A group of 20 charities advocate for the Government’s introduction of a debt-cancellation scheme for lower-income countries in the Roman Catholic Church’s Jubilee Year.
Christian Aid, Debt Justice (formerly Jubilee Debt Campaign), and other charities argue that high debt-servicing costs are preventing global-South governments from investing in “vital public services” such as education and health, and efforts to limit climate change in a letter published this week.
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Legislative action call by charities
According to the letter’s report, 32 African countries spend more on paying external debts than on health care. It also reports that debt payments for lower-income countries are at their highest for 30 years.Â
Private lenders such as banks, hedge funds, and oil traders are the largest group of creditors. Many are UK-based, and English law governs 90% of the contracts.
“The UK can only lead on international debt if it ensures Western private lenders take part in debt relief. If effective debt cancellation is not delivered, new multilateral loans will just bail out private lenders rather than be invested in meeting countries’ needs.
As in the 1980s and 1990s, countries will remain in debt crises for decades. When large-scale debt cancellation becomes unavoidable, the public sector will bear the cost rather than the original lenders.”
Achieving sustainable debt level through urgent reforms
While the charities welcome the Government’s prioritization of tackling unsustainable debt, they wrote that it would not happen through business as usual but that a complete change in the UK approach is required. It recommends a debt cancellation scheme that brings debt payments down to a sustainable level and that the Government Pass legislation ensures all private lenders participate in debt cancellation and suspend repayments to private lenders during debt cancellation negotiations.
Choose Hope, representatives of the charities, including CAFOD, Oxfam, and Save the Children, met outside the Treasury on Monday to launch the campaign Cancel Debt.
A long history of advocacy
From time immemorial, UK charities have advocated for justice and equality. They tirelessly work to address the concerns of the vulnerable population, including the people of the Global South. They support sustainable development projects, provide emergency aid, advocate for policy changes, and help promote human rights.
Their cause benefits people of all ages, from children to young people, families, and communities. A good example is the significant impact of the Archie Foundation, which achieved a remarkable milestone of raising £2,039,936 to support babies, children, and families in need. Advocating for Global South debt cancellation will help charities tackle the issues of inequality and poverty, making more resources available for public service essentials like health care and education.