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Note: This document is from the archive of the Africa Policy E-Journal, published by the Africa Policy Information Center (APIC) from 1995 to 2001 and by Africa Action from 2001 to 2003. APIC was merged into Africa Action in 2001. Please note that many outdated links in this archived document may not work.


Africa: Debt and U.S. Congress

Africa: Debt and U.S. Congress
Date distributed (ymd): 000612
Document reposted by APIC

+++++++++++++++++++++Document Profile+++++++++++++++++++++

Region: Continent-Wide
Issue Areas: +economy/development+ +US policy focus+
Summary Contents:
This posting contains a press release and an action alert on congressional actions this week and next which will determine how much funding is available for U.S. support for international debt relief programs.

Note: As material with particular relevance for U.S. citizens and residents, this posting is only going to addresses on the Africa Policy Electronic Distribution List with U.S.-registered (threeletter) computer domains. However, if you are not a U.S. resident or citizen, we hope that it is useful for your background information, and that you will pass it on to those of your U.S. contacts who may be interested.

For actions on debt related to the upcoming G-8 Summit in Okinawa in July, please consult the web sites of Jubilee 2000 UK (http://www.jubilee2000uk.org/action/japan0100.html) and Jubilee 2000 USA (http://www.j2000usa.org/action/g8.html).

+++++++++++++++++end profile++++++++++++++++++++++++++++++

The Africa Fund,
50 Broad Street, Suite 711,
New York, NY 10004 USA

June 8, 2000

For more information contact: Richard Knight (212) 785-1024
E-mail: africafund@igc.org
Web: http://www.theafricafund.org

National Black Caucus of Local Elected Officials Calls for Debt Cancellation for African Countries

The National Black Caucus of Local Elected Officials (NBC-LEO) adopted a resolution at its spring conference calling for active debt cancellation and relief for African countries. The resolution urges full appropriation of President Clinton's request for funding of the Cologne Initiative, an international effort of the G-7 industrialized countries to bring debt relief to highly indebted poor countries. The NBC-LEO resolution comes as Congress appears poised to appropriate only a small portion of the money requested for debt relief. NBC-LEO "requests that poor country debt cancellation be supported by the United States to improve the political and economic development of African countries and improve the lives of African people."

The Clinton Administration has proposed a multi-year package for debt relief for the fiscal years 2000-2004 including $320 million for bilateral debt relief and $600 million for multilateral Cologne Initiative debt relief. To date, Congress has done little to support debt cancellation or relief - last year Congress only appropriated $110 million for bilateral debt cancellation and none for multilateral debt relief. The Senate Foreign Operations bill, now before Congress, has only $75 million for all debt relief for FY 2001 compared to the request of $435 million for multilateral debt relief ($210 million for FY 2000 and $225 million for FY 2001). The House Foreign Appropriations Committee, scheduled to take up the matter on June 13, is expected to adopt no more than one-third of the Administration request.

"By adopting this resolution stressing the importance of appropriating full funding for debt relief and cancellation the National Black Caucus of Local Elected Officials is providing important leadership and guidance on U.S.-Africa policy," said Jennifer Davis of The Africa Fund. Davis addressed the spring conference on the African debt crisis at the invitation of NBC-LEO President Cleveland City Council Member Roosevelt Coats.

NBC-LEO, with members in 34 states, is a caucus of the National League of Cities working to influence national policy positions to promote the special interests and needs of the African American community. The Africa Fund, founded in 1966 by the American Committee on Africa, works for a positive U.S. policy toward Africa and supports African human rights, democracy and development.

The following is the full text of the resolution:

National Black Caucus of Local Elected Officials Resolution Supporting Debt Forgiveness and Relief For African Countries March 12, 2000 at Washington. D.C.

WHEREAS the National Black Caucus of Local Elected Officials (NBC-LEO) is committed to economic and social justice for Africa and to the importance of Africa for NBC-LEO and its constituents; and

WHEREAS Africa is laboring under a debt burden that stifles life, economic progress, and political stability; and

WHEREAS the debt burden translates into $400 for every African man, woman and child on a continent where the average annual wage for most countries is less than $400 per person; and

WHEREAS African countries cannot move forward with needed modernization and improvement of the lives of African people with this continuing debt burden; and

WHEREAS it is in the interest of all cities and their citizens that poverty reduction in Africa be supported by the United States; and

WHEREAS after hundreds of years of exploitation of Africa's natural and human resources, modern African nations lack the ability to repay international debt incurred for survival in the aftermath of this exploitation; and

WHEREAS thirty-five of the world's forty most debt burdened countries are in sub-Saharan Africa; and

WHEREAS in response to the international campaign for poor country debt cancellation, the leaders of the G-7 adopted the Cologne Initiative in June, 1999; and

WHEREAS the Cologne Initiative includes a provision for deeper relief of more highly indebted poor countries and President Clinton has requested supplemental funding from Congress to meet the United States' commitment made at Cologne in connection with this debt eradication plan;

THEREFORE BE IT RESOLVED BY THE NATIONAL BLACK CAUCUS OF LOCAL ELECTED OFFICIALS, AS FOLLOWS:

Section One. The National Black Caucus of Local Elected Officials supports full funding for the Cologne Initiative to address debt reduction and debt elimination in sub-Saharan Africa.

Section Two. NBC-LEO urges the U.S. Senate Appropriations Committee to include $210 million for the fiscal year 2000 supplemental bill for Heavily Indebted Poor Countries (HIPC) Trust Fund.

Section Three. NBC-LEO urges full approval of the $600 million for the HIPC Trust Fund over the next three years consistent with the Cologne Initiative.

Section Four. NBC-LEO requests that poor country debt cancellation be supported by the United States to improve the political and economic development of African countries and the lives of the African people.

ADOPTED BY THE NATIONAL BLACK CAUCUS OF LOCAL ELECTED OFFICIALS this twelfth day of March, 2000, in Washington, D.C.

Roosevelt Coats, Council Member, Cleveland, Ohio

President, NBC-LEO


Jubilee 2000/USA Campaign
June 8, 2000

Congress Needs Pressure Now!

==> Immediate, special focus on members of the House Appropriations Committee! Subcommittee vote on debt relief financing June 13; Full Committee vote week of June 19! We must urge that the full appropriation be approved, as a step toward the goals of Jubilee 2000 -- phone calls and faxes needed now! (details below)

Issue: The House Foreign Operations Appropriations Subcommittee is scheduled to vote on a foreign aid spending bill for FY2001 next Tuesday, June 13. Debt relief for impoverished countries will be one of the principal matters under consideration. Then, the following week, the week of June 19th, the full Appropriations Committee will take up the matter.

Everyday, over 18, 000 children die as a result of the burden of debt on impoverished nations (according to UN statistics). A total of $810 million is required for bilateral and multilateral debt relief, requested to fulfill the US commitment to the Cologne debt initiative. This funding is intended to allow as many as 33 heavily indebted poor countries to receive substantial debt relief by 2003. To fulfill this commitment, $435 million is needed by the end of fiscal year2001, with the remainder provided in FY2002-2003. Additionally, Congress must not delay debt relief by tying it to additional conditions.

Senate appropriators have only allocated a paltry $75 million thus far. It was expected last month that the full Senate might act on the spending bill during May. However, the Senate leadership has decided to defer floor action until the House has acted on its version of the bill. Thus, House action on the bill is critical at this stage!

While Jubilee 2000/USA is insisting on definitive cancellation of crushing debt, without harmful conditions, the Campaign strongly believes that full financing of the Cologne Initiative could deliver substantial debt relief for some countries that are desperately in need, as an initial step forward. The Campaign welcomes a debate on the powers of the IMF and the World Bank, but believes that debt relief financing should not be held hostage to that debate. (See more info in Background, below).

==> News flash: Today, eighty-one members of the House of Representatives sent a letter, co-authored by Reps Waters and Campbell, to House leaders (Rep. Armey and Rep. Gephardt) urging support for full funding of debt relief for impoverished countries!

Action: Urge members of the House Appropriations Committee to approve a minimum of $435 million in the FY2001 foreign aid spending bill to fund multilateral and bilateral debt relief for the world's impoverished countries, without added conditions that harm people or the environment, as a step toward the Platform goals of Jubilee 2000/USA. For residents of the relevant districts (see list below), contact Committee members by phone and fax. FLOOD THOSE OFFICES WITH CALLS! Note: calls and faxed letters are preferred over email messages. Ask for the staff person in the Representative's office who handles foreign aid spending. (These mark-ups may be covered on the cable TV network C-Span...check the schedule at http://www.c-span.org )

If your House member is not on this committee, contact your Representative's foreign policy aide and urge that he/she contact Committee Chairperson Young's office, urging that a full appropriation be approved.

You don't need to be an expert!! For additional talking points or any help call David Bryden at 202-783-0214. (Note: next month request a personal meeting with your legislator to take place during the August recess.)

(See contact info for Members of Congress below)

Additional Background:

Last year, President Clinton and leaders of other industrial countries agreed to write off approximately $90 billion in debt for about 33 impoverished countries. This $90 billion in debt cancellation would cost creditors $27 billion primarily due to heavy discounting of the face value of the loans.

Unfortunately, Congress has yet to fully fund the Administration's commitment of $920 million over four years toward this global debt reduction plan. Funding, particularly the amount needed for *multilateral* debt reduction, is critical to the success of the plan, as other wealthy nations are waiting for the U.S. to take the lead before unlocking billions of dollars in contributions. The delay is already being felt by debtor countries. Bolivia, for example, has been declared eligible for new debt relief under the plan, but must wait because the necessary funding is not available.

Thus far, Congress has authorized cancellation of 100% of United States *bilateral* debt owed by heavily-indebted poor countries, and it appropriated $110 million for this purpose for FY2000. The Senate Appropriations Committee has approved appropriation of $75 million for bilateral debt reduction for FY2001. In the House, a decision on the amount to be included for debt relief in the foreign aid appropriations bill for FY2001 is pending before the Subcommittee on Foreign Operations.

No funds have been appropriated so far for multilateral debt reduction. However, the House Banking Committee (last year) and the Senate Foreign Relations Committee (this year) authorized appropriation of the amounts needed for *multilateral* debt reduction. The Senate Banking Committee has also taken the matter under consideration, and the committee chairman (Sen. Gramm, R-TX) wants to make authorization of multilateral debt reduction conditional on changes in the operation of the International Monetary Fund. (If your Representative raises the issue of IMF "reform," we suggest you say that while changes at the IMF are needed, it is likely to be a long, complex process and should not be allowed to cause further delays in debt relief for struggling countries.) The appropriation needed for multilateral debt reduction in FY 2001 is $360 million.

The total appropriation needed for FY2001 is $435 million ($75 million bilateral, $360 multilateral). Another $375 million will be needed for multilateral and bilateral debt reduction in FY2002 and 2003. These amounts, added to the $110 million appropriated last year, will complete the U.S.'s $920 million contribution to the global plan. The Administration has requested an advance appropriation of $375 million covering the needs for FY2002 and FY2003, but we suggest focusing at this time on the $435 million needed for FY2001.

For the full Jubilee 2000/USA position statement see <http://www.j2000usa.org/updates/clinton4.html>

House Appropriations Committee:

Name, phone, fax, email:

* Representative belongs to the Subcommittee on Foreign Operations, voting June 13. The full Committee will take up the matter the following week of June 19th

More contact info on these and other members is available at http://www.house.gov/

Aderholt, Robert, AL, (202)225-4876, (202)225-5587,
robert.aderholt@mail.house.gov

Bonilla, Henry, TX, (202) 225-4511, (202) 225-2237

Boyd, F. Allen, FL, (202) 225-5235, (202) 225-5615

*Callahan, Sonny, AL, (202) 225-4931, (202)225-0562,
sonny.callahan@mail.house.gov

Cramer, Bud, AL, (202) 225-4801, (202) 225-4392,
budmail@mail.house.gov

Cunningham, Randy, CA, (202) 225-5452, (202) 225-2558

DeLauro, Rosa, CT, (202) 225-3661, (202) 225-4890

DeLay, Tom, TX, (202) 225-5951, (202) 225-5241

Dickey, Jay, AR, (202) 225-3772, (202) 225-1314,
talk2jay@mail.house.gov

Dicks, Norman D., WA, (202) 225-5916, (202) 226-1176

Dixon, Julian C., CA, (202) 225-7084, (202) 225-4091

Edwards, Chet, TX, (202) 225-6105, (202) 225-0350

Emerson, Jo Ann H., MO, (202) 225-4404,
joann.emerson@mail.house.gov

Farr, Sam, CA, (202) 225-2861, (202) 225-6791,
samfarr@mail.house.gov

Forbes, Michael P., NY, (202) 225-3826, (202)225-3143,
mike.forbes@mail.house.gov

Frelinghuysen, Rodney, NJ, (202)225-5034, (202)225-3186,
rodney.frelinghuysen@mail.house.gov

Goode, Virgil H., VA, (202) 225-4711, (202) 225-5681,
rep.goode@mail.house.gov

Granger, Kay, TX, (202) 225-5071, (202) 225-5683,
texas.granger@mail.house.gov

Hinchey, Maurice, NY, (202) 225-6335, (202) 226-0774,
mhinchey@mail.house.gov

Hobson, David L., OH, (202) 225-4324, (202) 225-1984

Hoyer, Steny H., MD, (202) 225-4131, (202) 225-4300

Istook, Ernest, OK, (202) 225-2132, (202) 226-1463,
istook@mail.house.gov

*Jackson, Jesse, IL, (202) 225-0773, (202) 225-0899

Kaptur, Marcy, OH, (202) 225-4146, (202) 225-7711,
rep.kaptur@mail.house.gov

*Kilpatrick, Carolyn Cheeks, MI, (202) 225-2261, (202) 225-5730

*Kingston, Jack, GA, (202) 225-5831, (202) 226-2269,
jack.kingston@mail.house.gov

*Knollenberg, Joseph, MI, (202) 225-5802, (202)226-2356,
rep.knollenberg@mail.house.gov

Kolbe, Jim, AZ, (202) 225-2542, (202) 225-0378, jim.kolbe@mail.house.gov

Latham, Tom, IA, (202) 225-5476, (202) 225-3301,
latham.ia05@mail.house.gov

*Lewis, Jerry, CA, (202) 225-5861, (202) 225-6498

*Lowey, Nita M., NY, (202) 225-6506, (202) 225-0546,
nita.lowey@mail.house.gov

Meek, Carrie, FL, (202) 225-4506, (202) 226-0777, cpm@mail.house.gov

Miller, Dan, FL, (202) 225-5015, (202) 226-0828,
miller13@mail.house.gov

Mollohan, Alan B., WV, (202) 225-4172, (202) 225-7564

Moran, James P., VA, (202) 225-4376, (202) 225-0017,
jim.moran@mail.house.gov

Murtha, John P., PA, (202) 225-2065, (202) 225-5709,
murtha@mail.house.gov

Nethercutt, George R., WA, (202)225-2006, (202)225-3392,
george.nethercutt-pub@mail.house.gov

Northup, Anne Meagher, KY, (202) 225-5401, (202)225-5776,
rep.northup@mail.house.gov

Obey, David R., WI, (202) 225-3365

Olver, John, MA, (202) 225-5335, (202) 226-1224

*Packard, Ron, CA, (202) 225-3906, (202) 225-0134,
rep.packard@mail.house.gov

Pastor, Ed, AZ, (202) 225-4065, (202) 225-1655,
ed.pastor@mail.house.gov

*Pelosi, Nancy, CA, (202) 225-4965, (202) 225-8259,
sf.nancy@mail.house.gov

Peterson, John E., PA, (202) 225-5121, (202)225-5796,
john.peterson@mail.house.gov

*Porter, John Edward, IL, (202) 225-4835, (202) 225-0837

Price, David E., NC, (202) 225-1784, (202) 225-2014,
david.price@mail.house.gov

Regula, Ralph, OH, (202) 225-3876, (202) 225-3059

Rogers, Harold, KY, (202) 225-4601, (202) 225-0940,
talk2hal@mail.house.gov

Roybal-Allard, Lucille, CA, (202) 225-1766, (202) 226-0350

*Sabo, Martin Olav, MN, (202) 225-4755, (202)225-4886,
martin.sabo@mail.house.gov

Serrano, Jose, NY, (202) 225-4361, (202) 225-6001,
jserrano@mail.house.gov

Skeen, Joe, NM, (202) 225-2365, (202) 225-9599,
joe.skeen@mail.house.gov

Sununu, John E., NH, (202) 225-5456, (202) 225-5822, rep.sununu@mail.house.gov

Taylor, Charles H., NC, (202) 225-6401,
repcharles.taylor@mail.house.gov

Tiahrt, Todd, KS, (202) 225-6216, (202) 225-3489,
tiahrt@mail.house.gov

Visclosky, Peter J., IN, (202) 225-2461, (202) 225-2493

Walsh, James T., NY, (202) 225-3701, (202)225-4042,
rep.james.walsh@mail.house.gov

Wamp, Zachary P., TN, (202) 225-3271, (202) 225-3494

*Wicker, Roger F., MS, (202) 225-4306, (202)225-3549,
roger.wicker@mail.house.gov

*Wolf, Frank R., VA, (202) 225-5136, (202) 225-0437

Young, C.W., FL, (202) 225-5961, (202) 225-9764

Sample letter to be faxed (If writing in the name of an organization, be sure to use letterhead):

June XX, 2000

NAME House Appropriations Committee United States House of Representatives Washington, DC 20510-4302

Dear Representative XX:

I urge you to act promptly to appropriate critically needed funding for debt relief for impoverished countries, as a critical step toward the goals of the Jubilee 2000 campaign, which I support. Last fall it was announced that as many as 11 countries would receive debt relief as soon as this April through the debt initiative agreed to by the G-7 in Cologne. To date, only five countries have benefitted. Debt relief must not be further delayed! According to United Nations statistics, over 17, 600 children under the age of five die a day in these highly indebted and impoverished countries.

Congress must appropriate the $810 million for bilateral and multilateral debt relief, requested to fulfill the US commitment to the Cologne debt initiative. This funding is intended to allow as many as 33 heavily indebted poor countries to receive substantial debt relief by 2003. To fulfill this commitment, $435 million is needed by the end of fiscal year 2001, with the remainder provided in FY2002-2003. Your decisive action for full funding will send a strong message to Senate appropriators who have only allocated a paltry $75 million thus far. Additionally, Congress must not delay debt relief by tying it to additional conditions.

It is crucial to the international debt relief effort that the U.S. Congress fully support the President's request. This contribution will cost little and leverage much. Every $1 contributed by the US will be matched by over $27 from other creditors. The total package is intended to cancel $90 billion in debts owed by these countries. Congress should also act to permit the remainder of the IMF re-evaluated gold reserves designated for debt relief to be used for that purpose and that purpose only.

Sincerely,


This material is being reposted for wider distribution by the Africa Policy Information Center (APIC). APIC provides accessible information and analysis in order to promote U.S. and international policies toward Africa that advance economic, political and social justice and human and cultural rights.

URL for this file: http://www.africafocus.org/docs00/debt0006.php