International
Debt Cancellation
Vulture fund update
We’ve been campaigning alongside the Jubilee Debt Campaign to see an end to vulture funds using Jersey’s courts to prey on poor countries for old debt. And last night Senator Ian Gorst, Jersey’s Chief Minister, announced plans to do so by introducing a law against vulture funds, as made permanent in the UK last year.
Over 26,000 of you in the UK signed our petition calling for this to happen. Very rarely are issues without grey areas, but companies just shouldn’t be able to behave in this way, and stop the poorest of countries getting back on their feet. And that’s what we’ve said as ONE to Jersey’s Chief Minister – and we’ve been heard.
In announcing these new plans, Senator Gorst said that:
“This demonstrates Jersey’s commitment to play its part in the global effort to support measures which assist the world’s most heavily indebted poor countries.”
We hope this means that the law will be introduced imminently, so countries like the DRC have a chance to stand up against these vultures. We may well still have more to do, and will keep you updated on Jersey’s promise, but for now, thank you for helping right this wrong.
Pakistan Update
When the floods hit Pakistan in July, the statistics were staggering: 20 million people displaced. 20% of the country under water. 2 million acres of crops destroyed.
ONE joined Avaaz, Jubilee Debt Campaign and Islamic Relief in immediately calling for a moratorium on debt service payments for 2 years to allow the country to rebuild.
If you haven’t already please sign our petition to have Pakistan’s debt repayments frozen. The countdown is on to the IMF’s meeting on October 14 and we need every single signature between now and then!
Also check out a slideshow from Islamic Relief of a recent visit by UK MPs Sadiq Khan and Shabana Mahmood, who went to see the relief effort first hand and have been campaigning for those affected by the floods and for a debt freeze:
Debt Relief for Liberia
A couple weeks ago we announced the great news that Liberia had reached Heavily Indebted Poor Countries (HIPC) completion point. For countries with a lot of international debt, the HIPC process offers a means to debt cancellation from multilateral organizations by undertaking major and difficult reforms to improve country economic and financial systems.
Liberia started the HIPC process two years ago with US$4.9 billion in debt, and potential annual repayments that overshadowed their entire annual budgets! Throughout the period of Liberia’s civil war and the resulting crisis, loans were not serviced and interest and penalties accumulated. By reaching completion point, Liberia has passed the 12 triggers stipulated by the World Bank and the IMF and today, Liberia has had $4.6 billion of their multilateral debt has been cancelled.
This action is a recognition of the tremendous efforts taken to transform Liberia, under the leadership of President Johnson-Sirleaf, and is an endorsement of the progress made in public financial management, debt management, governance, social service provision and the implementation of a poverty reduction strategy.
This decision now opens up more fiscal space for Liberia, allowing them the opportunity to embark on more development programs that will help expand the economy whilst continuing to tackle poverty. It also paves the way for additional debt relief. Liberia still has a way to go before we can declare victory. The Paris club, which holds Liberia’s bilateral debt, includes wealthy countries that meet under the Chairmanship of the French Ministry of Finance. Their next meeting is in September and the HIPC completion news certainly positions Liberia to make the best case possible.
On the ground in Haiti
As part of our brief series looking at Haiti 6 months on from the terrible earthquake that struck the country, we hear from Jo Barrett, Media Officer at Progressio, an international development agency that is working in Haiti and the Dominican Republic to help local communities ensure their voices are heard in the reconstruction process.
At first I didn’t know what was happening. I thought the t-shirt clad workers were simply taking a break from the gruelling task of shovelling heavy piles of rubble into buckets.
But then, one by one, they lowered their face masks and clambered down from the crippled, twisted remains of what was once a 4 storey building.
Almost 6 months after Haiti’s devastasting earthquake, I hadn’t imagined people would still be pulling human remains from the rubble. But they are.
“It’s a body”, one man told me. “They have found someone up there”, he said, pointing to a spot somewhere in the clumsy mass of concrete, steel and earth.
In Port au Prince, the devastated capital of the Western hemisphere’s poorest nation, it seems the grim reality of what happened on January 12 just won’t go away: as Haitians will tell you, every aspect of life here has been altered by “le douze”.
Take the sprawling camps. Even after 6 months, hundreds of thousands of people are still living under canvas. Entire families squeeze into tiny, baking-hot tents with barely enough room to lie down. There is little food, or water, or light.
And, slowly but surely, people are getting frustrated. “It’s extremely difficult living in the camp and there are lots of problems”, Coq Michelet Staël, an engineer, tells me as he tries to fix his tent up in St Louis Gonzague camp in central Port au Prince.
“We havent’t had much aid. There are days when we find food and water, but other days we don’t”, he adds.
But complaints about basic services quickly spiral into expressions of disappointment with the government. In neighbouring Henfrasa camp, Noel Fanes, also a student, lays the blame squarely with the country’s leaders.
“We have organised ourselves”, he says. “Nobody from the government has ever visited us, not even the mayor. It’s a way of hiding from their responsibilities so they don’t have to face up to what is happening”.
There is no doubt that people here feel they have had to go it alone.
Though the situation is complex, and though millions of dollars in aid have been pledged to help Haiti, I can’t help but feel Coq and Noel, and thousands more like them, deserve so much better.
Haiti’s Debt: 6 months on
Back in January more the 200,000 ONE members signed our petition to cancel Haiti’s external debt and help the country rebuild from the terrible earthquake that struck on 12 January.
6 months on we thought it would be useful to report back on what happened next.
At the handover of the petition during the G7 finance ministers summit in the small Arctic Canadian town of Iqaluit (the first ONE petition to be delivered above the Arctic Circle!) we welcomed the news that the G7 had agreed to support debt relief.
According to our friends at the Jubilee Debt Campaign Venezuela cancelled $295 million of debts at the end of January, while at the end of March the World Bank and the Inter-American Development Bank together forgave a combined total of $472 million.
That leaves Haiti’s only outstanding debts at the moment being held by Taiwan and the IMF. Taiwan is difficult as many of these debts are held by commercial creditors who are unwilling to forgive them. The IMF, however, is currently working on a process to cancel Haiti’s remaining debts, though this hasn’t happened as yet.
The process of rebuilding Haiti will be a long one, but as ONE members we can celebrate the fact that a country facing so many obstacles on the road to recovery has, at least, one less injustice to face: Haitians will no longer be saddled with the debts accumulated by previous governments.
Q&A with Michele Bertol ONE Member and “Bundled One”
On Saturday February 6, 2010, Michèle Bertol, a Haitian Canadian led ONE’s delegation to hand over our petition for Haiti debt forgiveness to the G7 Finance Minister’s meeting in Iqaluit, Nunavut, Canada.
A town of only 7,000 people near the Arctic Circle, it was harder to think of a more remote location to hold an international summit. When ONE feared we’d be unable to send the message of our 200,000 signature-strong petition to the G7, we found Michèle.
I had the opportunity to chat to Michèle about why Haiti is so important to her, and how on earth she ended up living next to the North Pole.
![michele_bertol-2786[1]](http://farm3.static.flickr.com/2750/4341837806_dc44335f97_b.jpg)
ONE: So, in your opinion, how did the handover of the petition go?
Michèle Bertol: Really well, it was well organised. [Canadian Finance Minister] Jim Flaherty wasn’t able to attend, but Derek Vanstone, Minister Flaherty’s Chief of Staff accepted the petition in his place, and he knew we were waiting for him. In fact, just an hour before Minister Flaherty had had a press conference and made a statement saying the G7 supported Haiti debt cancellation, so we were feeling really positive ahead of the handover.
We really wanted the photo to show the Northern setting, so even though we were indoors and we had a G7 sign, we decided to leave our parkas on while we handed over the petition and use our ONE t-shirts as arm-bands so that the picture would really feel like it was taken in the North.
ONE: Can you tell us a bit more about how you ended up in the Canadian Arctic after being born in Haiti?
MB: I was born in Haiti, but when I was 8 years old, my parents decided we needed to leave the country – there was a terrible dictatorship, and like most middle class Haitians, they feared for the future.
In those days you could apply for a green card for the United States from within the country, so my mother and I boarded a plane for New York on a 2 week holiday visa, with small suitcases as if we were just going for vacation.
A year later my father and my little sister came, and together we move to Montreal, where I spent most of my adolescence. I became a planner, and I got married and then my ex-husband was offered an amazing opportunity to work in Northern Canada, so he came up first. A few months later a planning position opened up, and I got it – and now I’ve been here for more than 20 years!
I have the unique experience of being genetically built for hot weather. Generations of my ancestors were all built to deal with heat – and so moving up North has been an intense physical challenge. I’ve been nicknamed ‘The Bundled One’ in the local language over the years because in situations where everyone was wearing 4 layers, I’d be wearing 12 – but I needed it just to survive!
However, although it’s physically uncomfortable dealing with -40◦ weather, I wouldn’t trade any of it for the life I’ve been able to live here in the North.
ONE: Why was delivering this petition so important to you?
MB: Although I’ve lived most of my life in Canada, I am Haitian born, and I still have family there. When I saw what happened, my heart wept. First it wept for my family but they are alright, but I also felt a great sadness for what had happened in the country of my birth.
I feel a great connection to Haiti, and in all the photos on TV and in magazines, I saw myself in all of those people. I felt very intimately the impact of that disaster and so I did everything I could on a personal level to help. So obviously I was so happy to be able to participate in any way I could in ONE’s initiative to have Haiti’s debt cancelled.
ONE: So why do you think the work of ONE is important for countries like Haiti?
MB: I feel that with ONE, every member looks beyond themselves for something bigger. The 2 million people who form ONE and the 200,000 ONE members who signed the petition have one thing in common: they look beyond their own life and their own conditions; beyond colour of skin or location; they look beyond tradition or age. They look beyond all that and only focus on the fact that we are all brothers and sisters. And with a heart that has such an outlook on the world, you can accomplish anything. And this is an example of how when people with such a compassionate vision get together, they can move mountains.
ONE: Is there anything you’d like to say to the ONE members all over the world who signed this petition?
MB: On behalf of our small group in the North, I offer to you and to all the members of ONE my deepest thanks for your heartfelt response to the plight of the people of Haiti. Your work embodies the essence of human compassion. ONE achieved its objective it seems now the cancellation of the debt is now just a formality. As a Haitian, and on behalf of all Haitians, I offer my deepest thanks for helping give Haiti a chance.
Petition Delivered; G7 Leaders Call to Cancel Haiti’s Debt!
Michèle Bertol, a Haitian Canadian and ONE member, hands over the petition urging the cancellation of Haiti’s debt to Canadian Finance Minister James Flaherty’s Chief of Staff, Derek Vanstone, at the G7 finance ministers meeting in Iqaluit, Canada. Michele is joined, from left to right, by fellow ONE members Vanessa Griffin, Jean-Sébastien Icart and Erin Faulks.
Thanks to the more than 400,000 who signed the petition worldwide, the cancellation of Haiti’s debt may be all but a formality at this point.
Yesterday afternoon, four ONE members delivered the petition signatures to cancel Haiti’s debt at the G7 finance ministers summit in the small Arctic Canadian town of Iqaluit.
The petition was signed by over 200,000 ONE members and nearly 200,000 Avaaz members globally. Haiti debt petitions from Oxfam International and Jubilee were also delivered.
The petition was handed over by Michèle Bertol, a Haitian Canadian and ONE member who is the director of planning for Iqaluit and who has lived in the town for 20 years.
Just before the scheduled handover, Canadian Finance Minister James Flaherty, speaking on behalf of all the G7 countries, issued the following statement:
“The earthquake caused unprecedented damage that requires exceptional measures. We agreed that the debt should not be a burden that will weigh on the recovery of the country. We are committed in the G7 to the forgiveness of debt. In fact all bilateral debt has been forgiven by G7 countries vis-à-vis Haiti.
The debt to multilateral institutions should be forgiven and we’ll work with these institutions and other partners to make this happen as soon as possible. We discussed the long term reconstruction assistance that Haiti will need as it emerges from the current urgent situation as a result of the earthquake.”
Though the $1 billion in debt is still not yet technically cancelled, the G7 countries (the United States, Canada, United Kingdom, Germany, France, Italy and Japan) hold considerable influence over the international lending institutions that must ultimately and officially cancel Haiti’s debt. We at ONE now feel confident that the full cancellation of Haiti’s debt is closer to being a done deal than ever before — and we hope the details will be hammered out quickly.
And it’s all thanks to the hundreds of thousands around the globe who stood up for the people of Haiti to make this happen. Thank you!
US Treasury calls for full cancellation of Haiti debt
Big news. The U.S. Treasury Department just announced their intent to work with partners around the world to forgive Haiti’s debt in full. They also voiced their support that aid to Haiti come in the form of grants, not loans.
As you know, ONE has repeatedly pushed for these principles, including a massive campaign that as of now has received over 200,000 signatures. We will continue to push world leaders to cancel Haiti’s debt, including a petition delivery at the G7 finance ministers meeting in Iqaluit, Canada tomorrow.
This morning’s announcement from the U.S. Treasury is a tremendous step forward to giving Haiti a real chance to recover from last month’s devastating earthquake. This momentum would not have been possible without ONE members. Thank you for all your hard work.
Here’s the U.S. Treasury Department’s statement in full:
SECRETARY GEITHNER VOICES SUPPORT FOR INTERNATIONAL DEBT RELIEF FOR HAITI, FINANCING OF RECOVERY THROUGH GRANTS
WASHINGTON – The U.S. Department of the Treasury today announced the United States will work with its partners around the world to relieve all debts owed by Haiti to international institutions and to ensure grant financing to support Haiti’s reconstruction and recovery from the devastating earthquake in January.
“The earthquake in Haiti was a catastrophic setback to the Haitian people who are now facing tremendous emergency humanitarian and reconstruction needs, and meeting Haiti’s financing needs will require a massive multilateral effort,” said Treasury Secretary Tim Geithner. “Today, we are voicing our support for what Haiti needs and deserves – comprehensive multilateral debt relief.”
Secretary Geithner also welcomed International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn’s call to provide full relief for Haiti’s outstanding IMF debt, including the $102 million emergency loan approved on January 27, 2010.
“We are committed to working quickly and closely with these institutions in a way that provides immediate grant assistance to help the Haitian people recover and rebuild,” Secretary Geithner continued. “I very much welcome the initiative taken on this issue by leaders in Congress, the IMF, and the MDBs and look forward to working with them to provide the critical support Haiti needs for recovery as well as to discussing this issue with my G-7 colleagues this weekend.”
Treasury announced that the U.S. intends to seek a commitment with other donors for the relief of Haiti’s debt to the Inter-American Development Bank (IDB), the International Fund for Agricultural Development (IFAD) and the International Development Association (IDA) in a manner that provides direct and immediate grant support to Haiti.
In September 2009, the U.S. concluded an agreement with Haiti that eliminated 100 percent of the Haitian Government’s outstanding debt to the U.S. This action was taken following Haiti’s successful completion of the Heavily Indebted Poor Country (HIPC) Initiative process in June 2009.
THIS CLOSE to 200,000
Our petition asking world leaders to forgive Haiti’s debt currently has over 197,000 signers– a truly staggering number. As we stand on the doorstep of a remarkable 200,000 signers, we’re also grateful for the support of– who else– the Barenaked Ladies who recently plugged the petition on their blog.
The immediate cancellation of Haiti’s near-$1 billion debt would give the country a chance for real and lasting recovery. Later this week finance ministers will be meeting in the Arctic Canadian town of Iqaluit where we plan on delivering our petition. Please forward this to your friends and family and help push us over the 200k threshold so that we can make the biggest impact possible.
Thank you for all you do.
Momentum builds to cancel Haiti’s debt
Momentum is really now building to cancel Haiti’s $1 billion debt and give the country a clean slate as it begins reconstruction efforts.
Since we launched our campaign we’ve seen real progress, which is giving us hope that we can help score a success.
According to reports, Venezuela now plans to cancel its share of the debt. As we’ve reported, Haiti’s debt to Venezuela is approximately $295 million. This is an enormous step forward in Haiti’s path to full debt cancellation. Announcing the cancellation, Venezuelan resident Hugo Chávez is reported to have said, “Haiti has no debt with Venezuela – on the contrary, it is Venezuela that has a historic debt with Haiti.”
Adding to the increasing volume of calls asking world leaders to forgive Haiti’s debt, Canada’s Finance Minister Jim Flaherty yesterday argued that given Haiti’s current focus and priorities, the country should not be burdened by “liabilities of its past.” Flaherty specifically called on others to follow Canada’s lead of debt cancellation.
All of this is very encouraging, but we still have much work to do. So our attention is now turning to governments directly, especially those attending the G7 Finance Ministers Meeting next week.
Thank you to everyone who has taken action so far. With your help we really are making a difference.
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About the Blog
The International ONE Blog is a daily log of the anti-poverty movement. The site is operated by ONE staff, with guest contributions from ONE volunteers, members and allies.
The content of each post and each comment represents the views of that author and does not necessarily reflect the views of ONE. ONE does not support or oppose any candidate for elected office, and any post expressing support or opposition for a candidate is not endorsed by ONE.
TAGS: Debt, Debt Cancellation, NGO Partners