Spend debt relief on poverty reduction

 Letter sent to President Evo Morales regarding the use of the money product of the debt cancellation

Bolivian organizations in a coalition called Platform for Action against Poverty have sent a letter to President Evo Morales regarding the use of the resources released as a result of IMF and World Bank debt cancellations, promoted by the G8 nations.

La Paz, February 21st, 2006

Your Excellency,
Mr. Evo Morales Aima
CONSTITUTIONAL PRESIDENT
OF BOLIVIA

Dear Mr. President,

Last year, the organizations and institutions of the Bolivian civil society, coordinated as a Platform, have participated in the campaign of the Global Call to Action against Poverty, demanding world leaders to commit themselves to the fight against poverty, through specific actions, such as the total cancellation of debt for highly indebted poor countries.

The announcement made at the G8 meeting held in Scotland in July 2005, granting 18 highly indebted poor countries the cancellation of debt to the World Bank, the International Monetary Fund and the African Development Bank was the result of the above and other undertakings. Such decision was ratified at the IMF and World Bank annual meetings.

Our country - being one of the poorest in Latin America, where seven out of 10 people are poor – benefited in January 2006 from the cancellation of debt to the IMF in the amount of 220 million dollars. The cancellation of debt to the World Bank – amounting to approximately 1.5 billion dollars - would be implemented in July. Within this framework and as a Platform for Action against Poverty we are developing national and international campaigns aimed at achieving the cancellation of debt owed by Bolivia to the IADB and, if possible, to other creditors.

We are aware of the content of Supreme Decree No. 28580, approved on January 17 2006, which states that the debt cancellation to the IMF, that is to say, approximately 220 million dollars, should be allocated to writing-off a debt owed by the General Treasury of the Nation to the Central Bank of Bolivia.

It is certainly desirable for the country to make efforts aimed at reducing its internal indebtedness, furthermore when this is subject to high interests, but in no case should it be carried out at the expense of resources that were allocated to the poorest people. Besides, it should be remembered that the General Treasury of the Nation is already benefiting from resources beyond the HIPC, for a total amount of 650 million dollars.

Therefore, we would expect amounts similar to that of the IMF debt cancellation to be spent on effective poverty reduction programmes and projects in the country, no matter what level of government is in charge of their implementation, since in recent years all efforts have been pointless. Rather, poverty has increased from 63% to 67%.

Otherwise, we would be going against the spirit of the G8 inititative and all those national and international organizations that intended the debt relief granted to highly indebted poor countries to be spent on the fight against poverty and the achievement of the Millennium Development Goals.

We are convinced of the fact that - beyond all conditionalities - the fight against poverty is a priority for the country and debt cancellation resources should be spent on financing programmes and projects that would benefit the poorest sectors; on account of this, the upcoming debt cancellation to the World Bank and Inter-American Development Bank, provided they are made true, should be primarily allocated to this effect.

Trusting your sensitivity, which may certainly allow you to take measures in favour of the poorest people,

Yours faithfully,

Platform for Action against Poverty

* Fundación Jubileo
* Centro de Estudios para el Desarrollo Laboral y Agrario (CEDLA)
* Mecanismo Departamental de Control Social de La Paz
* Federación Nacional de Cooperativas Agrícolas de Bolivia (FENACOAB)
* Confederación Sindical Única de Trabajadores Campesinos de Bolivia (CSUTCB)
* Centro de Promoción y Salud Integral (CEPROSI)
* Asociación Alicia por Mujeres Nuevas - El Alto
* Acción Internacional para la Salud (AIS Bolivia)
* Comité de Defensa de los Derechos del Consumidor Bolivia
* Federación Departamental de Desocupados de La Paz
* Fundación por la Naturaleza y la Vida
* Mecanismo Departamental de Control Social de Tarija
* Coordinadora de Defensa del Agua y de la Vida
* Movimiento Franciscano Comisión Departamental de La Paz
* Observatorio Derechos Económicos Sociales y Culturales (DESC Bolivia)
* PASOC – UNIFICO Santa Cruz
* Colegio Nacional de Trabajadores Sociales de Bolivia
* Coordinadora de Integración de las Organizaciones Económicas Campesinas de Bolivia (CIOEC Bolivia)

E-mail: plataformacontralapobreza@yahoo.com
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