It has been, and continues to be, a long journey toward cancellation of the unjust debt of the world’s most impoverished countries.   Step by step small advances have been made but there is much work to do.  Until now only 15% of poor countries’ debts have been cancelled.  These countries still owe more than $300 billion to rich countries, banks, and international institutions like the International Monetary Fund and the World Bank. [1]

One of the biggest reasons that very poor countries can not provide decent education and health care is because they are paying back their debt.  Many of these countries have paid back in interest more than they originally borrowed but have not yet been able to pay the principal.  For example, Nigeria, in the 1970’s borrowed $5 billion, the country has paid back $16 billion and still owes $32 billion on the same debt. [2]

The United Nations has estimated that for the fifth year in a row, there has been a phenomenon of a net reverse transfer of resources, that is, from developing to developed countries, reaching last year the dazzling figure of $250 billion.  In other words, the poorer countries, through their capital and dividend outflows, interest payments on the foreign debt, and earning shortfalls due to unfavorable trading opportunities, which is not offset by the much smaller inflows of aid and fresh capital, are actually helping to finance the growth of the richer countries.

The SEDOS Working Group on Debt is part of the world-wide campaign for cancellation of this unjust debt.  The working group has formed a coalition of more than 90 religious congregations who each year participate in a letter writing campaign, urging debt cancellation to the members of the G7 countries (Canada, England, France, Germany, Italy, Japan, United States of America) at the time of their annual summit.  The group also provides information on the SEDOS web page: www.sedos.org/debt.htm

SEDOS Working Group on Debt meets on a regular basis depending on the schedules of the members.  New members are welcome.  For further information, please contact: aratac@pcn.net