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Thursday, 6 April, 2000, 12:07 GMT 13:07 UK
Short urges action on poverty
Mozambique floods
Mozambique floods: Sharpened focus on debt campaign
International Development Secretary Clare Short has called on governments to show an increased political will to tackle the gap between the rich and the poor.

Speaking as she unveiled her department's annual report, Ms Short said that there were still "massive obstacles" to tackling poverty.

Ms Short's comments came after it emerged that only five of eleven countries expected to receive debt relief from the UK on top of multilateral debt cancellation will now get that help this spring because of international delays.

Ms Short and the Chancellor of the Exchequer Gordon Brown have urged the International Monetary Fund and the World Bank to implement the Heavily Indebted Poor Countries scheme (HiPC) faster, so that the UK can fulfill its side of the deal.

Ms Short and Mr Brown have proposed that the new implementation body would be able to deal with delays by becoming a single contact point of contact for the indebted country and their creditors.

Delay costing lives

Mark Farmaner of Christian Aid, one of the key members of the Jubilee 2000 debt relief coalition, called on the chancellor to go further and force debt relief further up the agenda at the coming G8 summit of leading industrial nations in Japan.


Clare Short
Clare Short: Urging more action
He said that inaction which had caused the delay in relief to nations under the UK's own scheme was unacceptable.

"We welcome the government's move to establish this implementation body but it's a sad state of affairs when so few countries will be receiving debt relief that 19,000 children are still dying everyday in Africa.

"Debt is costing lives."

But he added: "One of the problems with the delay is that countries have to produce a poverty reduction strategy paper before they can go forward into HiPC.

"In theory the paper is a good idea but in practice it's another obstacle."

Mr Farmaner said that international creditors should provide immediate debt relief to nations who have completed this document on the basis of their need not on what they can or cannot afford to pay back.

"The UK is not pushing for a new debt relief deal at the coming G8 meeting.

"There are nations who desperately need this relief but cannot get it.

Bangladesh, for instance, is spending 30% of its budget on servicing debt and has appalling problems with stunted growth among children through malnutrition.

"But it does not even qualify for HiPC."

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See also:

07 Mar 00 | UK Politics
Cross-party praise for debt relief
17 Dec 99 | UK
Britain writes off debt
20 Sep 99 | The Economy
Brown calls for $1bn debt donation
08 Jun 99 | debt
Q & A: Dropping the debt
17 Dec 99 | debt
The burden of debt
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