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Japan Moves to Cancel Debt of Poor Countries
By Suvendrini Kakuchi
In a statement issued at this week’s Social Summit the Japanese government has pledged to cancel the debt of all Heavily Indebted Poor Countries (HIPCs) on the condition that the savings that these countries will realise from such a move go toward social development.
"Japan is firmly committed to the full cancellation of all ODA (Overseas Development Aid) debt owed by HIPCs under the Enhanced HIPC Initiative agreed upon at the Cologne Summit last year,” said the statement."
Japan believes that it is important to ensure that the resources realised through debt relief be used effectively for the well being of the people in debtor countries, it added.
Japan is the third largest lender to the Heavily Indebted Countries, most of which are in Africa. Japan is also the last country in the G-7 to have entered the debt relief programme.
The move has been applauded by NGOs at the Forum.
“ We have lobbied hard for so long. I think our single minded commitment to arm twisting
the government has worked,” said Yoko Kitazawa, a member of the Pacific Resources Center, an NGO based in Japan.
Others say this move by the Japanese government will go a far way in the poverty alleviation programmes being undertaken by governments in poor countries that have been forced to divert funds that should be used on social services to repay loans.
Reports on the debt problem in developing countries indicate that more than one-third of the budgets of many of the developing countries go toward debt payment.
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Has the world lived up to its 1996 commitments..?
Solidarity 2000 starting 17th of June!
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The 1996 Copenhagen Social Summit final report in English, French and Spanish.