The primary mission of Jubilee USA Network is to generate the political will for the cancellation of crushing international debts. Together with partners across the globe, Jubilee USA’s advocacy has led to concrete commitments of debt cancellation in 1999 and again in 2005, which in turn has helped free up resource for education, health, and social services.
Debt relief now has a 10-year track record of freeing up resources to fight poverty. The impact of the latest round of debt cancellation, approved by the G-8 in 2005 and implemented by the IMF and World Bank in 2006 means that 21 countries in Africa and Latin America have seen full debt cancellation from these creditors in 2006. In nominal terms, this amounts to more than $40 billion in debts cancelled.
The impact on peoples’ lives is already becoming clear:
In Ghana, the money saved is being used for basic infrastructure, including rural feeder roads, as well as increased expenditure on education and health care.
In Tanzania, the government is using the money saved to import vital food supplies for those affected by drought.
In Burundi, elimination of school fees in 2005 allowed an additional 300,000 children to enroll.
In Zambia, 4,500 new teachers have been hired and fees for rural healthcare have been abolished.
In Honduras, debt relief is to be allocated to eliminate annual fees charged for primary education, which is expected to increase enrollment from low-income families
Earlier rounds of debt relief – a result of the Jubilee 2000 campaign and commitments made by world leaders in 2005 – also made an impact. Limited debt relief was provided in response to the Jubilee call. In countries that have had more access to their own resources through debt relief, poverty reduction initiatives doubled between 1999 and 2004, according to a 2004 World Bank/IMF study. Initial debt relief benefited millions of people.
Here are just a few examples of the impact debt relief generated by the Jubilee 2000 campaign has had:
Tanzania: Back to School Days According to the World Bank, Tanzania received $3 billion in debt relief. Tanzania has increased funding for poverty reduction by 130 percent over the last six years. Tanzania has focused the savings to increase education spending and eliminate school fees for elementary school education. Almost overnight, an estimated 1.6 million kids returned to school. By 2003, 3.1 million children were back in school. The net enrollment ratio has risen from 58.8 percent in 2000 to 88.5 percent in 2003. Tanzania expects to attain universal basic education by 2006.
With debt relief savings in 2002 and 2003, Tanzania built 31,825 classrooms and the number of primary schools increased from 11,608 in 2000 to 12,689 in 2003, a net increase of 1,081 schools. Also in these two years, 17,851 new Grade A teachers were recruited and 9,100 science-teaching kits were supplied. The pass rate in primary school exams rose from 19.3 percent in 1999 to 40.1 percent in 2003. This rate would have been higher if the pass rate standard had not been raised. Source: President’s Office, The United Republic of Tanzania, in letter dated Feb. 17, 2004
Burkina Faso: Meeting Basic Needs with Services Burkina Faso has focused debt relief savings on fighting AIDS, education and access to safe water. In 2002, money freed up from debt service payments went to joint government and civil society initiatives to fight AIDS. These initiatives have been successful in controlling the spread of the virus and stabilizing the HIV positive share of the population which at 6.5 percent is significant for West African standards. Two clinics were built and the cost of drugs decreased by between 38 percent and 96 percent.
Debt relief savings have been used to build 746 schools, 20,251 classrooms and put over 110,000 children back in school over the last three years. Access to clean water, an essential ingredient in good health—especially for children—has increased by 26 percent for families. This means that over one million people now access safe drinking water. Source: IMF Country Report No. 04/79 and 04/78 of March 2004
Mozambique: Combating HIV/AIDS Debt relief has enabled Mozambique to make strides in combating HIV/AIDS. In 2001 a national plan to fight HIV/AIDS was launched. The programs will slow infection rates and mitigate effects through education, prevention, support and care. By early 2002, 24 testing and counseling offices had opened; 50 offices will be operating by 2007. More than 24,000 people were tested in 2002 alone. Source: IMF Country Report No. 03/201, July 2003
The international Jubilee movement calls for full debt cancellation for impoverished nations throughout Africa, Asia and Latin America.
While this goal has not been met, limited debt relief has been provided in response to the Jubilee call. In countries that have had more access to their own resources through debt relief, poverty reduction initiatives doubled between 1999 and 2004, according to a 2004 World Bank/IMF study. Initial debt relief has benefited millions of people.
