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Report from the Motherland
Africa Action Calls on World Bank to Cancel Liberia’s Debt
Washington, DC--Nearly one year after her election to the presidency of Liberia marked an historic return to democratic rule after years of civil war in that country, Ellen Johnson-Sirleaf visits Washington, DC this week.
From October 16-18, she is petitioning for U.S. support of Liberia’s reconstruction efforts.
In the restoration efforts over the past year, Liberia has taken important steps and the international community has hailed the nation’s progress.
However, the U.S. and other countries’ pledges of increased aid will have little effect in the face of Liberia’s continuing heavy debt burden.
Africa Action recently joins with Jubilee USA and other debt campaigners calling on the World Bank to promote Liberian development by canceling the country’s debt.
Ann-Louise Colgan, acting co-executive director of Africa Action, said recently, "In order for the U.S. and other nations to live up to their promises of support for Liberia’s newly-emerging democracy, international creditors must cancel the country’s overwhelming debt immediately and without conditions.
"President Johnson-Sirleaf and her government must not be hampered in their urgent rebuilding efforts by the unfair demands of the international financial institutions."
Liberia’s total debt stock currently stands at $3.7 billion. This debt was accumulated during years of non-representative and corrupt rule, and the Liberian population did not benefit from these funds.
In a speech in Washington, DC earlier this week, President Johnson-Sirleaf underscored these factors as a significant hindrance to Liberia’s development.
Creditors have said that Liberia will not be eligible for any debt relief or cancellation until it submits $1.5 billion in back payments and accumulated interest.
Meanwhile, the Liberian government presently manages an annual budget of $80 million.
Africa Action recently stated that the stipulations on debt cancellation are unjust and unreasonable.
Marie Clarke Broil, acting co-executive director of Africa Action, said, "Liberia is saddled with a massive debt burden that poses a serious obstacle to future progress.
"President Johnson-Sirleaf’s visit provides an opportunity for activists in the United States to show their support for her government’s efforts and to urge international creditors to do the same, and call-in days this week reinforced this message."
On October 16 and 17, hundreds of activists telephoned World Bank President Paul Wolfowitz’s office, urging that he support immediate cancellation of Liberia’s debt.
Their message highlighted the pressing need for resources to provide for electricity, health and education, and that debt servicing constitutes an inhumane financial drain.
For more information on Africa Action’s Campaign to Cancel Africa’s Debt, see www.africaaction.org/debt.
