Jubilee USA Network in Oregon

Joining hands to break the chains of debt

www.jubileeusa.org and www.jubileeoregon.org

How it began• US deficit spending of ’60’s >>> US prints

more money>>> US $ devalued >>> oil prices went up >>> put oil dollars in US banks >>> banks lent to anyone for anything

• In poor countries: cash crop values dropped & oil prices and interest rates increased >>> debtor trap

• 1982 Mexico defaulted on loan payments

Enter the troublesome troubleshooters

• IMF and World Bank bailed out commercial banks>>>restructed loans to poor countries, with conditionalities, structural adjustment programs were born.

Structural Adjustment Fails

• Wage caps for teachers, doctors & nurses• User fees for water, health and education• Export led development: coffee not corn• Foreign private investment benefits• Privitization of water, electricity,

communications, minerals…..• Sustainable debt = Must service debt first• Conditions = Delays• It’s all about control

Brief History of Jubilee

• Resistance began with movements in the Global South decades ago, Jubilee South formed from them

• People’s movements inspired northerners to form Jubilee North

• The two have been working as partners ever since

• Gained debt cancellation for 18 of the world’s poorest countries in 2005

Simple facts about debt

Sub-Saharan Africa has repaid 90% of the $294 billion received in loans between 1970 and 2002.

But due to high interest rates and unjust lending practices there is still $201 billion left to pay, with an annual debt service of $14 billion.

Millenium Development GoalsEight goals that the entire world agrees to!

By 2015, halve extreme poverty, universal primary education, gender equality and empowerment, reduce childhood mortality, improve maternal health care, combat AIDS and TB, ensure environmental sustainability and develop a global partnership for development ie. right relations and jubilee justice.

Debt Cancellation and MDGs

Without debt cancellation, the MDGs will not be met in at least 67 of the world’s poorest

countries.

Debt Cancellation Works!

Debt cancellation reduces dependence on foreign aid

FACT: Africa pays more in debt service than it receives in aid, new loans and assistance.

Debt Cancellation Works!

Unconditional debt cancellation allows governments to prioritize the interests of their own people in their budgets, rather than the interests of the IMF and the World Bank.

This is often called “pro-poor budgeting”

Some success to date

• In 2005 the Group of eight agreed to cancel the debt for 18 of the world’s poorest countries.

• The results to date have been astounding.

Debt Cancellation Works!

• Uganda doubled school enrollment to 97%

• Mozambique vaccinated 500,000 children

Debt Cancellation Works!• Zambia eliminated

rural health care fees and hired 4,500 teachers

• Ghana is investing in basic infrastructure, including rural feeder roads, as well as education and health care.

Debt Cancellation Works!

• In Nigeria, the government is training 145,000 primary school teachers and hiring 40,000 new teachers.

• Tanzania is importing vital food supplies for those affected by drought.

Debt Cancellation Works!

• In Burundi, elimination of school fees in 2005 allowed an additional 300,000 children to enroll.

Jubilee USA Network in Oregon

Joining hands to break the chains of debt

www.jubileeusa.org and www.jubileeoregon.org