Voices from the South – a reflection by Pat Rumer, World Social Forum

“Is unconditional debt cancellation possible?

One of the most challenging issues facing the Jubilee global movement is the call for 100% cancellation of the debt without “harmful conditions.” These harmful conditions are the Structural Adjustment Programs of the IMF that debtor nations are required to adopt in their domestic economies BEFORE they can qualify for any form of debt relief. The topic of conditionality was on the agenda of one of the Debt workshops with South and North speakers.

Alejandro Bendana, a Nicaraguan founder of Jubilee 2000 in Latin America, observed that a victory (like the 2005 debt deal at the G8) presents new problems. Jubilee campaigners say debt cancellation and the G8 and international financial institutions (IFI’s) talk about debt relief. The terms of the debate are constantly changing and Jubilee campaigners need to follow the discourse. Since 2005 the IFI’s have focused on anti-corruption measures imposing new conditions on debtor nations to ensure “transparency and accountability.” However, the transparency and accountability demands do not apply to the lenders, the World Bank, IMF and regional development banks.

Alejandro challenged Jubilee movements in the North to not buy into the anti-corruption arguments but instead to support the ethical principle that all nations have the sovereign right to determine their own political and economic futures. If the people of Nicaragua or any other debtor nation demand transparency and accountability from their government, their actions support and strengthen democracy. If the IMF and WB impose anti-corruption conditions, it reinforces a colonial “the North knows best” mentality.

As a panel member and a Jubilee USA campaigner, I said that I have encountered people who decry the corruption in African and Latin American nations and believe that it is only realistic to require anti-corruption measures. In a recent conference in Honduras on external debt and the internal debt cancellation process after 2005, Hondurans were quite open about their struggle to realize the benefits of debt cancellation. If Jubilee South rejects lender-imposed conditions, is there a role for Jubilee northern movements to work with Jubilee South to ensure that the funds (cancelled) reach the poor? There is no easy answer to my question. Both North and South campaigners affirm the need to long-term education in our societies to understand the power imbalance between North and South while working to achieve a more just and equitable economic systems.

After the workshop I reflected on the Leviticus passage as well as the Lord’s Prayer. Both parts of the Bible talk about Cancellation or Forgiveness of Debts. Debts are to be forgiven every seven years, the Sabbath year, but there is no mention that debts are only to be cancelled if the debtor proves how he will spend the money. In the Lord’s Prayer Jesus prays, “Forgive us our debts as we forgive our debtors.” The biblical vision is for “unconditional debt cancellation.” Are we able to live out this visionn?