wfn.org | Re: LWI 2008-073 Lutheran Leader Hanson Insists Church Voice Must Be Heard in Complex Situations

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Lutheran Leader Hanson Insists Church Voice Must Be Heard in
Complex Situations
Seeking Alliances with Other Stakeholders Is a Crucial Strategy

OSLO, Norway/GENEVA, 24 October 2008 (LWI) -  Faith-based
organizations such as the Lutheran World Federation (LWF) and
their leaders must not relent on their unequivocal responsibility
to agitate for multilateral solutions that ensure fair and just
lending and borrowing practices globally. LWF President Bishop
Mark S. Hanson made these remarks in the context of the
international consultation on illegitimate debt, held 21-23
October, in the Norwegian capital, Oslo.

"We must recognize the complexity of issues without allowing
their complexity to immobilize us. We must not lose our voice,"
said Hanson, relating the current global financial crisis to the
LWF co-organized International Symposium on Illegitimate Debt. 

Hanson is presiding bishop of the 4.7-million-member Evangelical
Lutheran Church in America.

The over 60 representatives of church bodies, governments,
international and regional financial institutions, United Nations
organizations and civil society movement sought to jointly
formulate practical approaches for further political and legal
action on illegitimate debt. 

Speaking to Lutheran World Information (LWI), Hanson underlined
the mandate of the 2003 LWF Ninth Assembly, urging the LWF to
prioritize illegitimate debt cancellation through actions that
move beyond the economic viewpoint, and integrate instead a
broader approach based on moral, ethical and legal obligations.
"We [church leaders] must always ask the questions: 'At whose
expense are profits being made? 'What will be the long-term
impact for people who live in poverty?' And, we must hold
governments accountable," he said.

Seeking alliances with other stakeholders remains an important
LWF strategy, as the global Lutheran communion on its own would
not have the expertise to move to public discourse crucial issues
such as the debt crisis. "This symposium is our ability to
convince others - lawyers, economists and policy makers - that
solutions to the illegitimate debt crisis will depend on our
capacity to push together for concrete steps," said Hanson. 

>Exemplary Initiatives

He noted the model to have one LWF region take up leadership of
an issue, as is the case with the Latin American region on the
debt program, helps the other LWF regions to contextualize the
implications for their own contexts.

Hanson moderated a panel dialogue, 22 October, during which the
Norwegian Minister for Environment and Development Mr Erik
Solheim and Ecuador's Attorney General Mr Washington Pesantez
Munoz presented their respective governments’' initiatives on
sovereign debt, hailed at the symposium as successful role
models, which should also be built into the framework of global
policies through organizations such as the United Nations
Conference on Trade and Development, and international financial
institutions including the World Bank and International Monetary
Fund.

Solheim elaborated Norway's decision in 2006 to cancel
unilaterally the outstanding debt of NOK 520 million (USD 72
million) owed by Ecuador, Egypt, Jamaica, Peru and Sierra Leone
as a result of the 1976-1980 Norwegian Ship Export campaign
involving 156 vessels and equipment. Pesantez explained further
the process of the national Commission for the Complete Auditing
of Public Debt (Comision para la Auditoria Integral del Credito
Publico - CAIC), set up in 2007 to look into the legality and
legitimacy of the country’s external debt between 1976 and 2006. 

Responding to comments from the floor, Solheim emphasized any
loan acquisition process as fundamentally a two-way process
entailing responsibility on the part of the lender and borrower.
He challenged civil society in other countries to put pressure on
their governments to ensure broader action on foreign debt
cancelladefinition of illegitimate debt, it was obvious urgent action was
needed especially in cases whereby the debtor could not honor
obligations as a result of financial or political crises with
serious consequences for the country's people, he said. 

Pesantez explained that although CAIC's report had not been
officially released, he expected its findings on irregular
re-negotiation of credits and government failure to protect the
rights of its citizens, would encourage other countries to carry
out similar audits. "We are not questioning our obligation to
repay debt, we are seeking solidarity" in determining the
legitimacy, transparency and efficiency of indebtedness, he
emphasized. (687 words)

>*        *          *

(The LWF is a global communion of Christian churches in the
Lutheran tradition. Founded in 1947 in Lund, Sweden, the LWF
currently has 141 member churches in 79 countries all over the
world, with a total membership of over 68.3 million. 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.)

[Lutheran World Information (LWI) is the LWF's information
service. Unless specifically noted, material presented does not
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