent the Liberia Action Alert to its members, who are contacting U.S. Treasury about the urgency of Liberia's $800 million arrears. Liberia must have its arrears canceled before the country becomes eligible for debt cancellation. Check out the Liberia Action on the ONE Blog written by Josh Peck, Omodudu's blog, and Molly In Liberia. The latter blog is written by Molly Kinder, a grad student at Harvard's Kennedy School of Business who is spending a semester in Liberia interning with Liberia's Minister of Finance, Antoinette Sayeh.

Jubilee Act (S.2166) Senate Version Available Online

The Jubilee Act has been introduced in the Senate and the bill language is now available online. Read it here.

Get Plugged Into the Global Debt Movement

This is a publication that comes out every two months to summarise recent and forthcoming actions in the International Campaign on Illegitimate Debt carried out by activists across the world. It aims to publicise the actions and give opportunities for more people to get involved to challenge illegitimate debts and the structures which lead to them. The bulletin is produced by Jubilee South, Jubilee USA, Eurodad, and CADTM

Download the INTERNATIONAL ILLEGITIMATE DEBT CAMPAIGN BULLETIN

Action Alert! Lend Liberia Your Voice.

Send A Letter to U.S. Treasury Secretary Henry Paulson & Urge Him to Pressure Shareholders to Cancel Liberia's Debt

The brutal regime of Samuel Doe ran up much of Liberia's illegitimate debt, with no benefit to the people of Liberia. Today, Liberia has a $4.5 billion debt to the International Monetary Fund (IMF), World Bank and other creditors.
 
Despite the fact that Liberia has met all of the onerous requirements by the IMF, the IMF failed to take the action needed to clear the arrears and cancel Liberia's debt this weekend at the IMF/World Bank Annual Meetings. A rapid resolution of Liberia's debt problem is crucial:

• Desperately needed development assistance and external finance can be mobilized to rebuild the country's infrastructure and meet the basic needs of its population. 
• Liberia is in a delicate transition from 14 years of war to a new democracy.  Resolving the debt issue would provide a tangible sign of progress to the Liberian people, bolstering the democratically elected government. 
• The sooner the debt issue is resolved, the sooner the government's senior officials can devote their full attention to other key issues of poverty reduction, financial management, and good governance. 

IMF shareholders are currently debating who should cover the funding gap of $60 million to $90 million to cover the $800 million in arrears Liberia owes to the IMF. Meanwhile, the impoverished majority in Liberia pays the price for the IMF's inaction. The IMF is playing a blame game rather than investing the time and energy necessary to come up with the remaining cash!

The reality is that every delay amplifies this injustice. Now is the time for accountability on the part of the creditors. 

Please send a letter to U.S. Treasury Secretary Paulson. We'll deliver your letters to the U.S. Treasury Office in Washington, D.C. this week!

• Further Info on Liberia's Debt
• Liberia Country Profile
• 10/20/07 Press Release: "THE IMF IS FAILING LIBERIA"

6 More Jubilee Act Co-Sponsors Added in the House!

Rep Loebsack, David [IA-2] - 10/22/2007
Rep Snyder, Vic [AR-2] - 10/22/2007
Rep DeFazio, Peter A. [OR-4] - 10/22/2007
Rep Farr, Sam [CA-17] - 10/22/2007
Rep Walden, Greg [OR-2] - 10/22/2007
Rep Hooley, Darlene [OR-5] - 10/22/2007

Total Number of House Co-Sponsors : 74!

Catching Up: RAC Blog on Jubilee Act/Prayer Breakfast

Ben Weyl, from the Religious Action Center of Reform Judaism (RAC), blogged about last week's Prayer Breakfast on the Hill, which included the announcement of a Senate version of the Jubilee Act (S2166). If you missed the Prayer Breakfast, this is a good blog to read (in addition to the one on our blog written by Meaghan O'Neill)READ THE FULL RAC BLOG