Sir, - In a number of recent articles The Irish Times has referred to the package of $70 billion to relieve Third World debt in response to the Jubilee 2000 Campaign. On the face of it, this may seem a significant concession by the group of eight industrial nations. However, the devil is in the detail and the $70 billion conceals more than it relieves.
$25 billion of this money was already committed since 1996 in what is known as the Highly Indebted Poor Countries Initiative. A further $20 billion is composed of "country-to-country" aid loans, which were not being paid off anyway. So "cancelling" these is a book exercise making no more money available for the indebted countries to meet the education and health needs of their peoples.
That boils the $70 billion down to $25 billion. Alas, even this part is written in future values (future repayments including interest). So in fact the total package boils down in today's values to something between $12 billion and $14 billion (we will have to see the small print before calculating exactly). And this is to be shared among some 36 countries.
Alongside this, in order to receive any cancellation some poor countries, such as Mozambique, will have to begin to repay parts of their debts which were not being serviced. This explains how, having received cancellation, some countries will in fact end up making greater repayments than prior to "cancellation".
This $12 billion is the new concession and is to be welcomed, but with somewhat less fanfare. Jubilee groups from developing countries have made it quite clear that this is no "new start for a new millennium". Debt repayments will continue to flow from the poorest countries at a pace similar to current levels. No independent arbitrator has been established to determine who owes what. The IMF and World Bank continue in a reinforced role with even greater leverage over the lives of people who did not elect them. - Yours, etc., Conall O'Caoimh, Chairperson, Debt and Development Coalition (Ireland),
All Hallows, Dublin 9.