Action Alert on Odious Debt

Call your Representative and ask for him/her to co-sponsor H.R. 2482 for the IMF and World Bank to cancel Iraq’s odious debt. You can reach your Representative at 202-224-3121.

Jubilee has often argued that the debts of the Global South are illegitimate debts. We have called upon the principle of odious debt to defend this argument. Legally, debt is to be considered odious if the government used the money to oppress the people or for personal purposes. Moreover, in cases where borrowed money was used in ways contrary to the people’s interest, with the knowledge of the creditors, the creditors may be said to have committed a hostile act against the people. They cannot legitimately expect repayment of such debts.

While we, and our partners in the Global South, have long made the case for the debts of impoverished countries being considered odious, until now we have found it impossible to make headway in Congress on this issue. The interest in reconstruction in Iraq and the U.S. administration’s remarks on the odious nature of Iraq’s debt gave us the perfect opening. We have created a bill to be introduced by Representatives Maloney and Leach that will set a precedent for legislation on odious debt by focusing on canceling Iraq’s odious debt. This legislation can open the door for future bills on odious debt in Africa, Asia and Latin America.

Call to action:

On Wednesday, June 11th, Representative Maloney, a Democrat from the 14th district of NY and Republican Representative Leach of the 1st district of IA introduced the Iraqi Freedom from Debt Act, for the purpose of pressuring the IMF and WB to cancel, or radically adjust downward the odious debt of Iraq. (We had hoped it to say only “cancel” but Representative Leach added the adjust language. This might be able to be cut at another time.)

We need a strong list of co-sponsors to build up the support for this bill and to help to educate Congressional staff and members about odious debt. If we can get 25 additional members to co-sponsor the bill, we have been assured that it will be able to move through committee as a stand-alone bill or be able to be attached to the foreign operations appropriation bills.

This means that every member counts!

Please call your Representative today and ask them to Co-sponsor Representative Maloney and Leach’s “Iraqi Freedom from Debt Act” H.R. 2482. To co-sponsor the bill the staff should call Donald Auerbach in Representative Maloney’s office at (202) 225-7944. See the talking points and frequently asked questions below and feel free to contact Marie Clarke at 202-783-0215 or e-mail marie@jubileeusa.org for more details.

Background on Odious Debt and the Broader Jubilee Strategy:

The United States set the first precedent of odious debt when it seized control of Cuba from Spain in 1898. Spain insisted that Cuba repay the loans made to them by Spain. The U.S. repudiated (refused to pay) that debt, arguing that the debt was imposed on Cuba by force of arms and served Spain’s interest rather than Cuba’s, and that the debt therefore ought not be repaid. This precedent was up-held in Great Britain v. Costa Rica (1923) when money was put to use for illegitimate purposes with full knowledge of the lending institution and the resulting debt was annulled.

While this bill deals only with Iraq, and we believe that there are many more countries throughout the Global South whose illegitimate debts should be declared null and void, this bill will set a precedent in congress that will enable us to build the case for other nations.

South Africa, Congo, Haiti, Kenya, Argentina and many others are paying debts accrued by dictators that stole the money or used it to oppress their own people. While the odious debt of Iraq must be cancelled, Africans and others of the world’s poorest citizens have been forced to stand in line for decades waiting for limited debt relief of debts that were also accrued under oppressive regimes. The apartheid government in South Africa, for example, was lent billions of dollars that were used to the detriment of the very people that now consequently have to foot the bill.

Jubilee will continue to work through legislative vehicles, education, outreach and the court system to have the illegitimate debts of countries throughout the Global South recognized as illegitimate and odious debt. You can learn more by reading our odious debt primer in the education and action packet. Call 202-783-0214 to order a packet today or e-mail coord@jubileeusa.org.

For more information on debt, please contact Marie Clarke at Jubilee USA Network. (202) 255-7849. To co-sponsor the bill, contact Donald Auerbach in Representative Maloney’s office at (202) 225-7944.

*****************************************

Marie Clarke Brill
National Coordinator
Jubilee USA Network
222 East Capitol Street, NE
Washington, DC 20003
(202) 783-0215
(202) 546-4468 - fax
marie@j2000usa.org
http://www.jubileeusa.org

Joining hands to break the chains of debt