Debt Cancellation Essential to Trade Justice & Poverty-Focused Development
Call Congress on October 9 and Join the National Jubilee Trade and Debt Day
The Jubilee Act for Responsible Lending and Expanded Debt Cancellation of 2007 (HR 2634) now has 58 cosponsors. Your action will make a difference in the daily lives of people living in countries caught in a debt trap.
1. Extreme debt burdens undermine labor and environmental standards.
2. Current conditions for debt relief promote reckless exploitation of natural resources, distorting global trade and undermining the environment.
3. Onerous conditions make developing countries weak trade partners by driving down wages and undermining domestic markets.
The Jubilee Act cancels impoverished country debt; removes harmful
economic policy conditions from the cancellation process; mandates transparency
and accountability from both governments and international financial
institutions; and establishes a framework for more responsible and transparent
lending practices in the future.
This is timely legislation.
Congress is seeking a new direction for
international trade policy. Debt cancellation should be one component of
a new, pro-active agenda on trade. Debt cancellation would help poor
countries take advantage of trade opportunities and encourage healthy, fair
economic relations between countries.
Trade and finance, often addressed as separate issues, are integrally
related. Indeed, current financial policies promoted by the World Bank
and International Monetary Fund regarding the management of impoverished
country debt may well undermine efforts to create a more just global trading
system.
Contact your Representative and Senators on
October 9!
Call the Capitol switchboard, 202-224-3121 and ask to be connected to your
Representative and Senators on October 9, and ask to speak with the staff
person who handles issues related to international debt or international trade.
The message is simple:
For Representatives just introduce yourself and say "I am calling to urge Rep.
________ to cosponsor H.R. 2634, the Jubilee Act. Passing the Jubilee Act
is an important step toward building more humane and sustainable economic
policies." You may also suggest that the Representative's office follow
up by contacting Kathleen Sengstock in Representative Waters' office or Clint
Shouppe in Representative Bachus' office (Representatives Bachus and Waters
are the lead sponsors of HR 2634).
For Senators introduce yourself and say "I am calling to urge Senator
________to introduce a Senate companion to H.R. 2634, the Jubilee Act.
Passing the Jubilee Act is an important step toward building more humane and
sustainable economic policies."
If you don't know who your representative is, go to www.house.gov and enter your zip code in the
box at the top left hand corner of the page. To find out who your
Senators are, go to www.senate.gov and
choose your state from the menu in the top right corner of the page.
If you need help figuring out who your Representative and Senators are, feel
free to contact Nathan at Jubilee: 202 546-4470 or [email protected]. For
more information about the Jubilee Act see www.jubileeusa.org.
1. Extreme debt burdens undermine labor
and environmental standards
Heavy debt burdens in impoverished countries are at odds with the Congressional
leadership's stated commitment to enhance labor and environmental protections.
As long as countries are under a stranglehold of debt, they face pressure to
attract foreign investment by any means
necessary, including looking the other way when global firms violate
labor and environmental standards. Thus, while the recent committment by
some Congressional Democrats to incorporate labor and environmental standards
into trade agreements reflects a positive shift in the debate, we need to go
much further to protect the rights of workers and the environment both here and
abroad.
2. Current conditions for debt relief
promote reckless exploitation of natural resources, distorting global trade and
undermining the environment
The economic policies that international financial institutions impose on
impoverished countries grappling with indebtedness encourage rapid expansion of
exports, typically through overexploitation of natural resources. The
result has been a glut of primary products on the international market that has
lowered prices for producers (rarely consumers). For example, the coffee
crisis in the international market several years ago was brought on by oversupply
directly related to mandated structural reform. This resulted in the loss
of employment for millions of laborers and the displacement of hundreds of
thousands of small farmers around the world. Debt cancellation would allow
developing countries to pursue more sustainable development strategies.
3. Onerous conditions make developing
countries weak trade partners by driving down wages and undermining domestic
markets
For decades, international financial institutions have mandated that heavily indebted
countries cut social service spending, eliminate subsidies for small producers
and consumers, privatize key state industries and limit the amount they pay
government employees. These conditions have diverted resources to the payment
of debts at great cost to the people. To this day, throughout the Global South,
governments routinely pay more to service debts than they expend on health care
or education. The burden of debt also means less money to buy U.S.-made
products. According to the Institute for Policy Studies, heavily indebted
countries? share of U.S.
exports dropped from 11.1% in 1980 to 7.7% in 2003.
The Cancel Debt Fast is underway, and is
producing concrete results:
- More than 10,000 individuals have already committed to fast for a day or more and to contact their Member of Congress;
- More than 50 organizations have promoted the fast on the web or via e-mail to their members;
- 30 high profile authors, religious leaders, and political leaders including four Members of Congress and 2 former African presidents have joined the fast as conveyors.
- The fast has also garnered significant press attention including coverage in the Washington Post, Religion News Service, the Christian Post, Sojourners, and more; (check out a recent op-ed in the Florida Sun-Sentinel)
- The Jubilee Act is gaining momentum in the U.S. House of Representatives where there will be a hearing on the Jubilee Act later this fall.
Help us to build on this momentum. Call today!
Thank you for your time, and let us know how your call goes. Email [email protected].
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