Res. No. 981
Title
Resolution calling upon the Bush Administration to cancel the debt in Africa.
Body
By Council Members Barron, Foster, Reed, Seabrook and Vann
Whereas, For many poor countries, debt service has created an inescapable
cycle, robbing them of growth they need to break free from foreign funds. Billions of
dollars is owed to commercial banks, the International Monetary Fund and the World
Bank; and
Whereas, In the 1970's, Western banks loaned large amounts of money to Third
World nations, including Africa, at a rapid pace for development projects. A rise in world
interest rates, global recession, and low commodity prices caused these loans to
balloon; and
Whereas, By 1994, with poor advice from economists, corrupt and undemocratic
governments that misdirected funds, failed infrastructure projects, economic
mismanagement, and war and famine, Africa's debt had risen to $1.77 trillion and many
of its countries inevitably fell behind in their payments; and
Whereas, Sub-Saharan Africa, the poorest region in the world, is overburdened
with debt. In 1996, Africa paid $2.5 billion more in debt servicing than it got in new, long-
term loans and credit; and
Whereas, Africa's external debt now tops $300 billion, a staggering amount that
costs its governments more than $13 billion annually in debt service payments; and
Whereas, The effect of these debts has been to prevent many African nations
from channeling funds into much needs areas, such as health, education, nutrition and
housing; and
Whereas, This has impacted all aspects of life in Africa, the most serious
being the country's inability to fight its growing HIV/AIDS epidemic. It is estimated that
70% of the world's 35 million people living with HIV or AIDS are in Africa and are
currently struggling to stay alive; and
Whereas, Africa's debt burden has led to a dramatic decline in human
development indicators (such as life expectancy) and an increase in extreme poverty
and has contributed to the loss of more than 16 million lives to AIDS; and
Whereas, Unless the external debts of African countries are cancelled outright
this year, any overall strategy to defeat poverty and conquer the AIDS epidemic will
surely fail; now, therefore, be it
Resolved, That the Council of the City of New York calls upon the Bush Administration to
cancel the debt in Africa.
WA
LS#2824
D-Res. #
7/18/03
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