Cancellation Of Debt

Sir, - We congratulate Archbishop Walton Empey and the Church of Ireland Synod on passing a motion in Belfast last week calling…

Sir, - We congratulate Archbishop Walton Empey and the Church of Ireland Synod on passing a motion in Belfast last week calling on the countries attending the G8 summit in Japan next July to continue the process of debt cancellation and address elements in international trade agreements which disadvantage poor countries. We wish to comment on the fear, raised at the synod by Mr Hilary Morrison and reported by you (May 17th), that the main beneficiaries of debt cancellation would most likely be corrupt rulers and governments who "would laugh all the way to their Swiss Bank accounts". This is indeed a valid fear that citizens in both creditor and debtor nations share. It is this fear which prompted lobbyists and campaigners to call for debt cancellation to be linked to national poverty reduction strategies, designed and monitored through a wide-ranging consultation process with civil groups in-country. Creditors have responded to this call by introducing such strategies as a new condition for debt cancellation. Examples include the Poverty Action Fund set up by the Ugandan Government and the Debt Relief Account in Tanzania to be audited monthly by a committee of donors, creditors, the government, the business community, the media and MPs. It remains to be seen whether the creditor community will accept the macroeconomic implications of these plans and release funds accordingly.

Waiting until societies are completely corruption-free is unrealistic and untenable to the billions of poor currently suffering the devastating effects of the debt crisis. Far better to take Archbishop Empey's cue and support solutions which aim to tackle the multiple problems head-on in a democratic and responsible fashion. - Yours, etc.,

Niamh Carty, Programme Funding Manager, Christian Aid Ireland, Niamh Gaynor, Co-ordinator, Jesuits for Debt Relief and Development, c/o Upper Sherrard Street, Dublin 1.