Latin American churches welcome Norwegian debt cancellation
-13/11/06
The 14 Latin Ame
Latin American churches welcome Norwegian debt cancellation
-13/11/06
The 14 Latin American member churches of the Lutheran World Federation (LWF) have welcomed the unilateral and unconditional decision of the Norwegian government to cancel some 63 million Euros (81 million US dollars) of the illegitimate foreign debt of five developing countries.
In a letter to Norwayís Prime Minister Jens Stoltenberg, the moderator of the regionís Lutheran church leadership body, Rev Dr Gloria Rojas wrote that this ìbrave and totally unprecedented stepî places the Norwegian government within “the vanguard of the topic of debt.”
It is of particular importance that the Norwegian government explicitly mentions its “co-responsibility” as the “creditor country for the credit granted in what it defines as a failed development policy that lacked an appropriate evaluation of needs as well as an appropriate risk analysis,” said Rojas in her letter presented on 10 November 2006 to Ambassador Wegger Chr. Strommen, Norwayís Permanent representative to the United Nations Office and other international organizations in Geneva, Switzerland.
Dr Rojas, president of the Evangelical Lutheran Church in Chile (IELCH), added that the cancellation being made without linking it to Norwayís development aid funds came in positive contrast to other developments. In other cases, “supposed debt relief has gravely distorted the amounts actually granted to the poorer countries for their development.”
She said that the Latin American Lutheran World Federation member churches now hoped that the Norwegian government would continue to pursue debt studies and audits within the UN structures, the World Bank and other international institutions.
This debt cancellation could be used as a kind of model for other governments to follow, it was agreed. LWF members also supported the development of universally recognized international laws with acknowledged and enforceable minimum standards for fair trade, pointing out that injustices such as illegitimate foreign debt cannot be brought before a court until there are globally recognized rules to follow.
According to the LWF General Secretary, the Rev Dr Ishmael Noko, the Latin American churches’ letter represents a response of the whole federation. Noko, furthermore, asked Norway to take the lead in the establishment of an international tribunal dedicated to auditing debt. He said that Norway had shown that it was willing to listen to the voiceless, and that the LWF supported the establishment of an international court. The general secretary called upon other ecumenical organizations to join in the process.
Following years of pressure by churches, non-governmental organizations, and social movements, the Norwegian government decided in early October to cancel the debt owed by Egypt, Ecuador, Jamaica, Peru, and Sierra Leone.
This debt originated from the Norwegian Ship Export Campaign. It to lead the Norwegian shipyard industry out of a severe crisis, the Norwegian government provided 21 countries with credit to purchase ships and shipping equipment between 1976 and 1980. The government did not however, consider whether the ships delivered made developmental and economic sense for the developing countries in question.
A statement of the Norwegian government states that it ìis now generally agreed that the Ship Export Campaign was a development policy failure.î As a creditor, “Norway shares part of the responsibility for the resulting debts. By cancelling these claims, Norway takes” up its responsibility in allowing these countries not to service the remainder of this debt.
The Lutheran World Federation’s Latin American member churches have been conducting an advocacy programme since 2004 to focus on the illegitimacy of the region’s foreign debt. LWF made the issue a priority in a 2003 statement.
Latin American churches welcome Norwegian debt cancellation
-13/11/06
The 14 Latin American member churches of the Lutheran World Federation (LWF) have welcomed the unilateral and unconditional decision of the Norwegian government to cancel some 63 million Euros (81 million US dollars) of the illegitimate foreign debt of five developing countries.
In a letter to Norwayís Prime Minister Jens Stoltenberg, the moderator of the regionís Lutheran church leadership body, Rev Dr Gloria Rojas wrote that this ìbrave and totally unprecedented stepî places the Norwegian government within “the vanguard of the topic of debt.”
It is of particular importance that the Norwegian government explicitly mentions its “co-responsibility” as the “creditor country for the credit granted in what it defines as a failed development policy that lacked an appropriate evaluation of needs as well as an appropriate risk analysis,” said Rojas in her letter presented on 10 November 2006 to Ambassador Wegger Chr. Strommen, Norwayís Permanent representative to the United Nations Office and other international organizations in Geneva, Switzerland.
Dr Rojas, president of the Evangelical Lutheran Church in Chile (IELCH), added that the cancellation being made without linking it to Norwayís development aid funds came in positive contrast to other developments. In other cases, “supposed debt relief has gravely distorted the amounts actually granted to the poorer countries for their development.”
She said that the Latin American Lutheran World Federation member churches now hoped that the Norwegian government would continue to pursue debt studies and audits within the UN structures, the World Bank and other international institutions.
This debt cancellation could be used as a kind of model for other governments to follow, it was agreed. LWF members also supported the development of universally recognized international laws with acknowledged and enforceable minimum standards for fair trade, pointing out that injustices such as illegitimate foreign debt cannot be brought before a court until there are globally recognized rules to follow.
According to the LWF General Secretary, the Rev Dr Ishmael Noko, the Latin American churches’ letter represents a response of the whole federation. Noko, furthermore, asked Norway to take the lead in the establishment of an international tribunal dedicated to auditing debt. He said that Norway had shown that it was willing to listen to the voiceless, and that the LWF supported the establishment of an international court. The general secretary called upon other ecumenical organizations to join in the process.
Following years of pressure by churches, non-governmental organizations, and social movements, the Norwegian government decided in early October to cancel the debt owed by Egypt, Ecuador, Jamaica, Peru, and Sierra Leone.
This debt originated from the Norwegian Ship Export Campaign. It to lead the Norwegian shipyard industry out of a severe crisis, the Norwegian government provided 21 countries with credit to purchase ships and shipping equipment between 1976 and 1980. The government did not however, consider whether the ships delivered made developmental and economic sense for the developing countries in question.
A statement of the Norwegian government states that it ìis now generally agreed that the Ship Export Campaign was a development policy failure.î As a creditor, “Norway shares part of the responsibility for the resulting debts. By cancelling these claims, Norway takes” up its responsibility in allowing these countries not to service the remainder of this debt.
The Lutheran World Federation’s Latin American member churches have been conducting an advocacy programme since 2004 to focus on the illegitimacy of the region’s foreign debt. LWF made the issue a priority in a 2003 statement.