Groups urge unconditional debt cancellation for world's poorest

Catholic New Times, Nov 21, 2004

OTTAWA -- Canadian Civil Society Organizations recently sent an open letter to Prime Minister Martin calling on Canada to support full debt cancellation for the poorest countries. Meetings in Washington around the World Bank and International Monetary Fund (IMF) may produce a plan to deal with the crushing debts held by the poorest countries, the letter said.

"Prime Minister Martin, this is a key opportunity for Canada to show the international leadership you spoke of in the lead up and during the last federal election. We hope that the Government of Canada will use this opportunity to secure a lasting solution to the debt crisis facing the poorest countries."

In recent weeks, reports have surfaced that both the United States and Britain have drafted competing plans to announce debt cancellation for some poor countries. While there seems to be agreement that the debts should be cancelled, there is not yet agreement on how to pay for it.

Development, environment, labour, human rights and faith groups are calling on Canada to show leadership in these negotiations and propose a lasting solution that will put an end to the debt treadmill.

"Canada should come up with a proposal that ensures debt cancellation, does not compromise current or future international aid flows and also assigns fiscal responsibility for the crisis where it belongs; with the World Bank and International Monetary Fund (IMF)," said Michael Bassett, coordinator of the Halifax Initiative Coalition.