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Debt Relief in the Poorest Nations

What Members and Friends Can Do to Follow Up on the World Conference Action in Support of Campaigns to Reduce the Debt of the Poorest Nations

At the April 2000 World Conference an overwhelming majority of delegates voted for a resolution in support of the international Jubilee 2000 campaign. This campaign is working to release the poorest nations of the world from debts that are creating a crushing load for the poor.

The resolution invites members and friends to study quality resources on debt relief and to campaign for debt relief by writing to government representatives and leaders, especially in wealthy nations. Informed church members and friends can make a big difference by writing a simple, personal letter expressing their views. It has been said that when a member of congress or parliament receives a letter, they believe one thousand other voters are thinking the same way. We have an important opportunity to witness on behalf of the poor and exercise our stewardship as citizens in the nations in which we reside.

The following offer suggestions and helps:

We encourage you to take action by studying this issue and then, if you feel so moved, to write to your member of Parliament or Congress. (Remember that all it takes for evil to triumph is good people to do nothing.)

Andrew Bolton
Peace and Justice Ministries
1001 W. Walnut, Independence MO 64050  USA

Tel. (+1 USA) 816/833-1000 ext. 1372 or 
E-mail: abolton@CofChrist.org

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Background Notes on the Debt Problem

Biblical Background on Debt Release

The poor have always struggled, especially with debt. "Every seventh year you shall grant a remission of debts" is the ancient law amongst the Jewish people. (Deuteronomy 15:1) When we read that Jesus said "You always have the poor with you" (Mark 14:7) we sometimes use this as an excuse for complacency. But we need to go on to read the rest of the scripture that Jesus was quoting from Deuteronomy, "I therefore command you, 'Open your hand to the poor and needy neighbor in your land.'" (Deuteronomy 15:11)

We are called this Jubilee year to open our hands to the poor and needy neighbors in our world. Biblical Jubilee is a way of doing that. Jubilee is the year after seven Sabbath years; seven times seven equals 49 years. This is a super Sabbath year. In ancient Israel it was a celebration for all, but especially for the poor: this was the year they got their land and livelihood back. In the Restoration movement we are a Jubilee people. In our beginnings we were a movement of the poor for the poor. We were a people with a heart for the poor. We believed in economic justice for the poor.

The Jubilee 2000 campaign is about supporting relief of the most indebted nations from their external debts in a way that blesses the poorest in those nations. The campaign is inspired by the biblical principle of Jubilee.

Background on Third World Debt

The debts of the least developed nations were largely incurred in the 1970s when there was an excess of oil-dollars. Many loans to Third World nations were made irresponsibly by bankers from the West. Cold war politics found Western governments supporting military governments such as Indonesia, Brazil and the Philippines through loans. Western governments continued to give loans, even though they knew that the money was being siphoned off by corrupt dictators. Now many dictators are gone, and democratic governments are in place. But the debts still have to be paid. The democratic government of South Africa is still paying the debts of the apartheid years. The democratic government of Argentina is still paying the debts corruptly incurred from the West by the former military government. The debts became worse through high interest rates in the late 1970s and the collapse of commodity prices in the 1980s. Debts became unpayable. A recent UNICEF study of 30 developing countries indicates that nearly two thirds of these nations allocated more for debt payment than for basic human services. As Hilde Johnson, Norwegian Minister of International Development and Human Rights has said, "Breaking the vicious circle of poverty also requires eliminating the unsustainable debt burden."

The rights of children throughout the world are not likely to be realized as long as governments remain trapped in debt bondage. In 1996-1997, for example, 4% of Cameroon's central spending went toward basic social services, while 36% went toward debt service. In the United Republic of Tanzania, four times more is spent in repaying debt than on primary education and nine times more than on basic health. Overseas Aid from rich countries to developing countries from 1992 to 1997 has dropped by 21% or more. During the same period the wealth of developed countries has increased by 30%.

Even so, shouldn't people repay their debts? In 1997 1.3 million U.S. citizens declared personal bankruptcy, erasing $40 billion in debt. States in the USA have at times refused to pay their debts. Britain after WWII was granted the right to not pay her debts. So was Germany in the London Accord of 1953. The Allies remembered that huge debts imposed on Germany after World War I brought Hitler to power. There are, therefore, significant precedents for debt release, as well as important pragmatic and humanitarian reasons.

The International Jubilee 2000 Campaign

The international Jubilee 2000 campaign has been very successful in mobilizing common people to put pressure on their governments in rich nations to cancel the debt of poor countries.

For instance, in Great Britain Chancellor Gordon Brown announced at the beginning of this year a 100% cancellation of bilateral debt for 25 countries. France has committed itself to 100 % cancellation of its bilateral debts, approximately $1 billion, to some of the poorest countries. Action has also been taken in the USA. None of this would have happened without support from common people, including those in churches, lobbying their governmental representatives. But there is still a long way to go, and continual pressure by ordinary citizens is needed to help politicians follow through.

What would be the cost for U.S. citizens to forgive the debts of poor nations owed to the USA? Just $2.41 for each U.S. resident. Compare this with the debt of $1,200 owed by each Bolivian child.

However, the pressure needs to be maintained and the Jubilee 2000 Campaign is continuing. Meetings are being held in the early part of 2001 to reorganize the campaign on an ongoing basis.

From Debt to Human Rights

The proposed plans for debt relief recognize that human development is crucial to ensuring human rights. Churches, trade unions, and other non-government organizations make up what is sometimes called civil society. When empowered, civil society becomes the force that can demand human rights. The Debt Relief plans that are being discussed in the US Congress, at the IMF and the World Bank, and in Jubilee 2000 make a direct link between debt relief and the human development that must accompany it.

First, governments who are blatantly denying human rights will not qualify for debt relief. Countries who do qualify will set up human development funds. Money saved from the forgiven debts will go directly to these transparent funds and will be used to fulfill human development goals. The goals will be determined prior to debt relief qualification and may vary based on each country's needs and history.

A Success Story

Since 1996 the people of Uganda have been able to use forgiven debt money to establish a Poverty Action Fund. The money is being used for rural feeder roads, agricultural extension, water supplies, primary health care, and primary education. The universal primary education program has doubled primary school enrollment. This has been accomplished in just 2 years with a minimal debt reduction. A success like this is a result of debtors and creditors working together with in-put from civil society in an environment of transparent actions.

 

The Resolution Passed by World Conference

The Jubilee 2000 resolution was initially sponsored by the Council of Twelve Apostles. It was also sponsored by the Human Rights Committee and the Earth Stewardship Committee. The resolution calls us, as a World Church, to join the Jubilee 2000 campaign for debt relief. The full text of the resolution is given on the page 5. The resolve asks us to study quality resources. These include resources that educate and promote dialogue about debt and assist in a deeper understanding of the gospel of Jesus. A list of such resources is provided on page 7.

The resolve asks us, as members of civil society, particularly in wealthy countries, to write to our governmental representatives and leaders and to urge them to forgive the unpayable debts of the poorest nations and to help these countries empower their civil societies with human development. Suggestions on writing letters are given on pages 8 and 9. The resolution calls for our letters to request clear conditions that ensure the improvement of economic and social conditions in the debtor countries. An example of such legislation is HR 1095, a piece of legislation that was before the USA Congress in 1999. It outlined the following clear conditions:

 

a) there are sound economic policies
b) a human development fund is established to direct savings from debt relief into education and other basic services.
c) the development of civil society is encouraged - that churches, trade unions and ordinary citizens hold government to account.
d) the loaners and borrowers are obliged to make what they are doing public so that ordinary people in both rich and poor countries know what is going on. (The IMF has already started doing this from June 1999.)

The Jubilee 2000 resolution passed by World Conference encourages you, as members of an international church, to work for the forgiveness of debts of our brothers and sisters in the poorest nations of the world and to advocate for economic development that includes human rights.

Andrew Bolton
Peace and Justice Ministries
(last updated 9 February 2001) 

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Jubilee 2000 Resolution


Approved April 5, 2000

World Conference Resolution 1266

Whereas, The theme of the 2000 World Conference is "Jubilee!"; and

Whereas, Every seventh year Israel, a freed slave people, were commanded to forgive debts and set slaves free (Deuteronomy 15:1-2, 12-13); and

Whereas, At the end of every seven times seven years a Jubilee was celebrated with the proclamation of liberty throughout the land to all its inhabitants and the return of family lands to the landless (Leviticus 25:8-10); and

Whereas, Jesus of Nazareth announced a Jubilee at the beginning of his public ministry by announcing good news to the poor, proclaiming liberty to the captives, and declaring the year of the Lord's favor (Luke 4:18-19); and

Whereas, Instruction which has been given in former years is applicable in principle to the needs of today (D & C 147:7); and

Whereas, The world's poorest nations in Africa, Asia and Latin America continue to struggle under a crushing burden of debt repayments, a significant portion of which is owed to multilateral development agencies and to governments of wealthy nations like Canada, France, Germany, Italy, Japan, the UK, and the USA;1 and

Whereas, Much of this results from borrowing that has benefited primarily the rich while the burden of repaying the debt falls heavily on the poor people, and cannot be paid without causing environmental harm and great social suffering to the most impoverished members of society, weakening civil society and inducing a downward spiral of economic, social, political and environmental decline;2 and

Whereas, Past World Conferences have clearly expressed their concern for the well being of all persons and especially the poor globally (WCR 1148, WCR 1161, WCR 1151, and WCR 1184); Therefore be it

RESOLVED, That this 2000 World Conference challenges all of the members, friends and congregations of the Reorganized Church of Jesus Christ of Latter Day Saints to join with others of good will in the world-wide Jubilee 2000 Campaign, and invites them to take the following specific actions:

  1. Study quality resources as individuals, groups and congregations on the issues related to local, national and international poverty, including the indebtedness of poor nations, in the context of the imperatives of the gospel of Jesus; and

     

  2. Campaigning and writing to governmental representatives and leaders, particularly in wealthy nations, urging the release of these impoverished nations from their indebtedness by the end of the year 2000, with clear conditions which ensure that the economic and social conditions of the poor of these lands are improved.

     

  3. Make a concerted effort to work for the cause of the oppressed throughout the world by improving corporate and individual commitment to organizations such as Outreach International, RLDS Medical-Dental Association, the children's Peace Pavilion, World Hunger Fund, GALA, Ethnic Ministries, Urban Ministries, World Service Corps, and other organizations deemed worthy by members that further the cause of peace and justice for the poor and oppressed.

Notes
1. Based on figures taken from World Bank World Development Indicators, 1999, Washington, DC ; World Bank Global Development Finance, 1999, Washington, DC; 1999 World Bank Data Base On-line, www.worldbank.org; cited in The Jubilee 2000/USA World Debt Chart June 15, 1999, Washington, DC.
2. New Internationalist Magazine, May 1999, summary pages 18-19 using World Bank sources.

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Resources on Debt Relief

Websites Regarding Third World Debt Relief

Bread for the World link to US Congress http://congress.nw.dc.us/bread/
Bread for the World Legislative Issues (USA) http://www.bread.org/issues/debtrelief/legsumm.html
Bread for the World home page (USA http://www.bread.org/
How to find and write to your US Representative http://www.house.gov/writerep/
Jubilee 2000 USA http://www.j2000usa.org/
Jubilee 2000 UK, News articles http://www.jubilee2000uk.org/main.html
Offering of Letters Campaign from USA http://www.bread.org/issues/offering.html
International Monetary Fund home page http://www.imf.org/
World Bank home page http://www.worldbank.org/hipc/

Books and Articles


Judd, Peter. Transformed by the Spirit: Reflections on Jesus' Proclamation in the Synagogue at Nazareth. Independence, MO: Herald House, 2000.

Kinsler, Ross and Gloria Kinsler. The Biblical Jubilee and the Struggle for Life: An Invitation to Personal, Ecclesial, and Social Transformation. Maryknoll, NY: Orbis Books, 1999.

Mackender, Lisa and Martell, Brad Jubilee - A Cycle of Justice. Independence: Herald, 2000

Synder, Robert, "Proclaiming Jubilee - for whom?" Christian Century June 30-July 7, 1999 pp 682-684, with "Letters - Debt Relief", follow-up to article Christian Century August 11-18, 1999 pp. 786-787

 

Education Packet


Contact the office in your area to order an Education Packet. In the U.S. it costs $5.00 and is available in English and Spanish.

Australia
     Contact: Grant Hill, TEAR Australia, PO Box 289, Hawthorn, 3122 Victoria, Australia
     Phone: (03) 9819 1900 Fax: (03) 9818 3586. (International Code +61 3)
     Email: grant@tear.org.au
     Website: www.jubilee2000.org.au

Canada
     Contact: Canadian Ecumenical Jubilee Initiative, P.O. Box 772, Toronto, ON Canada,
     M4Y 2N6 Tel: 416 922 1592 Fax: 416 922 0957
     E-mail: jubilee@devp.org; stratton@web.net
     Website: www.web.net/~jubilee

United Kingdom
     Jubilee 2000 Coalition, 1 Rivington Street, London EC2A 3DT
     Tel: +44 (0)171 739 1000 Fax: +44 (0)171 739 2300
     E-mail: mail@jubilee2000uk.org
     Website: www.jubilee2000uk.org

USA
     Contact: Jubilee 2000/USA, 222 East Capitol Street, NE
     Washington DC 20003-1036
     Phone: (202) 783-3566, Fax: (202) 546-4468
     Email: coord@j2000usa.org
     Website: www.j2000usa.org

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Writing Letters to Members of Congress

Writing a letter is one of the most effective ways we can communicate with our elected officials. Since most representatives and senators tally public opinion to help them make decisions, think of the impact we can achieve flooding congress with thousands of letters!

Contrary to popular belief, it doesn't take an expert to write a good letter. Just a few sentences can convey a need and motivate our leaders to specific action.

 

Letter-Writing Tips

You can write a letter in 90 seconds! Just follow this simple outline:

1. Be personal

A mailed handwritten letter receives much greater attention than a preprinted card or letter. In whatever form, include your postal address.

2. State something specific and be concise

Express clearly and briefly what action you would like. One or two paragraphs should be enough.

"Please make the needs of hungry people a priority during your term."

3. Name the Action

Whether it is Jubilee 2000/USA legislation, World Bank reform or other issues, it is always good to be specific. Bread For the World provides background on action issues as well as on specific legislation moving through Congress.

"Now is the time to provide debt relief for poverty reduction in the world's poorest countries."

4.Tell why this is important.

Put the situation in concrete terms.

"More than one in four U.S. children is hungry or at risk of hunger."
"The United States has the highest child poverty rate of any industrial country, mainly because our government does less for poor children than the governments of other industrial countries."
"Nutrition programs save money by preventing future medical, education and welfare costs."
"Food programs are only 2.5 percent of federal spending. We don't have to balance the budget on the backs of our most vulnerable citizens."

 
spacer Send your letters to:
Senator ____________
U.S. Senate
Washington, D.C. 20510
Representative ____________
U.S. House of Representatives
Washington, D.C. 20515

You can also call the U.S. Capitol switchboard at (202) 224-3121 for the fax number
of your members of Congress.

© 1999 Bread for the World, 1100 Wayne Avenue, Suite 1000 / Silver Spring, MD 20910 USA
Tel. 800-82-BREAD / Fax 301-608-2401 http://www.bread.org/issues/lettertips.html

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A Sample Letter to Congress or Parliament Regarding Third World Debt

(Today's Date)

Dear Representative/Member of Parliament (Insert Name):

At the recent World Conference of the Reorganized Church of Jesus Christ of Latter Day Saints, we, as a body, voted to support the Jubilee 2000 campaign for Third World Debt Relief. We urge you to make Third World Debt reduction a priority, secure what the G7 promised in Cologne, and sponsor legislation that contains clear conditions for human development as a result of debt relief.

We thank you for your attention to this very important matter. It is time for the (Insert your nation here) government to forgive debt and encourage human development and the respect for human rights in the Third World.

Sincerely,



(Insert Your Name)
(Insert Your Address) 

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