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Academics back call for new debt framework

(May 2003)

The Association of University Teachers, the union that represents academics in the ‘old’ universities, meeting in its Summer Council in Scarborough on 9th May, unanimously declared its support for a fair and transparent system of independent arbitration for debt relief. The motion, moved by Dr David Golding, a member of the national board of JDC, was as follows:

“The senate of the University of Newcastle upon Tyne has endorsed the call by Kofi Annan, the secretary general of the UN, for a new, fair and transparent ‘debt arbitration process to balance the interests of creditors and debtors and introduce greater discipline into their relations’. The objective should be to secure and protect resources for essential services such as schooling, basic medical care, clean water and public health information programmes. Council welcomes the university’s initiative on reform of debt relief mechanisms, and urges all local associations to encourage their institutions to support this campaign, initiated by Newcastle University.”

The text of David Golding’s address to Council is given below.

“No movement has impacted Britain as much as the debt campaign since Wilberforce led the anti-slave trade campaign,” said Gordon Brown, but happily the impact has also been felt further afield.

A recent, unsolicited email from Dr Simon Challand, a Newcastle medical graduate who works in Uganda, reported that “There have been huge improvements in health and education”. Debt relief for Uganda has meant free primary education and put an extra three and half million children into school: “Everywhere you go you can see new classrooms going up...” says Dr Challand.

As a member of the national board of the Jubilee Debt Campaign, I express our sincere thanks to the Association for its support – we were, after all, only the second union to sign up to the coalition.

Yet the debt relief promised remains grotesque in its inadequacy. The Disasters Emergency Committee of British aid agencies had a target of £10 million for the Southern Africa famine, but even after relief, Africa spends more than twice that amount on debt repayments, each and every day of the year. Ethiopia, for example, is due to repay 73 million dollars this year, even as millions of its people face starvation. As the celebrated Harvard economist, Professor Jeffrey Sachs, has said: "The IMF and World Bank are still collecting money from these countries when millions of people are dying for lack of basic medical care".

These glaring defects are due, we believe, to a basic flaw in the underlying process. We have, in effect, a bankruptcy procedure which lacks any element whatever of independent arbitration or right of appeal - a flagrant violation of a fundamental principle of justice. In contrast, Kofi Annan has called for a new “debt arbitration process to balance the interests of creditors and sovereign debtors and introduce greater discipline into their relations”.

The objective of such a procedure should be to secure and protect resources for essential services such as schooling, basic medical care, clean water and public health information programmes. It should also monitor the stewardship of resources already made available, with a view to giving far deeper debt relief to those who are using those resources responsibly.

The Newcastle Senate has unanimously endorsed the Secretary General’s proposal and our debt group is preparing an initiative - the “Universities’ Call for debt relief Reform” - to seek wider expressions of support. Its launch, originally set for March (when certain minor international distractions intervened!), is now firmly scheduled for October, when we intend to write to every Vice-Chancellor in the country.

“I would be honoured to be a Patron of this new initiative by universities,” says Desmond Tutu, the Nobel Peace Prize winner.

Expressions of support have also been received from the V-Cs of Newcastle and Oxford; Lord Megnad Desai, professor of economics at the LSE (“I am delighted to associate myself with the... campaign”); Baroness O’Neill, Principle of Newnam, Cambridge (“An admirable initiative); the Director of UNCTAD, The U.N. Conference on Trade & Development in Geneva (“I am very happy to give my full personal support to this worthy initiative” ). Kofi Annan has also written to us to say he welcomes the involvement of universities in this matter.

During the past three days, we have discussed many matters of great importance to the future of our young people. But consider the situation confronting their counterparts in Zambia. According to Dr Dorothy Logie, an authority on African health care systems, “Many young girls now appreciate that in order to escape from oppression and intensifying poverty, they need education. One of the commonest reasons for girls becoming infected with HIV/AIDS is by selling sex to older men to pay for their school fees.” Meanwhile, Zambia has to pay 4 million dollars each week in debt service – and that’s after so-called “relief”. Complacency with such a situation must surely rank as one of the most degraded and obscene mind-sets ever to disgrace the human condition.

“Every night and every morn, some to misery are born; Every morn and every night, some are born to sweet delight,” wrote Blake.

Those of us who were born to the truly sweet delight of higher education could do nothing better with our abilities than to seek, in however small a way, the welfare of those born to the endless night of ignorance. Over 300 million children, most of them girls, are being deprived of the opportunity for even basic literacy and each one of them is hammering on the doors of this Congress, as on the doors of our busy lives, asking for just a little attention. This motion is dedicated to those children and I commend it to you.

David W. Golding (PhD, DSc)

Spokesperson for JDC at Newcastle University (Principal Patron, Professor Christopher Edwards, Vice-Chancellor). Email, d.w.golding@ncl.ac.uk