In the balance

A joint briefing paper by Jubilee Debt Campaign and coalition members ActionAid and Christian Aid, setting out why debts must be cancelled now to meet the Millennium Development Goals.

The report highlights the current G8 proposals for debt relief, but makes it clear that much more is needed. In particular, it draws attention to the following issues:

• Debts must be cancelled as a matter of justice: creditors must accept their share of responsibility in creating the current debt crisis, and cancel debts on this basis.
• Cancellation must be available to all countries that need it: our analysis of the financing required to meet the Millennium Development Goals indicates that at least 62 poor countries need 100% debt cancellation now.
• There should be accountability but not economic policy conditions: the governments of indebted countries must demonstrate to their citizens that they are spending money well and accountably. But this must not be used as an excuse to impose economic policy conditions.
• All unpayable debts must be cancelled: this must include all multilateral, bilateral and private debts.Debts must be cancelled in full: debt service cancellation for a limited period is not enough. Debts must be completely written off.
• Debt relief must provide additional resources for poverty reduction: if debt cancellation is to make a difference to the poorest people in the world, it must release extra funds and not be paid for by taking money out of aid budgets. For all 62 countries, this will require $45.7bn per year.
  

The full report can be downloaded by using the link on the right.