Illegitimate debts a burden

IN 2005, the G8 made a commitment to canceling debts some impoverished countries owed to the World Bank, the International Monetary Fund and the African Development Bank.

That deal, while benefiting some countries, did not solve the crisis of indebtedness which continues to burden the economies of impoverished countries.

The 2005 debt cancellation deal covers a limited amount of loans and creditors. The more fundamental problem is that the package does not take into account the urgent need for creditors to be held accountable for giving irresponsible loans.

Debt and Development Coalition Ireland believes that if a lender should not have given a loan, they have no right to attempt to collect it.

Vast amounts of debts remaining on the books of impoverished countries were provided by rich lenders in the knowledge that the money would have a damaging impact.

Loans with disastrous effects have been the result. These include loans given for projects which remain unfinished, loans spent on socially and environmentally destructive projects, and on military spending which has resulted in the oppression of vulnerable people.

Many loans were, and continue to be, provided to impoverished governments on unfair terms or with damaging policy conditions attached to them.

If the members of this undemocratic G8 club are to prove there is a value to holding these expensive summits, they must demonstrate a commitment to redistributing their wealth and power. A partial step in this direction would be to admit their responsibility in the creation of illegitimate debts and canceling them immediately.

Nessa Ní Chasaide

Coordinator

Debt and Development

Coalition Ireland

All Hallows

Grace Park Rd

Drumcondra

Dublin 9