UK Government 'Blocking Debt Relief' for World's Poorest Countries Following Corporate Lobbying
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The UK Government is one of the biggest obstacles to the world's poorest countries securing debt relief, according to a coalition of aid organisations ahead of a crucial international development conference.
Christian Aid, the non-profit coalition Bond, and other campaign groups have accused the UK of blocking proposals that would help developing nations tackle their crippling debt burdens, despite promises to reset relationships with the global south.
The criticism comes as world leaders prepare for the United Nations' Fourth International Conference on Financing for Development (FfD4) in Seville (Spain) from 30 June. The week is set to see the most politically significant development negotiations of the decade.
On Tuesday (18th June), world leaders in in New York agreed a draft agreement ahead of the conference. But it has received heavy criticism from aid groups. "It falls far short of the ambition needed to address the worsening debt and climate crises, poverty and inequalities in the global south," according to the European Network on Debt and Development (Eurodad).
Negotiations for it began with "ambitious language on sovereign debt architecture reform, international tax cooperation and international development cooperation, and development finance more broadly" - but it has been "significantly weakened during negotiations, with many meaningful action-oriented commitments diluted due to the policy priorities of Global North governments," a Eurodad spokesperson said.
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Jean Saldanha, Director of the European Network on Debt and Development (Eurodad) hit out at the "lowest common denominator" agreement seemingly being pushed through.
"What began as a critical opportunity to advance essential reforms that would give Global South countries a seat at the decision-making table was ultimately derailed by sustained pressure from Global North countries, including the EU and UK, to pursue their policy agenda," she said.
The draft plan, if approved in Seville later this month, would make debt restructuring processes faster, more predictable, and development-oriented while providing developing countries with better tools and support to manage their debt burdens sustainably. Developing nations facing natural disasters would be able to pause debt repayments.
But Saldanha added: "While there is some positive language in the document, at a time when global south countries have been calling for the transformation of the international financial architecture, rich countries have once again shown their reluctance to give up their grip on the global economic system."
Crippling Debt Crisis
The forthcoming UN conference takes place against a backdrop of what campaigners call the "worst debt crisis in history" - beyond that faced at the peak of campaigning at the turn of the millennium.
According to UN data, 48 developing countries now spend more on interest payments than on education or health, a problem affecting approximately 3.3 billion people.
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Jennifer Larbie, Head of Campaigns and UK Advocacy at Christian Aid told a press conference on Tuesday: "It cannot be overstated how much the debt crisis is systematically locking low income countries in perpetual poverty….
"Africa...
For digital and print editions, packed with exclusive investigations, analysis, features, and columns….
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The UK Government is one of the biggest obstacles to the world's poorest countries securing debt relief, according to a coalition of aid organisations ahead of a crucial international development conference.
Christian Aid, the non-profit coalition Bond, and other campaign groups have accused the UK of blocking proposals that would help developing nations tackle their crippling debt burdens, despite promises to reset relationships with the global south.
The criticism comes as world leaders prepare for the United Nations' Fourth International Conference on Financing for Development (FfD4) in Seville (Spain) from 30 June. The week is set to see the most politically significant development negotiations of the decade.
On Tuesday (18th June), world leaders in in New York agreed a draft agreement ahead of the conference. But it has received heavy criticism from aid groups. "It falls far short of the ambition needed to address the worsening debt and climate crises, poverty and inequalities in the global south," according to the European Network on Debt and Development (Eurodad).
Negotiations for it began with "ambitious language on sovereign debt architecture reform, international tax cooperation and international development cooperation, and development finance more broadly" - but it has been "significantly weakened during negotiations, with many meaningful action-oriented commitments diluted due to the policy priorities of Global North governments," a Eurodad spokesperson said.
Don't miss a story
SIGN UP TO EMAIL UPDATES
Jean Saldanha, Director of the European Network on Debt and Development (Eurodad) hit out at the "lowest common denominator" agreement seemingly being pushed through.
"What began as a critical opportunity to advance essential reforms that would give Global South countries a seat at the decision-making table was ultimately derailed by sustained pressure from Global North countries, including the EU and UK, to pursue their policy agenda," she said.
The draft plan, if approved in Seville later this month, would make debt restructuring processes faster, more predictable, and development-oriented while providing developing countries with better tools and support to manage their debt burdens sustainably. Developing nations facing natural disasters would be able to pause debt repayments.
But Saldanha added: "While there is some positive language in the document, at a time when global south countries have been calling for the transformation of the international financial architecture, rich countries have once again shown their reluctance to give up their grip on the global economic system."
Crippling Debt Crisis
The forthcoming UN conference takes place against a backdrop of what campaigners call the "worst debt crisis in history" - beyond that faced at the peak of campaigning at the turn of the millennium.
According to UN data, 48 developing countries now spend more on interest payments than on education or health, a problem affecting approximately 3.3 billion people.
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Receive the monthly Byline Times newspaper and help to support fearless, independent journalism that breaks stories, shapes the agenda and holds power to account.
PAY ANNUALLY - £39.50 A YEAR
PAY MONTHLY - £3.75 A MONTH
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We're not funded by a billionaire oligarch or an offshore hedge-fund. We rely on our readers to fund our journalism. If you like what we do, please subscribe.
Jennifer Larbie, Head of Campaigns and UK Advocacy at Christian Aid told a press conference on Tuesday: "It cannot be overstated how much the debt crisis is systematically locking low income countries in perpetual poverty….
"Africa...
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