Mayor calls for fresh initiative on third world debt

Ken Livingstone, Mayor of London, condemned creditors' response to the debt crisis as "pitifully inadequate" yesterday (14 September) and called on the leaders of the richest nations to act to cancel the debt burden of the world's poorest countries.

Mr Livingstone made the comments in a speech to the Commonwealth Local Government Conference held in London. He pointed out that if developing nations were relieved of foreign debt payments, £3 billion per year in additional resources would be available to local government in these countries. Debt cancellation could help reduce poverty as local government in the developing world plays a vital role in providing services such as health care and clean water.

The Mayor called on the creditors to take four actions:

1. Carry out their obligations agreed at the Cologne Summit in June 1999
2. Ensure all creditors pledge 100% cancellation
3. Open the process of debt cancellation to countries not covered by the Heavily Indebted Poorest Countries agreement, such as Bangladesh and Jamaica
4. Urgently review the process for dealing with debt and lending.

Mr Livingstone pointed out that as mayor of London, he represents large communities whose families and friends are directly affected by the burden of debt in developing nations. He appealed to his counterparts in such cities as New York, Paris, Berlin and Tokyo to press their governments in a similar way.

Ken Livingstone's support reflects widespread support for Jubilee 2000 by city councils around the world. Jubilee 2000 has been endorsed by the cities of Bristol, Manchester, Edinburgh, Glasgow, Birmingham, Rome, and now London.

• Full speech by Ken Livingstone