A Global Call to Action Against Poverty has been launched to press rich countries to completely cancel debt that has in most cases compromised economic and social development of poor countries.

According to Action Aid International, a member of the Global Call to Action Against Poverty (G-CAP) Coalition, Zambia and Malawi for instance face increasing demands in debt repayments each year.

A report by Action Aid International, presented at the 5th World Social Forum, reveals that in Zambia, debt repayments to the International Monetary Fund (IMF) alone cost US$25 million per annum. This is significantly higher than the budget for education in a country where 40 percent of rural women and children are unable to read and write.

Zambia owes the international community about US$6.7 billion, although the IMF has pledged reduction of the amount after the country meets targets for the Highly Indebted Poor Countries (HIPC) Initiative later this year.

In Malawi, more money is spent on servicing the country’s debt than on health, despite nearly one in five Malawians being HIV positive, according to the Action Aid report.

Launching the G-CAP, Brazilian President Luis Inacio Lula da Silva called for the rich and powerful countries to take responsibility for their promises and increase aid directed towards the achievement of the priorities of developing countries.

G-CAP is a coalition of national and international civil society groups uniting to take action in 2005 against what they call “the scandal of global poverty”. This coalition is braced to bring tangible results this year.

The G-CAP has identified the G8 meeting of world leaders from rich countries in Britain in July 2005, the United Nations review of the Millennium Development Goals (MDGs) Summit in September, the World Trade Organization (WTO) Ministerial meeting at the end of the year, and the Blair Commission for Africa as unique opportunities for real action to tackle poverty and injustice.

Recent United Nations reports show that the internationally agreed targets for poverty reduction, such as the MDGs will not be achieved without full debt cancellation for the poorest countries, especially those in southern Africa. The year 2005 must be remembered as the year that changed the world said Henry Malumo, Coordinator of the Zambian Civil Society Committee on the MDGs.

The Porto Alegre meeting noted that for over 20 years, the IMF, World Bank, and the WTO have forced poor countries to implement a wide range of economic and social reforms in return for low interest loans which do not serve the interests of developing countries.

The New Partnership for Africa’s Development (NEPAD) is seen as a pre-cursor to solving massive debt owed by developing countries. Similarly, inter-governmental linkages between civil society organisations and governments are vital, said Asha-Rose Migiro, Minister of Community Development in Tanzania.

Speaking during the launch of another global initiative, the Citizens Global Platform, Magiro said there is need for regional partnership initiatives, such as NEPAD, to bring in the silent and marginalized groups that are sidelined in political decision-making.

Social activists at this year’s forum also discussed the issue of debt in the face of the tsunami disaster that hit several Asian and African countries on 26 December 2004.

Delegates expressed their deepest sympathy to the tsunami victims. They expressed concern that in the face of this massive destruction, northern and international creditors should not continue to hold the South in bondage for the debts that have contributed to their impoverishment.

Some social activists noted that it is now one month after the tsunami, but there has not been adequate response from the world´s richest nations and the international financial institutions that they control.

Africa’s debt is estimated at US$540 billion with debt expenditure accounting for 70 percent of its Gross Domestic Product (GDP). The Forum called on the debtors to convert at least US$15 billion that Africa owes to fight against the HIV and AIDS pandemic.

Instead of prioritising debt servicing, African countries need to be given an opportunity to concentrate on rehabilitation, provision of clean water and other human development programmes.

According to Jubilee South Debt Campaign, to date, an estimated total of only US$6 billion in financial aid has been promised by the G8 countries. This is a drop in the ocean compared to the US$400 billion set aside as the annual US military budget and the nearly US$200 billion that the US and the UK have spent so far on the Iraq war.

Jubilee campaigners also allege that the relief package is insignificant compared to the profits that the IMF, the World Bank, the Asian Development Bank and Northern governments have made from loans to the South. (SARDC)

Southern African News Features offers a reliable source of regional information and analysis on the Southern African Development Community, and is provided as a service to the SADC region.

This article may be reproduced with credit to the author and publisher.

SANF is produced by the Southern African Research and Documentation Centre (SARDC), which has monitored regional developments since 1985