A generation ago, campaigners around the world won an incredible $130bn in debt cancellation for countries in debt crisis. This stunning win had a real impact on people’s lives – with more money available to fund public services like education and healthcare.
But the underlying issues that caused the crisis were never addressed. Decades on, there is still no fast, effective, and fair debt relief process for countries in crisis. Instead, big development banks like the World Bank and International Monetary Fund (IMF) continue to lend money to countries in crisis – piling on the debt and enabling high interest to private lenders to keep being paid.
In countries like Kenya, Sri Lanka and Ghana, highly unpopular austerity measures as conditions for these bailouts have led to civil unrest and repression of protesters. Across countries in crisis, public services are being decimated – with public spending lower in 2023 than in 2015. In Angola, the country with the highest debt payments in the world, spending on social services including health and education has fallen by more than 55% since 2015.
“The debt crisis in Zimbabwe has had a devastating impact on communities, which is exacerbating poverty and limiting access to basic services. The burden of debt is not unique to our country – it’s a global issue that requires a unified response.”
Absolom Jim, Debt for Climate Zimbabwe
With fifty-four countries in debt crisis right now, it’s a depressing picture. But there is hope – because the biggest debt crisis in thirty years is coinciding with key international meetings this year where lower-income countries will have the chance to force their priorities onto the agenda.
The United Nation’s Financing for Development conference (FfD4) in Seville at the end of June could be a pivotal moment for debt justice. While lender dominated spaces and processes are failing countries in crisis, FfD4 is a critical space for lower-income country governments and campaigners to make their voices heard. It’s a rare chance for reform of the system through democratic processes.
Civil society groups, along with the G77 – a coalition of developing countries within the United Nations – are pushing hard for a new debt framework that would help end the crisis and prevent future ones. Together with these allies, we are calling for a binding, transparent, and inclusive legal framework – a UN Framework Convention on Sovereign Debt.
Debt is going to be a key battle at FfD4, where we will be standing alongside allies from around the world and lower-income country governments to push for reform. It’s a big opportunity for us to stand together with allies globally who are demanding action from world leaders at this critical juncture, at a time when strong demands from civil society could help tip the balance.
We’ll be joining thousands of others who are mobilising for action on debt during the conference in Seville, demanding that world leaders take this opportunity to Cancel Debt, Choose Hope.
Add your name to thousands of others who are demanding justice by signing the petition today.
Photos © Jason DeCrow/AP Content Services for Glasgow Actions Team