Blog the Debt

Vultures Feast on Liberia this Thanksgiving

By Julia Dowling

The Vultures have struck again!

Their latest prey: Liberia, a country that ranks in the bottom 15 for basic living standards.  With life expectancy at a shocking average of 45 years, the country's democratic government has been making concerted efforts to address the legacy of the civil war and crushing poverty. 

This morally reprehensible news is even more shocking in the context of Liberia’s recent victory in April, when the country reached an agreement canceling $1.2 billion of its commercial debt.  This past weekend, while Americans enjoyed their turkey and mashed potatoes, Liberia had little to be thankful for when news hit that two Vulture Funds were awarded $20 million from a 30 year old loan and that was originally only worth $6 million.  The UK Court’s settlement of $20 million represents all of Liberia’s 2008/2009 education budget and 150% of the funds allocated for health expenditures.  In total, 25% of Liberia’s poverty reduction spending will go to two Vultures located in tax havens.

The media coverage of this upsetting news includes stories from the BBC, The UK Independent, The UK Guardian, and Bloomberg.  It is clear that urgent action is needed!  To learn more go to our Stop the Vulture Culture Campaign site, and make sure to visit our Take Action Page to ask your Representative to co-sponsor the Stop VULTURE Funds Act, H.R.2932.  We need to protect poor countries from paying hedge funds the money needed to fight poverty.  Pass the Stop VULTURE Funds Act to stop this behavior once and for all.

From Georgia: Jubilee at the School of the Americas

By Hayley Hathaway

Last weekend I traveled to Columbus, Georgia for the annual School of the Americas vigil. I had been last year, and was looking forward to the great energy and spirit of the event. Unlike many protests, the vigil balances celebration and mourning, mixed with a hint of spontaneity.

For more than a decade, activists have been traveling to Fort Benning from around the country to protest the military school that trains Latin American soldiers. Many of the school’s graduates have returned to their countries to participate in coups and paramilitary efforts, including the most recent coup in Honduras. The protest has a tradition of resistance; each year people decide to “cross the line” onto the fence at the main gate, guarantying themselves arrest - and publicity. Over the years, the fence has gotten stronger and higher and the security tighter.

It's a powerful thing to be with thousands of other activists and US citizens who care so deeply about creating a more just world. On Saturday morning my compatriots and I awoke early and went to the gates of Fort Benning to set up the Jubilee USA table. I set up my registered table with Jubilee brochures, postcards, and information about the organization. My neighbors were a youth spoken word team from Atlanta on one side and a seller of Catholic books on the other. Other Jubilee friends were also tabling or in the crowd. Many of our Jubilee partners are regulars, such as the Maryknoll Office for Global Concerns, and many members of our Jubilee Congregations make the trip down.

From Geneva: A Challenge to Illegitimate Debt

By Neil Watkins

Last week, I had the opportunity to attend a meeting of the United Nations Conference on Trade and Development (UNCTAD) in Geneva about how the global economic crisis is affecting developing countries’ debt situations.

The conference brought together more than 350 participants from 100 governments, representatives of civil society like me as well as representatives from other official institutions including the IMF and World Bank.

One of the main themes of the conference was that the global economic crisis is hitting the poorest the hardest. As Musharraf Hossain Bhuiyan with the Ministry of Finance in Bangladesh pointed out, “This crisis was born in the advanced market economies but has major consequences in developing countries. Poor countries are the victims of developed countries’ mistakes.”

The crisis is also endangering some of the gains we have made as debt campaign. With markets for poor country exports down, governments have less income to pay for debts and to finance their government budgets.

As UNCTAD’s Secretary General Supachai Panitchpakdi pointed out: “Developing countries face a Hobson’s choice: Pursue debt sustainability or huge new borrowing. Both options are bad. Full debt cancellation and large increase in aid are needed instead.”

Can I Get a Witness? Faith Community Gathers to Support Climate Justice

Yesterday was a glorious day.

A sunny, bright, crisp fall day in Washington DC.

But don’t be distracted by the beautiful weather, said Rev. John McCullough, Executive Director and CEO of Church World Service. The climate change crisis is real, warned the Reverend as he spoke to a group gathered on the US Capitol’s northeast lawn for the Climate Witness and Day for People of Conscience.

Sponsored by a host of Jubilee Network Council members, including United Methodist Women, Church World Service, and the Unitarian Universalist Association, the event on this lovely day was both a practical call to action and a step in strengthening the faith community’s voice on the climate issue.

Climate change is a justice issue that affects not only our neighbors in the US, but our neighbors abroad. Citizens in the world’s most impoverished countries are the most impacted by climate change, yet has the least to due wish causing the crisis.

As people of faith, it is our duty to bear witness – and take action – to curb the devastating effects of climate change. The message of climate justice was lifted up throughout the morning by other speakers like Harriett Jane Olson, Deputy General Secretary of the United Methodist Women, and the General Secretary Rev. Dr. Michael Kinnamon of the National Council of Churches. Music from local DC residents Alicia Gill and Gordon Kent filled the crisp fall air and lifted our spirits.

The event was not just song and speech, though. The day culminated in the delivery of over 30,000 postcards to US Senators and constituent meetings with key decision makers on the need for a stronger climate change bill all leading up to the climate meetings in Copenhagen in December.
 

Trick or Treating with a Vulture Fund

By Devon Davidson

Looking for an attention-getting addition to your work to stop Vulture Funds?  The recent Jubilee Network meeting gave me an idea for a Halloween costume.  I dressed as a Vulture Fund! 

I transformed myself into a fierce vulture with a black robe with a hood.  I made a beak from construction paper and attached play money to the end.  Then I pinned a black shawl to the back by the neck and to the tip of the arms for wings.  I carried a sign that said, “I’m a Vulture Fund.  Give me a poor, indebted country to eat.”  Then I carried a handful of money to throw around.

 I’m sure you could add touches of your own to make an even more realistic and frightening vulture.  Then, at the party, I explained Vulture Funds to my friends.  But don't wait for next Halloween--use it to attract attention at a demonstration!

Tell Congress to stop what's really scary this Halloween

Click here to download Jubilee's newest Vulture Fund factsheet