October 20, 2005

BUENOS AIRES, Argentina/GENEVA – A group of Christian churches, social and political organizations from Africa, Europe, Latin America and the United States of America have affirmed their continued advocacy for the immediate cancellation of all illegitimate external debt.

Following a September 21-23 international consultation hosted by the Lutheran World Federation (LWF) member churches in Latin America and the Latin American Council of Churches (CLAI) in Buenos Aires, participants affirmed that the concept of illegitimate external debt, as discussed and recognized by the LWF Ninth Assembly in 2003, was based on a moral, ethical and legal viewpoint, rather than only on the narrow economic perspective adopted by many governments. "Debt is clearly illegitimate if it is unethical, immoral and odious," the consultation participants said in a statement.

The meeting was organized by the Argentine-based program on illegitimate debt sponsored by the LWF member churches in the Latin America and Caribbean region, in cooperation with the Latin America and Caribbean Desk of the LWF Department for Mission and Development. Discussions were held under the theme, "Illegitimate External Debt: From Prophetic Denunciation to Political Action."

The consultation's theme was presented from biblical, theological, pastoral, historical, economic and juridical perspectives. Participants heard about the different strategies, campaigns and debt cancellation initiatives in various parts of the world. It was affirmed that external debt servicing in many developing countries worldwide had led to the continued impoverishment of millions of people over more than three decades.

"The impoverishment and deaths produced by this debt are dramatically increasing. From the standpoint of our faith, we hear the call to address the issue of debt from the perspective of the victims," the 35 participants said. Their call for illegitimate debt cancellation stressed four areas of action, namely awareness building, mobilization, public advocacy and legal proceedings.

The church, civil society and political representatives stressed the need to cooperate with the United Nations independent expert on the effects of structural adjustment policies and foreign debt, particularly in relation to the drafting of relevant guidelines.

Discussing their concern for legal measures against those implicated, participants in the LWF/CLAI consultation emphasized that institutions and individuals responsible for the external illegitimate debt both in North and South could be identified.

They cited the G8 meeting – of the world's most industrialized nations – to be held in Germany in 2007, and the annual World Social Forums as focal points for campaigning for the cancellation of illegitimate external debt and for the creation of mechanisms that would prevent such debts in the future.

They described illegitimate external debt as "an instrument of domination and exclusion, a vehicle of the neo-liberal model," which impeded human development in several countries subjected to it. It "seriously affects the integrity of creation, mortgaging future generations," they added.

Lutheran World Information