wfn.org | Congress passes debt relief measure to aid poor countries

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Congress passes debt relief measure to aid poor countries

     (ENS) Against long political odds, Episcopal, Catholic and 
Protestant churches in the U.S. came together and successfully 
pushed a legislative package through Congress to provide debt 
relief for poor countries.  "We haven't seen this sort of push 
from the churches since the anti-Apartheid movement," said Thomas 
H. Hart, director of government relations for the Episcopal 
Church.  

     Late on the night of November 15, congressional and White 
House negotiators overcame lingering disagreements on how to let 
the International Monetary Fund (IMF) cancel some of its loans to 
poor countries. The deal finalized one of the few remaining 
issues in federal budget negotiations, paving the way for 
Congress to adjourn.

     The agreement allows the IMF to revalue part of its gold, 
releasing a profit of more than $2 billion to fund debt relief 
for the world's poorest nations. The IMF is permitted to use most 
of that profit now, but will need further Congressional 
authorization next spring to use the rest. In return, the IMF 
agreed to make information about its dealings more open and 
available to Congress. 

     The revaluation required Congressional approval because the 
gold is owned by the U.S. and other members of the IMF.

     "The odds were against us," Hart said.  "We faced budget 
constraints, public cynicism, congressional resistance to foreign 
assistance, a complex international financial subject--not to 
mention that, on its surface, canceling debts is a tough sell."  
All of these challenges were present amid the common perception 
that the mainline churches have been in decline, both in 
membership and influence. "This is an important demonstration of 
what we can do," Hart continued.  

     Supporters of debt relief on Capitol Hill particularly noted 
the work of the Episcopal Church.  "The Episcopal Church was a 
key organization in this effort, effectively translating the 
Biblical vision of Jubilee into workable public policy and 
achieving real results on behalf of poor people around the 
world," said U.S. Rep. Jim Leach, a Republican from Iowa and lead 
sponsor of debt relief legislation.  "As an Episcopalian, I am 
particularly grateful for our church's leadership in securing 
congressional approval for debt relief."

     Sen. Joseph Biden, ranking Democrat on the Senate Foreign 
Relations Committee and a cosponsor of debt relief legislation, 
concurred. "I applaud the efforts of the Episcopal Church and the 
many organizations who came together to raise and move this issue 
before the Congress and Administration, particularly in a very 
difficult political environment," Biden said the morning 
following passage of the bill.

     "Of course, there is still work to be done," Hart explained.  
"Congress hasn't yet made a U.S. contribution to write down some 
multilateral debts held by regional development banks."  But, the 
current deal includes money to write off the debts owed directly 
to the U.S., approval for the IMF to use gold and some 
contingency accounts for debt relief, and a mandate to direct the 
relief to the poor in an transparent and accountable way.  
"Getting three out of four isn't bad," Hart concluded.  

     Most analysts predict this package will be enough to set in 
motion an international agreement among the Group of Seven--the 
largest industrialized countries--and other creditor nations to 
leverage nearly $90 billion in debt relief to the world's poorest 
countries. The U.S. holds only 3 percent of all poor country 
debt.

     The Episcopal Church worked closely with the U.S. Catholic 
Conference, Oxfam America, Bread for the World, and Church World 
Service to move this initiative on Capitol Hill.