Blog the Debt

And...Discussion of the Jubilee Act Continues

Testimony of Nancy Birdsall, president of Center For Global Development (CGD), is explained on the CGD Blog.
Debt Relief No Panacea, Birdsall Tells Senate Foreign Relations Committee
CGD President Nancy Birdsall praised the intent of new legislation (S. 2166) to expand debt relief to additional poor countries, but cautioned against the bill in its current form last week at a Senate Foreign Relations Committee hearing. She urged the U.S. to first pay nearly $900 million in arrears to the multilateral development banks and consider other mechanisms to help poor countries protect themselves from external shocks, including natural disasters and sudden increases in food, oil or other commodity prices. READ FULL ARTICLE HERE

Neil Watkins, Jubilee USA Network National Coordinator, responds to the CGD post in the comments section.
I couldn’t agree more than debt relief is “no panacea” to global poverty. In fact, none of the witnesses at the April 24th hearing at which Nancy Birdsall testified, nor any staff or leaders of Jubilee USA Network, the debt cancellation advocacy organization I lead, would claim such a thing.

The more relevant question is: would additional debt cancellation be helpful and complementary to other strategies in the fight against global poverty? To this, the answer seems to be a resounding “yes.” READ FULL COMMENT HERE. Scroll down to the bottom of the first blog to read Neil's response.

Jubilee Act Debate: 'Tough Love' is Just Bad Policy

After the Jubilee Act passed, a number of groups have been speaking out in support of and against the Jubilee Act, legislation that would cancel the debts of 24 countries and secure the benefits of debt cancellation of 46 countries. Some people don't agree with that notion. But, especially when one disagrees, it helps to be informed.

In a Washington Times Op-ed written on Monday, American University Economics Professor George Ayittey and Africa Fighting Malaria President Richard Tren, both men fault the Jubilee Act for rewarding corrupt regimes at the expense of American taxpayers. They also call the legislation "sweeping and broad," without really outlining what parts are lean toward such generalities.

Jubilee USA National Coordinator Neil Watkins and Policy Fellow Daniel Pals respond to the editorial bya sking the two to read the Jubilee Act, which specifically outlines the criteria for countries to be granted debt cancellation, some of these specific requirements are free and fair elections, public financial management, the majority of a country's budget cannot be used for military expenditures (which is currently where most of the U.S. budget is going toward).

('JUBILEE ACT IS TOUGH' continued below 'TOUGH LOVE NEEDED' after jump)

Food Crisis in Haiti Continues

In Haiti, people are starving because of the increasingly rising food crisis. Jacqueline Charles and Pablo Bachelet of The Miami Herald discuss the current conditions. As world leaders find ways to reduce the crisis, Neil Watkins of Jubilee USA stresses that the cancellation of its debt payments may help ease these challenges.

OAS leader outlines recovery plan for Haiti food crisis
By JACQUELINE CHARLES AND PABLO BACHELET

(AP) -- The secretary-general of the Organization of American States says Haiti should expand its agricultural base and resume production of rice and other items to help resolve a deep food crisis.

José Miguel Insulza says rising world food prices present an opportunity for the poor Caribbean nation to increase crop production for local consumption and foreign markets.

The OAS said in a statement that Insulza visited Haiti briefly on Friday. He and leaders from several countries offered proposals on how Haiti can recover from the crisis.

At least seven people died in Haiti earlier this month during food riots that cost Prime Minister Jacques Edouard Alexis his job.

Spinning the IMF: Losing Influence or Gaining Power?

OP-ED in the LA Times
The IMF's dwindling fortunes
Thanks to disasters of its own making, the agency is losing money and influence.
By Mark Weisbrot | Center for Economic and Policy Research
April 27, 2008

'The IMF is back," declared the International Monetary Fund's managing director, Dominique Strauss-Kahn, at its annual spring meeting earlier this month in Washington. And not a moment too soon either. To hear the organization's economists tell it (as they mingled in five-star hotels, long black limos and posh restaurants with bankers, businessmen and finance ministers from around the globe), they've arrived on the scene just in time to help solve the world's financial crisis.

But despite the bravado, the reality is that today's IMF is not what it once was. These days, the world's most famous deficit police force is running a whopping small-country-size $400-million annual deficit of its own and is being forced into some of the same kinds of "structural adjustments" it used to impose on indebted Third World nations. In just the last four years, the IMF's total loan portfolio has shrunk from $105 billion to less than $10 billion; over half of the current portfolio consists of loans to Turkey and Pakistan. To cut costs, the agency is reducing staff and closing offices.

READ FULL ARTICLE

UPCOMING: ADB Solidarity Dialogue & Forum

English Version

Spanish Version

Perspectives on Kenya

KENYA: Big Cabinet, Bigger Challenges
By  Kwamboka Oyaro
NAIROBI - The oaths of office have been taken, and solemn pronouncements made about the ills that have dogged Kenya's past, and the way to address these in the future. Now, can the East African country's vast new coalition government move from talking the talk to walking the walk? http://www.ipsnews.net/news.asp?idnews=42051

U.S Help for PM Stuns Supporters of Kenya President Kibaki
By Peter Clottey | Voice of America
Clottey Interview With David Musila - Download (MP3) audio clip
Clottey Interview With David Musila - Listen (MP3) audio clip

Supporters of Kenya’s President Mwai Kibaki are reportedly unhappy with the direct support the United States government has extended to Prime Minister Raila Odinga’s office. This comes after the US ambassador to Kenya pledged more than 500-thousand dollars to sustain the development and smooth running of the prime minister’s office. Ambassador Michael Ranneberger reportedly said the United States government recognizes the critical role a prime minister can play in the coalition government as mandated by the constitution.

Bread For the World Blog: NM Representatives' Jubilee Act Voting Record

In New Mexico, all three of the state's representatives are running for the Senate seat vacated by the retirement of Senator Pete Domenici. The Bread For the World group in New Mexico discusses legislation and voting records of all three representatives/senate candidates on anti-poverty legislation, including the Jubilee Act:

we have more than enough information on how the three Senate candidates, Reps. Heather Wilson, Steve Pearce and Tom Udall, voted in regard to the issues that are important to Bread for the World members and anti-hunger and anti-poverty allies. Similar information is available for Sens. Pete Domenici and Jeff Bingaman.

Read Full Article Here

Read Testimony from Senate Jubilee Act Issue Hearing, then Take Action!

Companion legislation has been introduced in the Senate (S. 2166), where the bill enjoys strong bipartisan support and 26 co-sponsors. A Senate hearing on the Jubilee Act (S. 2166) was Thursday, April 24 at 2 p.m in Washington, DC.

To download documents, right-click the file and save to your computer.

• Read all testimony from the hearing in the Senate Foreign Relations.
• Senator Bob Casey (D-PA) Opening Statement
• Senator Richard Lugar (R-IN) Opening Statement (PDF)

RESOURCES FROM APRIL 24 SENATE HEARING

• Background Memo on Debt Cancellation and the Jubilee Act (PDF)
• Written Testimony of Muyatwa Sitali, Jubilee Zambia Coordinator,   submitted to the Senate Foreign Relations Committee hearing (PDF)
• Jubilee USA’s Response to U.S. Treasury’s  Position on the Jubilee Act (doc)
• UPDATED Jubilee FAQ: Cost & Financing (doc)

TAKE ACTION!
Send a Letter to the Editor (LTE) of Your Local Newspaper About the Jubilee Act. On Thursday, April 24 the Senate held an issue hearing on the Jubilee Act. Writing an LTE discussing the hearing and the impact of debt cancellation on impoverished countries sends a message to your Senators that the Jubilee Act (S 2166) is a bill that’s important to constituents in their districts and they should consider it seriously. You can send a letter in response to an article that appears in your newspaper, or link it to another related issue that is covered. Use the pre-written an (LTE) or you can write your own.

Below are current events that should provide you with a news hook to discuss the Jubilee Act:

• International donors under pressure to stave off disaster in Haiti, The Miami Herald
• Treasury official: debt relief should not be priority for developing countries, Forbes News
• The black hole of debt, The Guardian Unlimited

Watch the Jubilee Act Issue Hearing in the Senate Today at 2 p.m.

Companion legislation has been introduced in the Senate (S. 2166), where the bill enjoys strong bipartisan support and 26 co-sponsors. A Senate hearing on the Jubilee Act (S. 2166) is scheduled for Thursday, April 24 at 2 p.m. in Dirksen Senate Office Bldg, Rm. 419.

If you aren't in the Washington, D.C. area watch it live on the Senate Foreign Relations Committee website.

ORGANIZATIONAL & FAITH COMMUNITY ENDORSEMENTS

• Press Release: 'Churches, Development Advocates Praise House Passage of Legislation for Expanded International Debt Cancellation'
• Letter from Micah Challenge to President Bush (doc)
• Letter from Bishop Wenski, U.S. Conference of Catholic Bishops (PDF)
• Letter from Episcopal Church Presiding Bishop Katharine Jefferts Schori
• Jubilee Act Sign-On Letter from 50+ Organizations (PDF)

RESOURCES FROM APRIL 24 SENATE HEARING

• Background Memo on Debt Cancellation and the Jubilee Act (doc)
• Written Testimony of Muyatwa Sitali, Coordinator, Jubilee Zambia,  submitted to the hearing for the Senate Foreign Relations Committee (doc)
• Jubilee USA’s Response to U.S. Treasury’s  Position on the Jubilee Act (doc)

TAKE ACTION
Send a Letter to the Editor (LTE) of Your Local Newspaper About the Jubilee Act. On Thursday, April 24 the Senate is holding an issue hearing on the Jubilee Act. Writing an LTE discussing the hearing and the impact of debt cancellation on impoverished countries sends a message to your Senators that the Jubilee Act (S 2166) is a bill that’s important to constituents in their districts and they should consider it seriously. You can send a letter in response to an article that appears in your newspaper, or link it to another related issue that is covered. Use the pre-written an (LTE) or you can write your own!

MORE INFO

• Resources & More Information About the Jubilee Act
• Link to Jubilee Act Press Hits

The Globalization of Hope

2008 Ohio Speaking Tour, originally uploaded by jubileeusaoutreach.

During the Jubilee's Ohio Speaking Tour Wahu Kaara talks about the need for people to speak truth to power. It's not just Africa that has challenges, but also the U.S. She said people in the U.S. need to stand up to the government and be vocal about how their policies are harming Africa. Photo taken by Mike, April 15, 2008.

Post By Brian Swarts | Jubilee USA Network

Wahu Kaara is part preacher, part politician and all fiery prophet for global justice. 

As the leader of the Kenyan Debt Relief Network (KENDREN) and a two-time presidential candidate, Wahu has dedicated her life to advocating for the most impoverished and marginalized communities of her country. She knows first-hand the injustice of debt, but also the power of people organizing for change.  It this power for change that Wahu called "the globalization of hope," during her 3-day speaking tour of Columbus, Ohio. She told audiences that the time has come to speak truth to power; that world leaders must be held accountable for the suffering and injustice that has been perpetuated by economic policies and political structures that short-change the poor while enriching the elite. 

Few things have hurt the most impoverished countries of the world more than unjust debt burdens, so Wahu passionately called on everyone to speak out and proclaim jubilee. She challenged people to support the Jubilee Act -- to send a message to Congress and to President Bush that it's time to "Measure Up!" and deliver the debt cancellation that has been promised repeatedly by world leaders. Whether she was talking to church-goers, college students or community leaders, Wahu's word were met with an enthusiastic response. And it is because of the tireless work of advocates like Wahu Kaara that the Jubilee Act successfully passed the House of Representatives the day after our tour ended. 

The globalization of hope is, indeed, becoming a reality.