International Debt (Systemic Causes of Poverty)

“We commit ourselves to explore and face the complexity of the economic, social and political causes of poverty as we work toward the elimination of unjust structures…” (SSND Call of the 20th General Chapter)

The School Sisters of Notre Dame have recognized for many years the role international debt plays in sustaining and enhancing poverty throughout the developing world. In the world’s most impoverished nations, the majority of the populations do not have access to clean water, adequate housing or basic health care. These countries are paying debt service to wealthy nations and institutions at the expense of providing these basic services to their citizens.

Millions of people around the world are living in poverty because of this international debt and its consequences. It is estimated that the lives of 19,000 children could be saved every day if the debt of these countries was cancelled and savings put to good use.

Of the 32 countries classified as severely indebted low-income countries, 25 are in Sub-Saharan Africa. Africa spends four times as much on debt repayment as it does on healthcare.

Debt works as foreign aid in reverse: for every dollar sent to the poorest countries in aid, $1.30 flows back to lenders in debt service. These nations have already paid back their debts time and again. For example, Nigeria borrowed $5 billion, paid $16 billion to date, and yet still owes $32 billion more due to compound interest.

Much of this debt resulted from stolen wealth, or loans that were used to serve the purposes of the elite and not the people. Other debt resulted from irresponsible projects that failed to serve a greater purpose, or caused harm to the people or the environment.

(Source: Jubilee USA Network)

The School Sisters of Notre Dame Respond
In the late 1990’s the School Sisters of Notre Dame joined Pope John Paul II, the Leadership Conference of Women Religious and hundreds of other groups in supporting major debt relief for heavily impoverished nations. While much has been accomplished, a great deal of work remains.

Many sisters have written letters and contacted their congressional representatives and other governmental officials about legislation and other efforts to promote the reduction of international debt for impoverished countries. The SSND SHALOM North America Committee is an active member of the Jubilee USA Network. Through the SSND Cooperative Investment Fund and our Corporate Responsibility Committee we have supported the boycott of World Bank Bonds as a means of encouraging reform of this institution. School Sisters of Notre Dame have also helped organize and sponsor several workshops and speakers. As a Non-Governmental Organization (NGO) of the United Nations, the School Sisters of Notre Dame also monitor and support UN initiatives directed at addressing this most serious issue.

What You Can Do - Holiday Cards for the Poor
How about adding a few names to your holiday card mailing list, say...the White House and the US Treasury Department! We are hoping to flood the White House and Treasury with holiday cards calling for bold action to cancel the foreign debt for the world's poorest countries early in the new year. The next likely moment for a decision on debt will come at the next G-7 Finance Ministers meeting on February 5, 2005 - just a few weeks after the Inauguration.

Here’s some sample language you can use in your Holiday Card: "President Bush / Treasury Secretary John Snow, Happy Holidays! In the spirit of the season, I urge you to take action early in the new year by working with the other G-7 nations to support 100% debt cancellation for all impoverished nations. It is critical that debt cancellation come without harmful conditions. Please support dropping the debt-Now!”

You can use your own holiday card, or use a sample card available at www.jubileeusa.org

Please send your card to the US Department of Treasury, 1500 Pennsylvania Avenue NW, Washington, D.C. 20220 and the White House, 1600 Pennsylvania Ave., NW, Washington, DC, 20500.

Pray
Add this Prayer For the Work Against Poverty to your daily/weekly prayers.