DAVID JOYCE,
Sir, - "Business as usual" is not a viable option as the world's leaders meet in Johannesburg for the UN World Summit on Sustainable Development. Third world debt is surely a clear-cut case and we are encouraged by the article by Tom Kitt, Minister of State for development aid (Opinion, August 21st) and his statement that the Government's new policy on third world debt "will form a major part of our contribution" there. We hope that Mr Kitt and the Taoiseach will vigorously pursue their newly stated policy objective of total debt cancellation (however conditional) at the summit this week.
Malawi and Zambia are two of the countries approved for starting to receive debt reduction but to which the IMF subsequently suspended payments because of their failure to meet specific "performance requirements". Several hundred thousands of citizens in these countries now face starvation as a result of severe drought. Both countries also have high rates of HIV. Meanwhile, millions of dollars pour out of Southern Africa in debt repayments - over $150 million a year to the World Bank alone. In indebted countries, unions and other NGOs have long been fighting against cuts in health, education and public service that result from the debt crisis. Mr Kitt has no doubt witnessed the effects of this when he visited Malawi and Zambia last week.
We urge Mr Kitt and the Taoiseach to press the case for total debt cancellation at Johannesburg, rather than continuing to support the failing Heavily Indebted Poor Countries Initiative. According to the Minister, Zambia, for example, will be paying 20 to 25 per cent of government revenue on debt servicing in the coming years - that is, devoting more resources to service its debt after receiving debt reduction under this initiative than it was before!
Yes, the IMF will plead poverty, as will the World Bank and rich countries. We do not share the Minister's view that it is not possible to fund cancellation from the existing resources of the World Bank and the IMF. We suggest that political will, not poverty, is at the root of this problem.
The Irish Government's call in the new debt policy for other donors to reach the UN target of 0.7 per cent of GNP will remain credible only if we ourselves remain on target in the next few years - even in the current less benign economic situation. - Yours, etc.,
DAVID JOYCE,
Development Education
Officer, ICTU;
Chair, Debt and
Development Coalition,
Parnell Square,
Dublin 1.