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Debt Has a Child's Face: Push to cancel debt

Immensely valuable as such reforms could be, however, they are not enough. Unpayable debt exacerbates poverty, so some or all of the debt must be cancelled for the poorest countries at least. The Jubilee 2000 campaign, which calls for a one-off cancellation of unpayable debt at the millennium, has won both wide popular support and been endorsed by many political and religious leaders. The precise date may be a matter for debate, but the need for significant cancellation is now unquestionable.

It is said that cancellation would set a precedent and make it less likely that debtor countries would be lent money in the future. But, as we have seen, there have been defaults in the past, and the poorest debtors attract little investment anyway. Cancellation, it is also claimed, would create a 'moral hazard' by rewarding irresponsibility. But reckless lending helped cause the crisis, so the responsibility is a joint one. Besides, the debtors have already repaid what they owe in actual cash terms; clearly, a greater moral hazard is created by continuing to insist on extreme financial stringency at the expense of children's lives.

Debt's burden falls most heavily on the minds and bodies of children.

Cancellation is an opportunity for both creditors and debtors to launch a war on poverty and direct resources to the most needy, especially children, by concentrating on human development. It would be consistent with the 20/20 Initiative — a plan for financing basic social services from national resources and donor funds agreed upon by all governments at the World Summit for Social Development in 1995 — and it is long overdue.

The time for a joint assault on debt and destitution is not now — it was yesterday. For millions of children, tomorrow will be too late.