JUBILEE SCOTLAND RESPONSE TO G8 DEBT DEAL

Well, the deal’s been done and the summit’s over, so what have we achieved? The G8 have not moved on their position since they first announced this deal in June and for now it seems we have to accept this half-baked conclusion, albeit with caution – until the deal reaches the World Bank/IMF meetings in September, the point which it faces the real test - implementation.

Yet there is hope to be taken from this deal even if it’s not a breakthrough. Multilateral Debts have been cancelled for 18 countries and for the first time the IMF debts have been included in a deal. Both these moves are a positive endorsement of what campaigners have been calling for over the past 10 years. But how does this balance against the rest of our demands that we believe would exit poor countries from the debt crisis?

• The key demand that goes alongside 100% debt cancellation is the demand for an end to harmful conditions attached. On this point there is huge disappointment that the final communiqué, mentioned little about ending the dubious relationship between debt cancellation and the hoops recipient countries have to jump through to be freed from economic slavery. In fact, the fear is that conditions are on the rise. (as reported by EURODAD: World Bank Conditions on the Rise)
• Debt cancellation must not come at the expense of existing aid budgets. For poverty to be truly tackled, 100% debt cancellation must be additional to the doubling of international aid commitments. This deal by the G8 is misleading, as nearly every dollar spent on debt relief will be taken from what would have normally been given to that country in aid.

The G8 have admitted that their package for Africa falls short of demands and expectations of the public, and for debt relief this is certainly the case. But for too long there has been a tendency for reactions to be laced with the same pessimism and despair. Against the scale of the problem, the G8 still have not been able to realise the radical and urgent action needed to end poverty- that real sacrifices from rich countries are needed to end the injustice of debt slavery. But for now, let us enjoy what fruits we have received from our labour and know that 100% debt cancellation is now a reality for the G8 to implement. Tomorrow we will continue to campaign for an end to harmful conditionality and ensure that all poor countries will benefit from the full debt cancellation that only a handful receive today.