Debt Relief

Background:

I got involved in politics in the 1980s as a result of campaigning on international debt and aid issues. I now have the pleasure of being Secretary of the All Party Heavily Indebted Poor Countries Group in the House of Commons.

I have worked closely with Jubilee 2000 (now Jubilee Debt Campaign), and other Campaign Groups on this issue. I was delighted to have been invited to share a platform with these groups at Birmingham in June 2003 to celebrate the 5th anniversary of the Drop the Debt campaign in Birmingham in 1998.

It is impossible to capture everything I have done on Debt issues since 1997, but as a start you will be able to view the formal questions I have asked in the Commons from Hansard. The links are available on the Parliamentary Information page.

As we stand today a great deal has been achieved. We have to remember that a decade ago the G8 did not discuss this sort of thing. It was the Birmingham lobby and this government as Chair that finally got Debt Relief onto the agenda. Still the UK and Canada lead the way in the G8 and on the World Bank and IMF.

For some countries like Uganda the first debt relief packages had a great and direct affect. New schools were built and education got a boost.

However, the HIPC initiative has not really lived up to its expectations. The figures may be impressive, but the reality is that millions still live in poverty and that for some of the countries their debt burdens have actually grown. The problem lies with the HIPC initiative and what it sets out to achieve - sustainable debt.

In the last few years some commodity prices have collapsed. In Ethiopia for example the price of coffee has fallen to pre 70's prices causing misery for the farmers growing the crops and also the government and the HIPC initiative. The level of sustainable debt was measured against the counties export ratios. In Ethiopia's case export earnings fell from $270m to $170 in just 3 years as a consequence of the fall in coffee prices. This means that the debt level is now unsustainable even by HIPC measurement.

Where debt relief has worked its benefits have been an inspiration, but all too often the success has not been felt by those who need to benefit most - the countries poor.

This is now where the All party HIPC Group are prioritising their efforts. Reform of HIPC to make it work for the countries most in need and then to make sure the debt relief reaches the poorest.

Details of campaigns and the latest updates can be found on the web links page and below.

Updated June 2003

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