wfn.org | (LWF) LWF Tenth Assembly: External Debts to DevelopingCountries

["Frank Imhoff" <franki@elca.org>]

LWF Tenth Assembly, Winnipeg, Canada, 21-31 July 2003

PRESS RELEASE NO. 35

LWF Tenth Assembly: External Debts to Developing Countries Should Be
Cancelled
Call for International Mechanism toward Justice-Oriented Debt Management

WINNIPEG, Canada, 31 July 2003 * The Lutheran World Federation (LWF) has
asked International Financial Institutions to acknowledge that part of the
debt given to developing countries is illegitimate and odious. "The debt is
the responsibility of the creditors and has to be cancelled," the LWF Tenth
Assembly said in a public statement here July 30.

The Assembly noted that the debt burden had increased and was a major barrier
against poverty eradication and fulfillment of basic human rights for all.

In the statement, the highest decision-making body of the LWF noted that the
present financial external debt could only be understood if seen in
relationship to the historic exploitation of colonialism. "External debt has
in fact become a modern tool for domination," the Assembly stated.

"Moreover, research has shown that substantial parts of the external debts of
countries in Asia, Africa, Latin America and the Caribbean are illegitimate.
Loans were freely offered to illegitimate and undemocratic governments which
then contracted these loans. In many cases, the contracted debt was misused
or diverted, both by illegitimate and legitimate governments. Only a minor
part has been actually used for social development," the Assembly noted.

The Assembly called on LWF member churches to challenge commercial banks,
which are or have been involved in illegitimate lending to take thei
responsibility and cancel their claims.

The Tenth Assembly underlined the need to develop mechanism at an
international level that would help establish a justice-oriented debt
management. "This mechanism should ensure full and active participation of
indebted countries, securing that the lenders take their responsibility," it
noted. 

The Assembly urged the LWF to advocate for trade and development policies
that uphold the objective of enhancing human well-being to which the
international human rights instruments give legal expression.

This requires the LWF to initiate an international campaign involving member
churches, communities and individuals, and promote access to basic goods and
services. "In particular the LWF was urged to promote trade and development
policies, which secure access for all to safe water, adequate nutrition,
shelter, healthcare including medication and primary education, noted the
statement.

Further, the LWF churches were encouraged "to hold international financial
institutions, governments and corporations accountable to respect these
fundamental human rights."

The Assembly urged the global communion of Lutheran churches to continue
campaigning with individual governments to ensure access to treatment,
medicines and public health programs for people living with HIV/AIDS and
other diseases, specifically as they concern Trade Related Intellectual
Property Rights (TRIPS), trade rules and the responsibility of governments to
ensure that these health requirements are provided.

The Tenth Assembly of the Lutheran World Federation (LWF) is taking place
21-31 July 2003 in Winnipeg, Canada, under the theme "For the Healing of the
World." It is being hosted by the Evangelical Lutheran Church in Canada
(ELCIC).

There are around 820 men, women and youth participants in the Tenth Assembly
including 380 delegates from the 133 churches with full membership and three
associate members. The Assembly is the highest decision-making body of the
LWF, and meets normally every six yars. Between Assemblies, the LWF is
governed by its Council that meets annually, and by its Executive Committee. 

Further information including photos, video and audio news, is posted on the
Assembly Web site www.lwf-assembly.org

To order photographs, please contact LWF-Photo@lutheranworld.org

*	*	*

The LWF is a global communion of Christian churches in the Lutheran
tradition. Founded in 1947 in Lund (Sweden), the LWF now has 136 member
churches in 76 countries representing over 61.7 million of the 65.4 million
Lutherans worldwide. 

The LWF acts on behalf of its member churches in areas of common interest
such as ecumenical and interfaith relations, theology, humanitarian
assistance, human rights, communication, and the various aspects of mission
and development work. Its secretariat is located in Geneva, Switzerland.