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| Jubilee
Plus Press Release Contacts:
Ann Pettifor in London 0207 089 2853
HIPC: Flogging a dead process In a detailed analysis of each of the 23 HIPC countries, a new Jubilee Plus report out today, ("HIPC: flogging a dead process") argues that all 23 of the HIPC countries will soon have unsustainable debts - i.e. will be back where they were before HIPC started. The Report calls for a new, independent and transparent process for helping insolvent countries. The Report shows that the HIPC countries are paying $59 million a day to much richer countries and financial institutions, and examines the experience of countries like Niger, Bolivia, Rwanda and Honduras under the HIPC process. It finds that these countries may soon be worse off than before. Bolivia, according to the Report's analysis (based on World Bank data) will not be sustainable for the next twenty years, after "debt relief" under HIPC. Niger, the second poorest country in the world, might only become sustainable by 2019. In Niger, two out of five children under the age of 3 have their physical development compromised by lack of food. Life expectancy is 44 years. Rwanda will not be sustainable, according to World Bank data, until after 2007. Rwanda's prognosis is grim, because her "sustainability" has been calculated on the basis of extremely unrealistic economic projections. In the case of Honduras, the level of debt is today higher than it would have been without assistance under HIPC. This case particularly highlights the contradictions of HIPC. Honduras was entered into the scheme, because of unsustainable debts. She leaves the scheme with higher debts, but is now defined by her creditors as "sustainable". Ann Pettifor, co-ordinator of Jubilee Plus said: "This report shows that the G7 are flogging a dead process. Creditors dominate HIPC and predictably, cannot bring themselves to write off debts. We need a new, independent and transparent process for helping effectively bankrupt countries. |
