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Africa: Debt and AIDS
Africa: Debt and AIDS
Date distributed (ymd): 020614
Document reposted by Africa Action
Africa Policy Electronic Distribution List: an information
service provided by AFRICA ACTION (incorporating the Africa
Policy Information Center, The Africa Fund, and the American
Committee on Africa). Find more information for action for
Africa at http://www.africaaction.org
+++++++++++++++++++++Document Profile+++++++++++++++++++++
Region: Continent-Wide
Issue Areas: +economy/development+ +health+
SUMMARY CONTENTS:
This posting contains (1) from Africa Action, a summary critique of
the Heavily Indebted Poor Countries (HIPC) debt initiative and (2)
calls for action by African Religious Leaders from 30 countries,
from a meeting on June 9-12 in Nairobi, Kenya, organized by the
World Conference of Religions for Peace and the Hope for African
Children Initiative.
In addition to making a strong statement against stigma and making
their own commitments to new action, the Religious Leaders called
on African governments to immediately cease paying debt service to
international financial institutions, and on rich countries to
cancel Africa's debt as well as to provide adequate funding for the
Global AIDS Fund.
For more info on the Nairobi meeting, including a summary press
release with quotes from Christian and Muslim leaders, see
http://www.hopeforafricanchildren.org
For a statement by Africa Action and other groups to the G7 Finance
Ministers meeting this weekend in Halifax, see
http://www.africafocus.org/docs02/g7-0206.php>
+++++++++++++++++end profile++++++++++++++++++++++++++++++
Africa Action Note
When the leaders of the world's richest countries meet for the
annual G8 summit in Canada later this month, they will devote
unprecedented attention to a discussion of Africa's development
challenges. At the top of their agenda should be a commitment to
addressing the overwhelming burden of the continent's foreign
debt. Africa's debt remains the single largest obstacle to poverty
reduction efforts and the fight against HIV/AIDS.
Recent reports from the World Bank reveal that the current debt
relief plan, the Heavily Indebted Poor Countries (HIPC) Initiative,
has failed to resolve the debt crisis even by its own measure.
While Africa Action notes the new legislative initiative in
The U.S. Congress that seeks to further reduce the debt stock of
HIPC countries ("Debt Relief Enhancement Act of 2002" - S.2210 and
H.R. 4524), we believe that the time has come for an immediate
moratorium on poor country debt payments to lay the foundation for
full debt cancellation.
As the critique below details, the HIPC Initiative cannot be
considered a credible framework for resolving the debt crisis.
This year's Africa focus at the G8 summit demands nothing less
than a new commitment to the cancellation of Africa's
unsustainable and illegitimate foreign debts.
Africa Action Critique of the Heavily Indebted Poor Countries
(HIPC) Initiative - June 2002
The Heavily Indebted Poor Countries (HIPC) Initiative, the current
international debt relief framework, poses as a scheme to reduce
the debt of the world's most impoverished countries to
"sustainable" levels.
Launched in 1996 by the World Bank and International Monetary Fund
(IMF), HIPC is the first comprehensive debt relief plan
integrating all bilateral, multilateral and private creditors in
one framework. The initiative aims to reduce the amount of debt
owed by eligible countries in order to prevent them from
defaulting on their outstanding loans. Eligibility is determined
by the ratio of a country's debt to the value of its exports, and
by a country's commitment to following economic policy
prescriptions dictated by the World Bank and IMF. Of the 42
countries selected by the World Bank and IMF as potential
recipients of HIPC debt relief, 34 are in sub-Saharan Africa.
Neither the original HIPC Initiative, nor the "enhanced" version
introduced in 1999, has succeeded in resolving Africa's debt
crisis. The 22 African countries that have so far qualified to
receive some relief are still required to pay almost $2 billion
each year in debt repayments to wealthy creditor countries and
institutions, mainly to the World Bank and IMF themselves. African
countries' efforts to address urgent domestic priorities, from
poverty reduction to the fight against HIV/AIDS, continue to be
undermined by their persistent debt burden. Most African
governments still spend up to three times more on debt repayments
than on health care for their own people.
The World Bank claims that almost $35 billion in debt relief has
already been committed through the HIPC framework. It states that
the amount of debt held by qualifying countries is being reduced by
up to one-third. However, the practical effect of this is minimal
when most of this debt was not being repaid anyway, and when the
remaining debt burden continues to be overwhelming.
The World Bank and IMF's estimates of the amount of savings being
released to countries through HIPC are based on grossly
unrealistic assumptions of economic growth and increased exports.
In actual fact, export growth for HIPC countries has been far less
than what the World Bank and IMF have predicted. In 2001 alone,
it was less than half of what had been projected. Even by the
World Bank's own measure, 31 of the 42 HIPC countries are not on
track for reaching "sustainable" debt levels through this process.
According to HIPC, "sustainable" debt represents the maximum
amount debtor countries can repay without defaulting. Thus, while
the HIPC framework claims to be concerned with easing the debt
burden of the world's poorest countries, it is actually designed
and controlled by creditors to extract the maximum possible in
debt repayments. It is, in effect, mainly writing off debt that
was not being paid in any case.
The initiative's focus on purely economic criteria in assessing a
country's debt burden betrays an utter lack of concern for human
development and for the capacity of poor countries to meet the
needs of their own people. The emphasis is on ensuring that
creditors recover as much debt as can be squeezed from these
countries. HIPC permits creditors to retain leverage over
indebted African countries while offering the veneer of concern for
the plight of these countries.
The economic policy conditions attached to the HIPC process mirror
the same prescriptions that have been imposed by the World Bank
and IMF on African countries for the past two decades, with
disastrous results. Although these are now repackaged to reflect
a regard for "poverty reduction," their imposition is no less
inappropriate. Tying debt relief to conditions determined by
creditors undermines African priorities and initiatives and
affords creditors an inordinate degree of control over the running
of African countries. It is a matter for African governments to
determine their own approaches to poverty reduction, in
consultation with civil society groups and other partners - not
to have these prescribed to them by external powers. It is
outrageous that creditors should seek to stipulate to African
governments how they must spend any savings that are received from
debt relief.
Most importantly, the HIPC Initiative obfuscates the illegitimacy
of most of Africa's debt. As such, it fundamentally undermines the
strong imperative for debt cancellation. Many of the loans being
repaid by African countries today were disbursed for strategic
purposes, to prop up repressive and corrupt regimes during the
Cold War. They were given for failed and grandiose projects pushed
by creditors, most of which did not benefit Africa's people. Yet
Africa's people are today expected to pick up the tab. They are
required to sacrifice their own health and education to ensure that
these debts are repaid to wealthy creditors. Not only does the
HIPC Initiative fail to acknowledge the illegitimacy of much of
these debts, it actually sanctions the continued exploitation of
indebted countries by rich creditor nations and institutions. As
African countries continue to be drained of desperately needed
resources, the real question should be "who owes whom?"
Africa's burden of illegitimate foreign debt represents the single
largest obstacle to the continent's development. Six years after
the introduction of HIPC, African countries are still forced to
spend almost $15 billion each year repaying external debts. U.N.
Secretary General Kofi Annan has joined African leaders in
declaring HIPC to be inadequate and calling for a bolder approach
to addressing the debt crisis. The Secretary General has urged a
moratorium on international debt payments until such time as an
international arbitration panel has determined a just resolution.
Such a resolution must involve debtors and independent experts as
well as creditors, and must include indebted African countries,
such as Nigeria and South Africa, that are excluded from
eligibility for the HIPC plan. Further tinkering with the HIPC
framework can only be a shell game. If African efforts to reduce
poverty and address the spread and impact of HIV/AIDS are to be
successful, Africa's debt must be canceled outright.
African Religious Leaders
Recommendations on National Policy & Advocacy Strategies on
Children and HIV/AIDS--11 June 2002
CALL FOR ACTION BY AFRICAN RELIGIOUS LEADERS
- African religious Leaders call for and will establish an African
Religious Leaders structure that will carry out advocacy functions
on the African regional level and on the global level with
government, international financial institutions, and industry to
protect children and families affected by HIV/AIDS;N
- African Religious Leaders commit themselves to continue and
expand the full use of human and financial resources to address the
HIV/AIDS pandemicN
- African Religious Leaders urgently call for and will participate
in independent monitoring and accountability mechanisms to ensure
national laws and policies will protect children and families
affected by HIV/AIDSN
- African Religious Leaders will develop mechanisms to guard
against manipulation by governments and development partners to
ensure that participation is real so that our strategic plans are
fully implementedN
- African Religious Leaders immediately call for involvement of
religious leaders in NEPAD to ensure that NEPAD is re designed and
implemented to protect children and families affected by HIV/AIDSN
- African Religious Leaders will do research on their countries to
determine what proportion of the national budget is provided for
HIV/AIDS
CALL FOR ACTION BY AFRICAN GOVERNMENTS
- African Religious Leaders call on African governments to
immediately withhold debt servicing payments to the World Bank,
IMF, and wealthy G8 governments and commit to using those resources
to eradicate poverty and implement HIV/AIDS interventions;
- African Religious Leaders call on African Governments to reform
all policies and take urgent action to remove tariffs, streamline
bureaucracy, and eradicate corruption from the drug sector to
ensure that all medically eligible African have access to
lifesaving triple-drug antiretroviral medications as soon as
possible;
- African Religious Leaders call for the review and reform of
national laws and policies so that they conform to international
frameworks to protect children and families affected by HIV/AIDS;
- African Religious Leaders call for the holistic integration of
national and traditional laws and policies to protect children and
families affected by HIV/AIDS
- African Religious Leaders immediately call on each and every
African governments to fully implement the Abuja Declaration
- African Religious Leaders call on African governments to
immediately develop and implement a plan for regional production of
lifesaving triple-drug antiretroviral generic medications
CALL FOR ACTIO
BY G8 GOVERNMENTS AND INTERNATIONAL INSTITUTIONS,
AND THE PHARMACEUTICAL INDUSTRY
- African Religious Leaders call on wealthy G8 governments to
immediately provide $7-10 billion per year starting this year to
stop AIDS through the Global Fund to Fight AIDS, TB, and Malaria
- African Religious leaders call on wealthy G8 governments, the
pharmaceutical industry, and the World Trade Organization to
urgently review and revise their policies to ensure that all
medically eligible Africans have access to lifesaving triple-drug
antiretroviral medications, including generically manufactured
drugs as soon as possible
- African Religious leaders call on the World Bank, the
International Monetary Fund (IMF) and the rich G8 governments
urgently and immediately cancel outstanding debt so that the
African people have the opportunity to eradicate poverty and stop
AIDS.
AFRICAN RELIGIOUS LEADERS ASSEMBLY ON CHILDREN AND HIV/AIDS
9-12 June 2002, Nairobi Kenya
FINAL DECLARATION
Children in Africa are being crushed by HIV/AIDS. More than 14
million have lost one or both parents. Many are sick, suffering
cruel deprivations, and are frightened and alone in a world where
no one seems to care. Worse, there is yet another burden. These
children are stigmatized, made to feel ashamed by the source of
their suffering, HIV/AIDS.
We men and women, senior representatives of Afric's religious
communities, have come to Nairobi from 30 countries to confront the
terrible impact that HIV/AIDS is having on our children and their
families. All of our religious communities are living with
HIV/AIDS, and we share the pain of all those who suffer from its
effects. Called by and respectful of our different religious
traditions, we stand united on two fronts: to protect and care for
children impacted by HIV/AIDS, and to denounce and fight the heavy
yoke of stigma that our children are forced to carry.
We proclaim the fundamental dignity of every child rooted in the
sacred origin of life. Our religious traditions compel us to act on
behalf of children affected by HIV/AIDS. Many elements of African
culture such as the concepts of UBUNTU and HARAMBEE inspire us to
pull together as communities to confront problems that deny a
fullness of life for all, especially those affected by HIV/AIDS. We
must lead efforts to change attitudes, adopt policies, and devote
resources to protect our children, insuring that all vulnerable
children, in particular girls, receive their rightful share of all
resources � educational, medical and spiritual. We must work to
help them build a future free from the scourge of AIDS.
Our religious traditions teach us that human sexuality is a gift
from the Creator, and that we must accept the responsibilities of
this gift. We recognize that HIV/AIDS is a problem that compels us
to re-examine our traditions for guidance. It is our duty as
religious leaders to lead the fight against HIV/AIDS basing our
actions on these new understandings.
All people have the right to information on how the spread of the
disease can be stopped. With conviction, concern and compassion, we
commit ourselves and urge our believers to work to stop the spread
of this disease in ways respectful of conscience as it is informed
by our religious beliefs.
Our capacities for caring for children impacted by HIV/AID are
substantial. From the smallest village to the largest city, at
district, national, and international levels, religious
organizations offer the largest social infrastructure to provide
care and support, to share information, and to mobilize community
responses. Our communities are already on the front lines in
responding to the devastating impact of the pandemic. Fully 90% of
HIV/AIDS care workers in Africa are women of faith, and we
gratefully recognize and commend their efforts.
We acknowledge that we have not fully unleashed our communities�
rich assets for action. Our messages have not always been
consistent and our voices have not always been heard. We have been
reluctant to speak openly about HIV/AIDS. Too often our own
ignorance, fear and denial have held us back as teachers about
HIV/AIDS in our communities. Moreover, many of our communities'
capacities for positive action to care for our children have not
yet been adequately engaged.
We pledge to make the fight against HIV/AIDS and its impact on
children, young people and families a priority. We commit to:
- Speak out at every opportunity to defend the dignity of every
person, to break the silence and stigma that haunts those affected
by HIV/AIDS, particularly children.
- Work harder to educate ourselves and the members of our
communities.
- Encourage mutual respect, healthy relationships and
sexual integrity among all persons.
- Help make available clear and accurate medical information on how
HIV is spread and methods to stop its transmission.
- Advocate with our governments to commit more resources and more
energy to combating HIV/AIDS, especially to addressing the needs of
children, and to hold adults accountable for the tragedy of child
abuse.
- Support stakeholders and affected persons as they systematically
review traditional practices to assess their impact on HIV/AIDS.
Religious communities have an essential role to play, but we cannot
succeed alone. We commit to working in partnerships with all
sectors of our societies in providing the necessary care for our
children. In particular, we call on our governmental leaders to
fulfill the political, financial and goodwill commitments they made
at the Abuja Summit and to give greater attention to the particular
needs of children. We urge them to review NEPAD to insure it
appropriately addresses HIV/AIDS and its impact on children and
families. Finally, we urge our governments to place a priority on
funding community based and led efforts. We pledge our readiness to
work with them to meet these goals.
14 million orphans is more than an African crisis; it is a disaster
for the human family. In practical terms, partnership with the rest
of the world is needed, in moral terms it is required. We appeal to
the international community, particularly wealthy nations, to
provide the external resources that are needed to overcome this
scourge. Their capacity to make a life or death difference on so
many children impacted by AIDS is their moral responsibility to do
so. They must honor their commitments to increase HIV/AIDS funding,
in particular meeting the $7-10 billion goal set for the Global
Fund on AIDS, TB and Malaria. In addition, we call on them to
ensure that Africans suffering from HIV/AIDS have access to
essential medications.
HIV/AIDS is not just a health issue, but a development issue as
well. Nations need to honor their pledges and commitments both for
debt relief and for HIV/AIDS funds. We call on them to immediately
cancel outstanding debt. We urge the G-8 governments to deliver
additional, substantial, tangible resources when they meet next
week in Canada.
We value the Hope for African Children Initiative (HACI) because
only a dynamic expanding partnership of all stakeholders can
address the needs of our children. HACI brings together religious
communities, other civil society groups, international development
agencies, governments and intergovernmental agencies as partners,
each contributing in own essential strengths. Within HACI, we look
forward to working with the World Conference on Religion and Peace
to expand the work being done in our local communities to care for
children.
As people of faith, we share in the suffering of all those affected
and infected by HIV/AIDS, but we remain filled with hope. AIDS need
not be a death sentence. Today, in communities across this
continent people are finding ways to meet the needs of children and
families through counseling, education, treatment, transition
planning, prevention, and many other interventions. We have
increased knowledge of what works. Our challenge is to find ways to
ensure that every child victimized by this disease receives the
needed care. We pledge our energy and resources to achieve this
goal. With the help of the Divine, we will see a world free of
HIV/AIDS where every child has hope for the future.
This material is being reposted for wider distribution by
Africa Action (incorporating the Africa Policy Information
Center, The Africa Fund, and the American Committee on Africa).
Africa Action's information services provide accessible
information and analysis in order to promote U.S. and
international policies toward Africa that advance economic,
political and social justice and the full spectrum of human rights.
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