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Debt

David Gwemani monitors the effects of IMF-designed Structural Adjustment Programmes in Zambia [Gideon Mendel]

Debt cancellation needs to go further – 100% should mean 100% for all governments and institutions, more poor countries should get debts cancelled, and debt relief should not be tied to economic conditions

Poor countries were offered loans by rich countries' banks and governments during the 1970s.

When interest rates soared in the 1980s, debts grew, and countries had to pay with money that should have been used for healthcare and education.

Lenders also attached damaging conditions to debt relief, such as forcing cuts in public spending and demanding that key services be privatised.

Financing debt relief

The Heavily Indebted Poor Countries initiative (HIPC) launched in 1996, and was expanded following the 1999 G8 Summit with pledges of $100 billion.

A further $50 billion was pledged at the Gleneagles G8 summit in 2005, and many creditors (including all G7 countries) agreed to cancel most debt owed by the HIPC countries, and other low-income countries as well.

G7 finance ministers have now agreed to the principle of total debt cancellation of multilateral debts - those owed to the World Bank, IMF and African Development Bank - by an initial set of poor countries, but not yet all.

Catholic leaders from around the globe lobby the G8 in 2007.

G8: No more empty words

CAFOD calls on G8 leaders not to "water down" their promises to the poorest in the world

Campaigners from Sheffield outside St Chad's Cathedral, Birmingham

Ten years on - debt campaigners return to Birmingham

Campaigners from across the UK returned to Birmingham on 18 May to mark ten years since a ‘human chain’ of 70,000 people encircled the city calling for debt cancellation. What difference had that day made to them?

Edmond Naim and his family recieved food and a hygiene kit from CAFOD's partner Caritas Lebanon. He has also recieved a loan to get his peach and apple farming business back up and running. [David Snyder]

Time to look forward not back

CAFOD and its partners are helping people in Lebanon one year after the war by providing small loans to help farmers like Naim recover financially after the war destroyed his crops

Chellema outside her thatched, palm-leaf house which was frequently damaged during the monsoon season, south east India, October 2006. [Noel Gavin]

India: Better life three years on

Before the tsunami, Chellema was living in a small house made of palm leaves that was frequently damaged by monsoons. Now she has moved into a larger brick house with her family

More than three million people in Colombia have been forced to flee their homes during decades of fighting between guerrilla groups, paramilitaries and the army - the highest number of displaced people in the world after Sudan [CARITAS Colombia/CAFOD]

Support our partners in their struggle

CAFOD has repeatedly asked the UK government to press the Colombian authorities to publicly defend human rights. Please support this call to action and the work of our partners in Colombia by emailing your MP now.

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