COC

debt-trade linkages

Debt forgiveness should be part of pro-development trade agenda, US NGOs tell Congress (October 2007)

Rethinking Bretton Woods | Sun, Oct 7, 2007

Debt forgiveness should be part of pro-development trade agenda, US NGOs tell Congress (October 2007)

As part of the efforts surrounding the Cancel Debt Fast, aimed at passing in Congress the Jubilee Act, being promoted by Jubilee USA, more than fifty organizations with diverse trade backgrounds have signed onto a letter addressed to members of Congress that argues debt cancellation needs to be a key component of a pro-development trade agenda.
 
Click here for the letter.

Click here for more information on the Jubilee Act.

 

CAFTA Rules on Sovereign Debt: Cementing the Chains of Debt (May 2005)

Rethinking Bretton Woods | Wed, Apr 13, 2005

CAFTA Rules on Sovereign Debt: Cementing the Chains of Debt (May 2005)

The rules of the Central American Free Trade Agreement (CAFTA) have been widely criticized by debt campaigners for embodying a model of development that is certain to maintain, if not worsen, the debt woes of its developing country members. In spite of this, CAFTA rules that directly govern the treatment of sovereign debt have received relatively little attention and exposure. In fact, by extending to sovereign debt the application of rules elaborated in the context of investment agreements and with the aim of protection of foreign investors (such as Most Favoured Nation, National Treatment and investor-state arbitration), CAFTA spares no effort to close all possible exits to the debt problems of Central American countries.
The Debt - Trade Connection in Debt Management Initiatives.   The Need for a Change in Paradigm (2004)

Rethinking Bretton Woods | Fri, Dec 10, 2004

The Debt - Trade Connection in Debt Management Initiatives. The Need for a Change in Paradigm (2004)

The close interrelationship between the asymmetries in the trade system and the chronic burden of debt faced by developing countries has not been sufficiently recognised in international economic policy. To the degree that debt and trade have been integrated in policy initiatives, they have been integrated from a particular perspective that has not proved helpful in supporting development. A change of paradigm is urgently needed. Debt reduction, or even cancellation, cannot have lasting benefits unless the trade dynamics that lead to debt accumulation are addressed. Likewise, proposals to reform the international trade system cannot be effective unless they incorporate a recognition of the crippling impact of debt on developing countries’ participation in that system.

This paper concentrates on the debt side of the problem. In essence, it explores the question: what would happen if a new paradigm for the interrelationship between debt and trade were to be applied in the debate on debt sustainability currently taking place within the Bretton Woods Institutions – the International Monetary Fund (IMF) and the World Bank?

The paper was published as a chapter contribution for "Debt and Trade: Time to Make the Connections", a book by the Jesuit Centre for Faith and Justice, on behalf of the International Jesuit Network for Development. Veritas Publications, 2005 (www.veritas.ie). Dublin, Ireland.