The Jubilee Blog

Myanmar Gets $5.9 billion of Debt Cancelled

 

French Ministry for the Economy and Finance, where the Paris Club periodically meets

By: Rickard Ekstedt

On January 25, the Paris Club announced the cancellation of nearly $6 billion of Myanmar’s debt,[i]^,[ii] which amounts to over 60% of the total debt Myanmar owes to this group of western countries.[iii] Of the total amount, more than $3 billion will be cancelled by Japan alone. Officials from the Japanese government met in October with officials from the Asian Development Bank (ADB), International Monetary Fund and World Bank in Tokyo, Japan to discuss these debt relief efforts.[iv] Besides Japan, another notable country is Norway, whose government has agreed to cancel all of Myanmar’s $534 million debt owed to them.[v] Stephen Groff, vice president of ADB, hailed this as a “tipping point”[vi] for the country economically, and Myanmar Finance Minister Win Shein promised that the “resources freed up by the debt relief would be used for development projects and poverty reduction.”[vii]

Africa’s Progress and Debt: Reflections from Ambassador Johnnie Carson’s Address

By: Chris Besse

On January 16, 2013, Ambassador Johnnie Carson, Assistant Secretary of State for the Bureau of African Affairs, visited the Woodrow Wilson International Center for Scholars to speak on the foreign policy of the United States as it relates to the African continent. In his address, Ambassador Carson spoke about the progress that the United States and Africa have made together over the past four years.  He addressed Africa unlocking the continent’s potential while also looking at the challenges ahead. The Ambassador opened his address by saying he is very optimistic about the future of Africa.  Ambassador Carson states that Africa is undoubtedly improving both economically, culturally and politically; but Africa still faces many problems ahead.[i]

After his speech, I had the privilege of talking to Ambassador Carson. We spoke on how Americans and people around the world need to take action in order to help countries including those in Africa that are experiencing enormous foreign debt.

What It Means To Be a Jubilee Congregation

"When spider webs unite, they can entangle a lion."- Ethiopian Proverb

By Gianna Rendano and Kerri Peters

When people of faith join together for a common purpose - a holy purpose that is rooted in every faith tradition – it can turn the tides of economic injustice, challenge harmful and destructive polices and advance a prophetic vision of fairness, equality and hope for the world's poorest. To be a Jubilee Congregation is to transform religious beliefs and traditions into action to give hope to the world’s most vulnerable.

UK Loans Used for Defense Spending by Dictators

 

British-made Alvis Stormer vehicle, supplied to then Indonesian dictator General Suharto in the mid-1990s.

By: Amber Przybysz

In November, the United Kingdom government for the first time published information detailing where debts owed to the UK come from, calculating how much different sectors contribute to the debts that continue to burden low-income countries.[i] The report uncovers that the UK has lent nearly £1 billion to countries including Indonesia, Egypt and Iraq to pay for weapons, some of which have been allegedly used against civilians.[ii]

A forthcoming report by Global Financial Integrity finds that Zambia lost US$8.8 billion in illicit financial outflows from 2001-2010

This is a special blog from our partners at Global Financial Integrity. It was originally written in December 2012, and since then there has been significant public debate on illicit financial flows and policy solutions. 

 

flickr / photosmith2011

In our newest report, Illicit Financial Flows from Developing Countries 2001-2010, we look at illicit financial flows–the proceeds of crime, corruption, and tax evasion–leaving the developing world. Illicit financial flows are a type of capital flight, and have been a persistent plague on the developing world for some time now. Our new report will be released on Tuesday morning. But for today, I want to focus more narrowly on Zambia, one of the poorest nations on earth and one of the clearest examples of the damage caused by both illicit and licit capital flight.

Our research finds that $8.8 billion left Zambia in illicit financial flows between 2001 and 2010. Of that, $4.9 billion can be attributed to trade misinvoicing, which is a type of trade fraud used by commercial importers and exporters around the world.

Update: Argentine Naval Vessel Returns Home

By: Amber Przybysz

Another battle against vulture funds was won this week when the Argentine naval vessel, the Libertad Frigate, arrived home to the Navy base in Mar del Plata City.[i] This comes after the vessel was detained in Ghana for over two months by a court order won by vulture fund NLM Capital. The vessel began the long journey home in December when a panel of four judges at the International Tribunal for the Law of the Sea unanimously ruled that Ghana must release the ship.[ii] In the ruling, the tribunal declared that a war ship is immune from seizure.[iii] Argentina President Kirchner is not taking any chances, though, as it is rumored that she has rented a British plane for her upcoming trip to Asia instead of using the official Tango 01 plane in hopes of avoiding another court-ordered seizure of government property.[iv]

When Lending Kills: The World Bank and Guatemala

By: Andrew Hanauer

The tragic, horrifying events in Connecticut last month serve as a heartbreaking reminder of the value of human life.  They have also provoked a national conversation around a host of issues related to the shooting, from gun control to mental illness.  At the heart of this conversation is the question of what we – as people, as institutions, as a society – can do to prevent similar tragedies in the future.  It is a powerful question without easy answers and by asking it we recognize our collective responsibility to each other as human beings.  The story of the Chixoy Dam in Guatemala is a reminder of what happens when that responsibility is neglected.

What I Learned as a Jubilee USA Intern

By: Gianna Rendano

Working at Jubilee USA Network as the Advocacy and Policy Intern has been an exciting new learning experience. During my time here, I have been able to learn how a nonprofit functions, the significance of bipartisan advocacy and the importance of connecting with grassroots organizations. I also had the pleasure of working with a fun and enthusiastic team!

I recently graduated from Duquesne University in Pittsburgh where I focused my studies on humanitarian operations and human rights issues. Interning at Jubilee USA was my first taste of working in a field where I was able to utilize my degree. I only knew the basics about the World Bank, the International Monetary Fund and debt-related issues but during my internship, I have been able to learn new aspects of international relations especially in regards to the relationship between economics and human rights. This has shaped the way I now view the world.