Washington, D.C. — H.R. 2634, recently introduced by Representatives Maxine Waters (D-CA) and Spencer Bachus (R-AL) promises billions in new resources for Africa, greater coherence in U.S. development assistance policy, and reform of inefficient lending practices by the international financial institutions (IFIs), including the World Bank, International Monetary Fund, and the African Development Bank. The bill, the Jubilee Act for Responsible Lending and Expanded Debt Cancellation of 2007, also limits the ability of financial speculators to target countries receiving cancellation for commercial lawsuits; currently, there are forty such lawsuits.
The Jubilee Bill is perhaps the most important single piece of legislation for Africa since the 1986 Comprehensive Anti-Apartheid Act, which imposed sanctions against the minority regime in South Africa, helping to bring political freedom to that country," remarked Imani Countess, Africa Coordinator for the American Friends Service Committee and co-chair of the Jubilee USA Network, which spearheads the debt cancellation movement in the United States.
By freeing up 15 billions in funds currently paid as debt service to the international community, countries will be able to reprogram those resources for domestic use. If passed, Africa would be a primary beneficiary.
Countries benefiting from previous cancellation efforts have increased poverty alleviation efforts, for example, in 2006:
Ø Cameroon used the US $29.8 million of savings it gained for national poverty reduction priorities, including infrastructure, social sector and governance reforms.
Ø Uganda used its US $57.9 million savings to improve energy infrastructure to try to ease acute electricity shortages, as well as primary education, malaria control, healthcare and water infrastructure (specifically targeting the poor and under-served villages).
Ø Zambia is using its savings of US $23.8 million to increase spending on agricultural projects on smallholder irrigation and livestock disease control, as well as to eliminate fees for healthcare in rural areas.
The bill also calls for greater transparency in lending as well as a call for an audit of debt accumulated by dictators and rogue regimes, e.g., apartheid South Africa, and encourages policy coherence by correcting the IMF Budget Ceilings that actually limit a country's ability to spend money on health and education, despite the desperate need for social investment.
The American Friends Service Committee is a Quaker organization that includes people of various faiths who are committed to social justice, peace and humanitarian service. Its work is based on the belief in the worth of every person and faith in the power of love to overcome violence and injustice. http://www.afsc.org/
