Debt Cancellation - July 2005

What the G8 Summit achieved

The G8 has done no more than confirm the proposed deal by the G8 Finance Ministers, cancelling some of the debt owed by some countries. The principle of cancelling 100 per cent of the debt owed to multilateral institutions is a positive step, and a tribute to the unceasing efforts of Make Poverty History campaigners and campaigners worldwide; but this debt deal is a small step compared to the giant leap that was called for.

While an important contribution, the G8 debt deal will provide less than $1billion this year - the equivalent of no more than one dollar per person in the countries that are due to benefit. It is an inadequate response to the global debt crisis, which needs an estimated $10 billion a year of debt cancellation to eradicate extreme poverty.

Major issues on debt remain unresolved - the damaging economic policy conditions attached to debt relief, the many indebted countries not on the list, debts not covered by the deal.

So there is much more work to be done - the deal is yet to be ratified and then it needs to be delivered. Our campaigners expect more and will be continuing to seek significant improvements and advances during the rest of the year.

For more information on the 18 countries who qualified for immediate 100% cancellation (plus the countries who are likely, or less likely to follow on), how cancellation works, who pays for it, ask for a 2 page leaflet prepared by Christian Concern for One World or visit www.ccow.org.uk. For further information see www.jublieedebtcampaign.org.uk