EPPN ALERT: PARTICIPATE IN SEPTEMBER 1 CALL-IN DAY FOR INTERNATIONAL DEBT RELIEF

When the leaders of the nation�s richest countries met earlier this year in Sea Island Georgia, they considered a proposal to provide 100% cancellation of multilateral debt for impoverished nations. Though they failed to take action at the June summit, the leaders directed their finance ministers (aka �the G-7�, a group which includes the US Treasury Secretary) to consider additional measures in the coming months. Their next meeting will take place on October 1, 2004, just before the Annual Meetings of the IMF and World Bank in Washington, DC.

Debt cancellation is desperately needed.  This year alone, countries on the African continent will send an estimated $15 billion in debt service to the IMF, World Bank, and wealthy creditor nations.  That money would be far better spent addressing the needs of the people, including fighting HIV/AIDS, putting kids back in school and ensuring that their population has access to clean and safe water.

The Bush Administration has not yet publicly committed to pushing for 100% debt relief at the finance-ministers meeting in October.  Administration officials need to hear from the American people that the time for full debt relief has come.  Wednesday, September 1, has been designated as a call-in day for supporters of debt-relief to make their voices heard.

WHAT YOU CAN DO

This Wednesday, September 1, call the White House (202-456-1414) and the US Treasury Department�s Office of the Undersecretary for International Affairs (202-622-0656).  Urge President Bush and the Treasury Department to support 100% cancellation of debts owed by impoverished nations to the World Bank, IMF, and other multilateral financial. Encourage the Administration to use US leverage to build consensus for 100% debt cancellation, and to announce support for 100% cancellation at the G-7 Finance Ministers meeting on October 1.

State clearly that you support 100% cancellation of multilateral debt (IMF, World Bank, regional development banks) for all impoverished nations, without harmful economic policy conditions attached.

ADDITIONAL BACKGROUND

• Initial debt relief has proven to be extraordinarily effective as nations put the released funds towards fighting AIDS, putting kids back in school and ensuring that their population has access to clean and safe water. With initial debt relief health care and education spending has risen by between 40-90% in eligible countries.
• Despite these successes, more needs to be done if impoverished nations are going to be meet Millennium Development Goals or have a prayer of addressing the global AIDS crisis that claims the life of an African child every minute that passes. The IMF and World Bank are the largest creditors of the most impoverished nations. The United States should take the lead in pushing these institutions to cancel 100% of the debts owed to them by the most impoverished countries.
• The debt-relief proposal considered at the Sea Island summit earlier this year would lift the burden of decades-old debts, while promoting transparency, better fiscal management, and poverty reduction in the world�s most impoverished countries.   These are fundamental principles of debt relief and should frame the discussion at the G-7 finance-ministers� meeting on October 1.
• The Scriptures teach us that we must work for reconciliation in the world and to build right relationships with our brothers and sisters.  The 1994 General Convention (affirmed by the 1997 and 2000 Conventions) directed the Episcopal Church to seek to �implement the biblical imperative of debt forgiveness by: participating in the development of sound financial plans for the reductions and cancellation of debts owed by the poor in our own society.�