Progress on Haiti’s Debt – Keep up the Pressure
As a result of hundreds of thousands of activists across the world pressuring their governments to drop all of Haiti’s debt, the World Bank and IMF have made some moves in the right direction. But we need to keep up the pressure ahead of some vital meetings next week – and ensure that cancellation means total cancellation – not simply a moratorium on payments.
With 200,000 people feared dead, we recognise the immediate importance of the relief work taking place in Haiti. But relief alone is not enough - Haiti needs to be freed from the debts and economic domination that have impoverished and enslaved her people for centuries.
Thanks to action from campaigners in the UK and internationally, the World Bank, International Monetary Fund and Inter-American Development Bank have all spoken of the possibility of debt cancellation:
The IMF has said:
"The most important thing is that the IMF is now working with all donors to try to delete all the Haitian debt, including our new loan. If we succeed-and I'm sure we will succeed-even this loan will turn out to be finally a grant, because all the debt will have been deleted."
This is an unprecedented statement, but final decisions will not be taken until the IMF meets next week, and some governments are believed to be unhappy with debt cancellation. The IMF also needs to drop all conditions on Haiti and ultimately leave development to other organisations which have a better track record.
The Inter-American Development Bank is expected to approve $128million of grants to Haiti but is still Haiti's biggest creditor, with $441million owed to it. It has said that it's "Board of Governors could consider the possibility of providing further debt relief to Haiti". As the Bank now accepts that Haiti should receive grants rather than loans, there seems no justification for maintaining this outstanding debt.
The World Bank has announced $100 million in grants to Haiti and said it will waive payments for five years on the $38m owed to it and is "working to find a way forward to cancel the remaining debt."
Other creditors:
Taiwan's President Ma Ying-jeou is sending aid to Haiti and claims that Taiwan's loans are from private banks, but that he will ask the foreign ministry how he can help to cancel its debt.
Venezuela is donating unlimited fuel to Haiti, as well as relief aid set at $100 million. Furthermore, the Venezuelan government comitted on January the 25th to cancel Haiti's debts of $295 million.
On Monday 25 January, donors meet for a summit in Montreal to discuss the Haitian earthquake. Aid and debt issues will be discussed. We need as many campaigners to take action to pressure the summit - and the IMF meetings later in the week. In previous disasters, donors have agreed to suspend payments on debts while at the same time adding interest which needs to be repaid later. Haiti cannot and should not be repaying any debt for the foreseeable future.
Indeed, many campaigners argue that Haiti is owed money, for many centuries of slavery, resource looting, enforced debt repayments and brutal dictatorships supported by the rich world. It is surely time to repay that debt and ensure that Haiti is allowed to develop as a free and democratic country.
KEEP UP THE PRESSURE: ASK THE UK GOVERNMENT TO DROP HAITI'S DEBT >>
Seumas Milne article from the Guardian >>
No shock doctrine for Haiti facebook group >>
Civil society message to donor summit in Montreal >>
Montreal Gazette article on donor summit >>