Bishop Bernardino Mandlate, Mozambique

» Mozambique: An Unnatural Disaster: In this Op Ed piece which appeared in the March 13, 2000 edition of the Toronto Star, Sara Stratton looks at the relation between Mozambique's debt and the March 2000 flooding disaster.

» See also the new Web version of Mozambique: The Social and Economic Cost of the Debt first published by ICCAF in 1998.

It will take decades for Mozambique to rebuild from the floods that have devastated the country. We should be concerned that recent floods in countries like Mozambique and Central America have been exacerbated by a combination of accelerating deforestation and climate change. Canadians have responded generously to the calls for assistance. However, Mozambicans are being forced to pay back over $2 million a week to service their debts during the most needy time in their history.

Mozambique has no outstanding bilateral debts to Canada. However, other countries affected by the flood, such as Madagascar, do. As well, Canada is benefiting from Mozambique's continuing debt slavery to the World Bank and the International Monetary Fund. The World Bank has recently announced only a one-year moratorium on Mozambique's debt servicing requirements. Moreover, it is offering only new loans to the beleaguered country for reconstruction which will only add to the country's intolerable debt burden. The IMF has not offered any debt relief to Mozambique.

In the midst of the country's worst ever crisis the World Bank's response seems to be to take advantage of the misfortune of others by behaving like an opportunistic loanshark.

By remaining indebted to the World Bank and IMF Mozambique will also be forced to continue to implement Structural Adjustment Programmes (SAPs). In Honduras, almost a year and a half after Canada committed to cancelling 100% of that country's debt in the wake of the devastation of Hurricane Mitch, cancellation is being held hostage to demands that Honduras first carry out unrelated requirements, such as the privatisation of its telecommunications system. While inappropriate even in the best of times, given the challenges these countries face to rebuild, continued adherence to SAPs can only be regarded as heinous.

We ask that you write a letter to Finance Minister Paul Martin and Prime Minister Chrétien and include the following demands (see below for sample letter).

1. Immediately implement complete debt cancellation for Madagascar and call on all creditor countries to immediately cancel all of the bilateral debts of Mozambique and other countries affected by the flood.

2. Instruct the Executive Directors of the World Bank and IMF immediately to implement a 100% cancellation of Mozambique's debts.

3. Call for an immediate halt to the implementation of Structural Adjustment Programmes.

4. Significantly increase development assistance to the region. Any assistance provided to Mozambique from the World Bank must be in the form of grants and not loans.

(Note: If you use the e-mail to fax gateway below, a copy of your letter will automatically be sent to CEJI.)

[Use today's date here]

Rt. Hon. Jean Chrétien [and/or Hon. Paul Martin]
House of Commons
Ottawa, ON  K1A 0A6

Dear [Mr. Chrétien / Mr.Martin]:

I am writing you to express my deep concern for the plight of the people of Mozambique. As you know the country continues to be hit by the worst flooding the region has ever witnessed. It will take decades for its people to rebuild their lives and their country. Moreover, we should be concerned that recent floods in countries like Mozambique and Central America have been exacerbated by a combination of accelerating deforestation and climate change. 

Canadians have been very generous in their support for the victims of the flooding. I am also grateful that Canada is offering assistance. I am, however, deeply concerned that while the international community extends one hand to assist with relief and reconstruction efforts, it continues to take back this support with the other hand through the continued debt payments that the country is forced to make. In spite of debt relief measures agreed to last year in response to Jubilee campaigns in Canada and worldwide, Mozambique continues to pay over $2 million a week to international creditors. I recognise that Mozambique does not owe any money to Canada directly. However, other countries affected by the flood, such as Madagascar, do. As well, Canada is benefiting from Mozambique's continued debt slavery to the World Bank and International Monetary Fund. These institutions have so far refused to cancel any of Mozambique's outstanding debts. 

By remaining indebted to the World Bank and IMF Mozambique will also be forced to continue to implement Structural Adjustment Programmes (SAPs). In Honduras, almost a year and a half after Canada committed to cancelling 100% of that country's debt in the wake of the devastation of Hurricane Mitch, cancellation is being held hostage to demands that Honduras first carry out unrelated requirements, such as the privatisation of its telecommunications system. While inappropriate even in the best of times, given the challenges these countries face to rebuild, continued adherence to SAPs can only be regarded as heinous. 

In the face of this human catastrophe I add my voice to that of Bishop Bernardino Mandlate of Mozambique: We call on the international community to cancel our debt immediately so that our country can concentrate on reconstruction. How can the international community continue to receive those meagre resources while watching the disaster on TV and saying, "What a pity."

Canada must take the following steps as a human response to this tragedy:

1. Immediately implement complete debt cancellation for Madagascar and call on all creditor countries to immediately cancel all of the bilateral debts of Mozambique and other countries affected by the flood.

2. Instruct the Executive Directors of the World Bank and IMF immediately to implement a 100% cancellation of Mozambique's debts.

3. Call for an immediate halt to the implementation of Structural Adjustment Programmes.

4. Significantly increase Canada's development assistance to the region. Any assistance provided to Mozambique from the World Bank must be in the form of grants and not loans.

Yours sincerely,

[Your name and address]