Africa: Africa Action Condemns G-7 Inaction on Debt Cancellation
Lobby group Africa Action this week expressed outrage at the failure of the Group of 7 (G-7) Finance Ministers to make progress on the critical issue of debt cancellation in their meeting last weekend. Salih Booker, Executive Director of Africa Action, said: "Combined with the recent appointment of Wolfowitz to the World Bank, this delay on debt cancellation is outrageous. In 2004, more than 2 million Africans died of AIDS. Yet, African countries are forced to spend almost $15 billion each year repaying old, illegitimate debts to rich country creditors."
Africa Action Press Release
FOR IMMEDIATE RELEASE
Contact: Ann-Louise Colgan (202) 546-7961
Africa Action Condemns G-7 Inaction on Debt Cancellation
U.S. Treasury Backtracks on Earlier Commitments;
Continued Delays on Debt Crisis Cost Millions of Lives Disagreements
Monday, April 18, 2005 (Washington, DC) – Africa Action this morning expressed outrage at the failure of the Group of 7 (G-7) Finance Ministers to make progress on the critical issue of debt cancellation in their meeting last weekend. The statement released by U.S. Treasury Secretary Snow indicates a reversal of earlier commitments to 100% debt cancellation, and Africa Action today condemned the repeated failure of the U.S. and other wealthy creditors to take decisive action on the debt crisis in the world’s most impoverished countries.
Salih Booker, Executive Director of Africa Action, said today, “Combined with the recent appointment of Wolfowitz to the World Bank, this delay on debt cancellation is outrageous. In 2004, more than 2 million Africans died of AIDS. Yet, African countries are forced to spend almost $15 billion each year repaying old, illegitimate debts to rich country creditors. The albatross of illegitimate debt continues to drain the coffers of African governments. This is immoral and the repeated failure of the G-7 to cancel Africa’s illegitimate debt is criminal.”
Ann-Louise Colgan, Director of Policy Analysis and Communications at Africa Action, said this morning, “In February, the G-7 Finance Ministers agreed in principle on up to 100% debt cancellation for more than 40 countries, but this weekend’s statement reveals no progress toward this goal. The U.S. Treasury now indicates it will not consider IMF debt cancellation or IMF gold sales, essentially backtracking on its earlier commitments. Every further delay on this issue costs thousands of African lives.”
Marie Clarke Brill, Director of Public Education & Mobilization at Africa Action, said this morning, “Activism in Africa and other impoverished regions, as well as in G-7 countries, forced the issue of debt cancellation onto the creditors’ agenda. Given the G-7’s apathy on this matter, the gloves will be off once again. We will continue to press for an urgent and just solution to the debt crisis.”
Recent discussions over how debt cancellation can be financed have been described by Africa Action as a “diversionary tactic”, given the demonstrated ability of the World Bank and IMF to afford debt cancellation from their own resources. A recent IMF report on the option of IMF gold sales, submitted this weekend to the G-7 meeting, reveals once again how this institution can afford to sell its gold and cancel the debt without negatively impacting gold prices on the world market.
Africa Action continues to note the devastating human toll of creditor delays on debt cancellation and continues to demand immediate 100% debt cancellation for all African countries without harmful conditions.