Philippine Jubilee 2000 forms human chain around ADB meeting

Over 500 people gathered in a human chain at the Opening Session of the ADB Board of Governors meeting in Manila on April 30th. The event formed part of global chain reaction events which are building up pressure on the creditors in advance of the G8 Summit on 19th June in Cologne.

The human chain was primarily led by the Philippine Jubilee Network and was supported by the Philippine-Asia Jubilee Campaign Against the Debt (PAJCAD) and the Freedom from Debt Coalition.

The ADB Board of Governors was holding its 32nd annual meeting in Manila from April 30-May 2. The aim of the meeting was to review the economic and financial performance of its member nations in the context of the financial crisis in South East Asia. In particular it was examining the countries' compliance with conditions associated with new loans made to shore up the crisis stricken countries of Asia.

The ADB is dominated by Japan – which has been particularly affected by the South East Asian crisis. Japanese banks have over $800 billion bad loans most of these to Japanese corporations operating in countries formerly called "tiger economies" of

East Asia. This huge capital exposure in countries worst hit by the raging Asian crisis pushed Japan to its worst post- war recession. The Japanese government in its bid to save the ailing banks has assumed 83% of the bad loans amounting to $520 billion. This exposure was exacerbated further when Japan also contributed the biggest share in the $117 billion IMF rescue package for Asia.

The Japanese government's bailout of banks and speculators throughout East Asia has not been without its costs. Japan's new loan packages have involved economic measures that have led to sales of local banks, state assets and enterprises at very low prices – often to US, German and Japanese transnational banks and industries. In Korea, the largest banks have now been bought out by Commerzbank of Germany, the GE Capital of US and the London based HSBC. In the Philippines, the $ 3 billion loan from Japanese Miyazawa fund will finance the Banking Sector Reform Program which allows 100% foreign equity in local banks.

Whilst multinational companies have benefited from the crisis, the poorest people have had to pay for the crisis. Companies have laid off large numbers of workers, and this together with a growing squeeze on health and education budgets have led to rapidly rising unemployment and poverty. Meanwhile a rising debt burden threatens to divert much-needed funds from social sectors.

However people have not been passive in their acceptance of the new debt crisis in South East Asia. The Human Chain in Manila at the ADB is a part of growing number of protests at the social consequences of the debt. It was accompanied by a harsh critique from church leaders on the role of the ADB in exarcebating poverty in South East Asia. Cardinal Vidal, a leading member of the Philippines-Asia Jubilee campaign has exhorted his clergy "to celebrate the Jubilee Year with zeal by assisting our brothers and sisters who are being deprived of essential nutrition, health care, housing and education because of the mounting debt services of our unpaid international and national debts.”

Susan Granada, one of the organisers of the Human Chain said: “For us, it was another act of united activity from a broad range of Philippine civil society and a very good learning experience as we try to better understand the bank's activities in the region and relate them to and make the call on issues on debt and life and the jubilee.”

To find out more about the Philippines Jubilee 2000 campaign.