Derek McDowell
Ceist:48 Mr. McDowell asked the Minister for Foreign Affairs the Government's views on the proposed cancellation of Third World debt as sought by the Jubilee 2000 campaign. [20868/99]
Written Answers. - Third World Debt.
The burden of debt on developing countries, especially the poorest, is a serious challenge to the international community. The levels of debt repayment required of many heavily indebted poor countries far exceed flows of development assistance. It is not acceptable that the efforts of many of the most impoverished countries to achieve sustainable development are so constrained by the debt overhang.
I have taken a close interest in the issue of the debt burden in the developing world and I am aware of the very high level of public support for the Jubilee 2000 campaign for debt cancellation. For this reason, the debt issue was a particular focus in my address to the United Nations General Assembly last month, in which I stated:
We recognise the strength of international concern about the debt of poor countries including the urgent demands for debt forgiveness. The Irish Government decided last year to direct resources to both bilateral and multilateral debt relief, and also to make it integral to Ireland's overall development co-operation strategy.
I am concerned that real action be taken to deal with the debt problem in the shortest possible term. The HIPC debt initiative launched by the World Bank and IMF in 1996, while well-intentioned, failed to make much impact in the vast majority of the heavily indebted poor countries. Recent months have brought encouraging progress on the debt front.
The AGM of the World Bank and IMF in Washington in September witnessed agreement on an enhanced HIPC initiative which is expected to double the amount of debt relief available under the initiative and increase the number of eligible countries from 29 to 36. The enhanced HIPC is another step in the process which must provide a permanent exit from the debt burden. It will be essential to ensure that the enhanced HIPC receives the finance it requires as soon as possible. Ireland strongly supports the most generous possible EU support for the enhanced HIPC initiative.
I particularly welcome the strengthening of the link between debt relief and poverty alleviation in the new framework, which was one of the key issues raised in our own national submission to the HIPC review. As part of the new initiative, each recipient country will draw up a poverty reduction strategy paper, designed to ensure that the resources freed by debt relief will directly benefit those in the greatest need.
Full and absolute debt cancellation poses difficult and complex questions of both finance and policy. Many heavily indebted poor countries have made strenuous efforts to reform their economies to qualify for debt relief. Under the enhanced HIPC the debt of these countries should fall to levels which are sustainable and which do not drain resources from key social sectors such as health and education. This will be of immense benefit.
The creditor governments who will be called on to pay very substantial amounts in support of debt relief want to ensure that the money is used to alleviate poverty. Issues such as internal conflict, corruption and human rights abuses are also relevant in assessing debt alleviation.
Ireland is not a bilateral creditor of the developing countries. We strongly welcome measures, whether through debt relief or debt cancellation, which help relieve the burden. On a national level we have agreed to contribute funds of over £31 million to help ease the debt burden of heavily indebted poor countries. Bilaterally we have already contributed £9.5 million to debt relief in Tanzania and Mozambique, two priority countries of Irish aid. We are also contributing £22 million through the World Bank and the IMF to the financing of the HIPC initiative.
The Government has also adopted a number of guiding principles on developing country debt. In addition to supporting reform of the HIPC initiative, the Government agreed to encourage the international community, including bilateral creditors, to take a generous and flexible approach to the heavily indebted poor countries. Both the Minister for Finance and I in our discussions in the EU and at the World Bank fully endorse this principle. Together with other like minded countries we continue to press for greater efforts to be made, by whatever means, to resolve once and for all this challenge to development.