The Jubilee Act, a bill currently moving through Congress, would extend debt
cancellation to 67 low-income countries, provided they demonstrate plans to spend the
money wisely on poverty reduction programs.
Despite debt relief agreements in 1999 and 2005, countries of the Global South continue
to spend $100 million every day to pay foreign debts, often incurred by undemocratic
governments and under unfair lending practices. In 2005, Mexico spent $44 billion to
service debt, more than the entire budget allocated for education. Such a tremendous
outflow of money to rich countries clearly contradicts the international community’s
commitment to end poverty. Instead, debt payments limit a country’s ability to create
opportunities for people to live the lives they choose at home and force millions to
migrate in search of work.
Debt cancellation stimulates economies. For example, Uganda has invested its 2006 debt
relief savings of $57.9 million in primary education, healthcare and infrastructure
upgrades. Newly available resources can also support agricultural advancements and
other critical economic development projects. Greater economic prospects result from
debt cancellation and fair economic policies
