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DEBT - A NEW FORM OF COLONIALISM
A Public Lecture given by Dr Will Kaberuka,
Economics Advisor to the President of Uganda
Jeanette Mathews
The Jubilee 2000 Debt Coalition invited Dr Kaberuka to speak on the effect of debt from the perspective of Uganda, a heavily indebted Third World nation. 1 found a number of points that he made extremely compelling, and helpful in the overall discussion of debt cancellation.
Dr Kaberuka began his talk by asserting that debt is necessary for development in the life of a country, just as it is in individual lives. Where there are no savings a nation must borrow in order to develop economically. African countries emerging from colonialism had no substantial savings. Therefore they had to borrow money. However, the repayment demanded on this debt has become crippling.
Currently Uganda repays $9 for every $1 borrowed. The Jubilee 2000 Debt Relief campaign would not necessarily cancel all debt existing in a nation. What it is aiming to do is to allow a country to repay loans at a viable rate, that is, without putting undue pressure on the economy. That is, the Jubilee 2000 debt relief campaign is about sustainability.
The Jubilee 2000 campaign distributes literature which emphasises two aspects of debt relief, one of mercy and one of justice.
The leaflets with baby "Sauda" and her life-long sentence of debt appeal for a response of mercy. As fellow human beings we ought not allow such a burden to govern the lives of innocent children. Resources which-should be set aside for her health care, education and shelter are instead being channelled into debt re payment.
The other emphasis is on justice, calling for a loosening of the chains of debt, with the clear analogy being to slavery. Dr Kaberuka pointed out that loan agencies do business as a commercial venture, not out of the goodness of their hearts! This has meant that many times there have been questionable moral grounds for loans to poor countries. The problem of heavily indebted countries is an international problem, because loan givers must accept some responsibility for using undue pressure and incentives in order to close loan deals.

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