Press Release 18 March, 0:00 am (Mexican time)

 

Eyes of the Poor are on Monterrey - Governments, don’t be blind

European NGOs: Global Development Conference must seize opportunities to tackle insane debt situation in developing countries

  As a week-long global development conference opens today in Monterrey, Mexico, European NGOs see little chances that world leaders are prepared to go beyond an already decided outcome paper, widely critizised by civil society groups as well as governments and institutions for failing to address the crucial questions of poverty eradication and development financing. Hopes concentrate on the possibilities to further develop the few positive elements in the consensus paper. This regards in particular tackling the debt problem, which for many developing countries is at the root of continuous social and economic degradation.

  “In the Monterrey Consensus governments admit between the lines that the present debt relief programs are inadequate and that future programs should be based on giving indebted countries the chance to finance the Millennium Development Goals. We say, the future is now. Poor countries should repay debt only with what is left after they have financed the Millennium Goals”, says Martina Neuwirth of Jubilee Austria.

  In the Millennium Goals decided in the Millennium Summit in September 2000 governments commit, among others, to the halving of the number of the world’s poor, the cutting of child mortality by two thirds and universal primary education by 2015. According to the World Bank statistics, indebted countries in sub-saharan Africa in 2000 spent three times as much in debt repayment than for health programs. On aggregate, developing countries in 2000 spent 370 Bn USD in debt repayment. That is seven times the amount of official development assistance received in the same year.

  With the possibility of financial collapse in Argentina overshadowing the Monterrey conference, European NGOs welcome that the outcome paper acknowledges the need for new mechanisms to resolve debt problems before they become unmanagable and demand for more decisive conference commitments to enable indebted countries to use such mechanisms.

  “Argentina desperately needs a real solution to its external debt problem. The people there cannot keep paying and waiting with no hope”, says Jaime Atienza of Caritas, Spain, “We demand a neutral debt resolving arbitration that guarantees that the private sector, governments and international institutions share the losses, as they shared in the past the benefits.”

  European NGOs present in Monterrey will closely monitor the EU presidency’s stance on debt issues during the Conference. “Hopes in the Monterrey Conference have been alluded so far”, says Martin Koehler of the Campaign to Reform the World Bank, Italy, “if the rich governments don’t show more openness here to enable poor countries to realize the Millennium Goals, then they program for failure of the upcoming Johannesburg Summit on Sustainable Development. We will hold them responsible.”

  Further information: Mr. Martin Koehler, Tel from Monterrey 04481 80988160, Tel from Europe +5281 80988160, Mkoehler@crbm.org

 


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