13 May 2005

Millions of poor people face early death unless the world’s richest nations write off all the unpayable debts in developing countries.

This warning comes today from campaigners who reveal that at least 62 states – not just the 27 heavily-indebted poor countries so far earmarked for debt help – need total debt cancellation to lift people out of poverty. And debt write-off must provide new money, says the Jubilee Debt Campaign and member organisations ActionAid UK and Christian Aid. The three organisations make the warning in a new report to mark World Debt Day on Monday (16 May), when activists will demand the write-off of all debt in events around the globe.

The report, In the Balance, cites the 30,000 children who die each day from poverty through hunger, lack of clean water and disease which debt cancellation could help prevent. It says Britain, whose chancellor Gordon Brown is pushing other wealthy nations to agree a deal on debt relief, must cancel debt stocks, not just provide debt service relief until 2015.

Stephen Rand, co-chair of the Jubilee Debt Campaign, said: "The UK government says it is pushing for 100 per cent  debt relief. Yet, by committing only to cover debt service until 2015, ministers offer more like 30 per cent debt relief. Britain must use the G8 summit to go much further."

ActionAid UK policy officer Romilly Greenhill, co-author of In the Balance, said: "Our report shows that the current debt relief proposals on the table are grossly inadequate, compared to the scale of need. At least 62 countries will need total debt cancellation if they are to avert the deaths of thousands of children every day."

The coalition makes its plea exactly seven years after the Jubilee 2000 human chain at the G8 summit of the world’s richest nations in Birmingham and seven weeks before the G8 talks at Gleaneagles in July. Reports suggest that in the weeks ahead UK prime minister Tony Blair will use his close relationship with president George Bush to persuade the US to support Britain’s plans for development at the G8 in Scotland.

The IMF spring meeting last month in Washington ended in US refusal to back Mr Brown’s move for the IMF to finance debt cancellation from gold sales by the fund. Mr Blair is said to believe he can secure agreement at the summit to write off the debts owed by the world’s poorest countries to the International Monetary Fund, the World Bank and the African Development Bank.

In a World Debt Day message to campaigners, Mr Blair says: "I salute your achievements and your determination and join my hopes and prayers with yours that this year in particular may see great advances towards the goal of a world where abject poverty is a thing of the past."