wfn.org | WCC Assembly - Debt Forgiveness

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National Council of the Churches of Christ in the 
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134NCC12/18/98       FOR IMMEDIATE RELEASE

WCC ASSEMBLY ISSUES IMPASSIONED PLEA FOR DEBT 
FORGIVENESS

HARARE, Zimbabwe ---- Among themes running through 
the World Council of Churches' 8th Assembly was the 
need to forgive the external debt of the world's 
poorest, most indebted countries and substantial debt 
reduction for severely indebted, middle-income 
countries.

Delegates approved a new policy, which declares, 
"Debt bondage by the poorest countries to western 
governments and creditors is today's new slavery.  The 
accelerating concentration of wealth for a few in the 
richest countries and the devastating decline in living 
standards in the poorest countries calls for correction 
along the lines of the ancient Sabbath and Jubilee 
cycles."

The policy analyzes the "devastating cycle of debt 
accumulation" and how it forces debtor nations to cut 
spending on education, sanitation, clean water and 
health care and reorient their economies to cash crops 
such as coffee, cocoa and carnations as opposed to 
staple foods.

Recommendations are tough both on lenders and 
borrowers.  "We need new, independent and transparent 
structures for governing relations between debtors and 
creditors," it says.  "In particular, we need a new 
just process of arbitration for international debt 
cancellation, which insures that losses and gains are 
equally shared."

Mechanisms must be put in place "which not only 
satisfy requirements for economic efficiency, but also 
for the protection of basic human needs and rights as 
well as the environment.  When funds are released 
through debt cancellation or other relief measures," it 
continues, "civil society organizations must be enabled 
to take part in determining how monies are reallocated 
for social priorities."

Tough conditions should be imposed on debtor 
governments, but these must not be prerequisite for 
debt cancellation, the policy says.  They must be 
determined and monitored by local community 
organizations, including churches and other 
representatives of civil society.

Debt relief was a theme in many plenary addresses 
during the Assembly, and of a number of "Padares" 
("meeting place" in the Shona language).  About 200 
persons attended one such hearing, and heard 
impassioned arguments for cancellation from both Africa 
and Europe.

Alison Wilkins, a Methodist Church delegate from 
Britain, representing the youth, commented that "it's 
practically impossible to spend a day in Britain 
without the force of consumerism hitting you from 
billboards, advertisements, even your food, drink and 
clothes.  Some of these commodities come from Europe 
and America.  Some come from children working to 
support their families, making things for export.  
Taxes are paid and so much goes for debt repayment that 
precious little is left for sanitation, health care, 
education....

"I have contributed to the exploitation of a 
country, a people, another 23-year-old woman somewhere.  
But it's unproductive for me to feel guilty.  It's 
better for me to get angry....As young people at this 
Assembly, we have spent much time discussing the debt 
crisis and have heard its effects on our friends.  We 
see debt cancellation as the first step.  We have had 
enough.  We don't want to live in systems that 
dehumanize us and go against Jesus' vision.  Earth will 
not sustain our lifestyles."

People wanting change must "be prepared," she 
said.  "The rich will become less rich and the poor 
much less poor."  And in the event that indebted 
countries declare, "Can't pay, won't pay," Wilkins 
said, "we must support them or they will be hit by 
sanctions and embargoes and their children will die."

Archbishop Walter Makhulu from Botswana addressed 
demands both to individuals and systems in the North 
and to governments of indebted countries. "Cancellation 
is the first step toward the liberation of the poor.  
We should look ahead at how we affirm the poor.  We can 
only affirm the poor by the eradication of poverty.  If 
those who govern plunder the coffers of our nation, we 
must exercise our vote to make them accountable and 
transparent.  The days governments negotiate huge loans 
without consulting the nation must come to an end.  
Loans must go only with the approval of Parliament."

Distinguishing between "human" and "divine" 
globalization, he said the former "insists on 
privatization, currency devaluation, reduction of 
government subsidies and trade deregulation....

"I hope those of you with money will think about 
how you can invest responsibly," the archbishop said.  
"Some companies are merchants of death and instruments 
of exploitation.  They retard others' growth for their 
own profit.  Retail buyers, are the people you are 
buying from getting a decent return?  Are they paying 
their people a fair wage?  Debt is about the poor 
subsidizing the rich, the poor eking out an existence 
when they could live if others lived more simply.

"We must agitate for the cancellation of debt," he 
concluded.  "Then we will rediscover the divine 
globalization of community, generosity, sharing and 
mutual caring."

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