
Issue No 53		12 May 2000

LaborNET	Ask Neale	Tool of the Week

Economics

Petition to Move a Mountain

By Thea Ormerod - Jubilee 2000

A child born in Zambia or Tanzania or Bolivia owes more to international creditors than she or he will ever earn in a lifetime.

In this way a billion people are buried under a mountain of debt they can never pay back. Although they have repaid the original value of the loans almost three times over they remain more than three times more in debt than in 1980. Yet by Northern standards the mountain is not enormous. The total debt owed by the 52 poorest countries is around $340 billion, or one-tenth of one day's international currency trading.

Jubilee 2000 is a broad based coalition seeking to remove the mountain. It's supporters range from Bono of U2 and Bob Geldolf, to the ACTU, to Friends of the Earth, to economists like Jeffrey Sachs, right through to the Pope.

The origin of the debt crisis was in the lending spree of the Banks in the 1970's. This ended with billions in Swiss Bank accounts, white elephant projects such as the Philippine Bataan Nuclear Power Plant which was built in an earthquake zone, and 22% spent on arms used to keep in line the very people who are now being required to pay the money back. The Banks were bailed out by Northern governments which have continued to insist on repayments, largely through the International Monetary Fund.

The Fund offers meagre debt relief to poor country governments only if they follow strict conditions. They must privatise public services, introduce user pays systems in hospitals and schools, discontinue agricultural and food subsidies, lower tariffs, and the like. The result? Zambians are eating 20% less of their staple food than they were ten years ago. In impoverished countries generally fewer children attend school and unemployment and infant mortality rates are increasing. UNICEF estimates that 7 million children die each year as a result of the debt crisis. Development is being thrown into reverse.

Jubilee 2000 is an international campaign to free the 52 poorest countries from this debt to give them a fresh start to the new millennium. The campaign also calls for ways of ensuring that the money released is used to alleviate poverty. Although many dictators have now been replaced by fledgling democracies, corruption remains an issue. The issue is being addressed, but without debt cancellation as a first step governments can't even begin to improve the lot of the poor.

A global petition with 17 million signatures was presented at the G7 summit meeting last year between the leaders of the world's creditor nations. This and intense lobbying has led to a string of grand promises of debt cancellation which have as yet not translated into much action. The pressure needs to be kept up.

Jubilee 2000 is seeking more signatures to make the petition the largest ever, and invites people and grassroots organisations to write letters, etc, to add to the push to move the mountain of debt. For further information call the Jubilee 2000 Campaign office on (03)9815-1677.

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Issue 53 contents

Interview: The Fruitful Shaw
After ten years in Parliament, NSW Industrial Relations Minister Jeff Shaw looks at some mountains still to be climbed.

Politics: Budget in Reply
Opposition Leader Kim Beazley replies to the Federal budget and paints Labor's alternative vision for the future.

Economics: Petition to Move a Mountain
A child born in Zambia or Tanzania or Bolivia owes more to international creditors than she or he will ever earn in a lifetime.

International: Solidarity in a Cold Climate
After an overnight bargaining marathon, Norway's unions have secured most of their main demands and have now ended their nationwide strike.

Health: Workers Health Centre Comes of Age
In 2001, the Workers Health Centre will celebrate its 25th anniversary, making it the longest running independent trade union based health and safety service in the country.

History: A Tribute to the Fallen
A Canadian tractor operator is seeking help to produce a book on monuments to people killed in the workplace.

Satire: Ralph Web Ring Busted
Following the dismissal of 27 Telstra employees last week for downloading hardcore pornography on their work computers, Ralph magazine sacked five employees yesterday for downloading positive images of women.

Review: Waterfront - Through the Reporters' Eyes
Fairfax journalists Helen Trinca and Anne Davies have skillfully transformed the waterfront war into the sort of thriller that any self-respecting Hollywood mogul would reject for being too wild to be true.

» Costello Backs National GST Pay Claim

» Conference Call: Support the NSW Way

» Games Rail Service in Limbo

» Shaw Moves on Email Protection

» Salami Reform: Reith Chops Up the Nasties

» Advocate in Trouble Over Rural Sackings

» Unionists take to Streets for May Day 2000

» Shareholders Rattle Rinto Tinto Cage

» Joy Dispute Widens With Midnight Run

» Employers Fail to Defy History

» Indonesian Labor Educator Reports to Local Unions

» Big Drum-Up This Wednesday