Massive debts owed to wealthy governments and banks by poor countries are preventing the poorest people from getting the basics they need like health and education services.

No!

No again! Despite advances made by public movements leading up to 2000 (Jubilee 2000) and the G8 meetings in 2005 (MAKEPOVERTYHISTORY), more than 100 countries are still in need of some form of debt cancellation. It is CANCELLATION they need:

• Not FORGIVENESS (forgive: “stop feeling angry or resentful towards [someone] for an offence or mistake” Oxford English Dictionary)
• Not RELIEF (when debts are relieved, they are rescheduled or refinanced, and still need to be paid off, just over a longer period or different terms)
• But CANCELLATION (removal of the debt so repayment of interest or principal is not required)

Debt cancellation is not a charitable act on the part of the wealthy, it's a responsibility.

Debt prevents nations from improving the lives of their citizens.

With compounding interest and lengthy repayment plans, debtor countries have already repaid many times more than the initial loan, and still owe even greater amounts.

Interest payments suck up resources that could be better used for education and healthcare, contributing to the exclusion and impoverishment of millions of people, generation after generation.

Debt cancellation is an excellent poverty-reduction tool!

• The World Bank’s US$3 billion write-off to Tanzania in 2001 allowed 1.66 million more children to start school in 2002 - twice as many as in the previous year
• The debt cancellation that Zambia received in 2006 was used to abolish fees for healthcare in rural areas and much more

Another major concern are the conditions attached to new loans, rescheduled loans and even debt relief. While donors have the right to require their money is used appropriately, there has often been a focus on implementation rather than results in terms of poverty reduction.

Loan conditions often reduce government budgets and involvement and so take away their control of the future direction of their nations. These conditions have adversely affected poor families, meaning they have to pay for basic human rights such as education and healthcare.

Although New Zealand does not have any loans owed directly to it, as a stakeholder in the International Monetary Fund and World Bank, we have a say in the cancellation of debt owed to these agencies.

We should use our voice to keep 100 per cent debt cancellation on the agenda and make sure any future loans or grants made by these institutions do not come with harmful strings attached.

• Because World Vision is concerned about countries’ debts contributing to poverty, it plays an active part in Jubilee Aotearoa: Debt Action Network
• Internationally, World Vision engages in research about debt. See World Vision's International policy and advocacy website