Tony Gregory
Question:86 Mr. Gregory asked the Minister for Foreign Affairs his response to the campaign for the cancellation of third world debt; and the steps he has taken in support of that campaign. [9654/02]
Written Answers. - Third World Debt.
Ireland remains deeply concerned about the levels of debt in many developing countries. Before recent international debt initiatives, the level of public debt owed by the group of 41 poor countries classified by the World Bank as heavily indebted, HIPC, rose sharply in relation to gross national product, GNP – from under 50% in 1980 to more than 160% by 1995. Debt service consumed almost 30% of Government revenue – exceeding combined central government expenditure on health and education. At the same time, human development indicators were deteriorating in many countries, as a result of poverty and the impact of the HIV-AIDS pandemic. Aid flows were also stagnant or declining.
Ireland has been a strong supporter of the heavily indebted poor countries initiatives, which have sought to help these countries achieve a sustainable exit from debt. In all, 38 of the 41 HIPCs are now judged as potentially eligible for HIPC relief and it is estimated that the other three could reach sustainability through traditional relief mechanisms. Total committed assistance is estimated at more than US$34 billion.
The progress which has been achieved in securing debt relief would not have been possible without the powerful global campaign of such groups as Jubilee 2000 and its successor Drop the Debt. Such campaigns have brought together an effective coalition of NGOs, celebrities and international political figures in support of debt cancellation. The debt campaign has resulted in a much closer dialogue between Governments, international organisations, NGOs and other interested groups.
Such powerful advocacy campaigns have also helped focus public attention on key development challenges. The debt campaign has been followed up by other important campaigns as the need to make sure that international patent law does not inhibit access by poor countries to life saving medicines. The campaigners have presented the concerns of poor countries clearly and have helped to interest the public in often complex development challenges.
Ireland Aid recognises the need for further debt relief, bilateral and multilateral. Ireland Aid's approach to the issue will be guided by a comprehensive debt strategy which will be published shortly. The Government has provided significant funding to help relieve the burden of debt on poor countries. Since September 1998 the Government has contributed £31.5 million to the World Bank, the IMF and national debt funds in Mozambique and Tanzania. Ireland has also paid a proportionate share of the EU contribution of over €1 billion to debt relief. This has amounted to approximately €6 million. In addition, Ireland Aid has recently made a contribution of €5.71 million to the HIPC trust fund earmarked in favour of Ethiopia. Further and more substantial contributions are anticipated in the coming years in line with the expanded Ireland Aid budget.