Schoolchildren urge MPs to act on debt crisis

Schoolchildren and campaigners from across the UK visited Parliament this week to urge MPs to address the global debt crisis which is engulfing many poor countries around the world.

They're calling for a new Debt Justice Law, to create a fairer global system for low-income countries facing insurmountable levels of debt. The aim is to target irresponsible, 'loan-shark' behaviour - seen in some private creditors over the years - who are able to avoid accountability but rake in profits from unfair lending to poorer countries, burdening them with debt that can never be repaid.

The result is what's being called a 'global debt crisis', where some of the world's poorest countries are forced to spend more on payments to big banks and hedge funds than on health, education or life-saving climate measures. Fifty-four countries - from Sri Lanka to Kenya - are facing debt distress today.

The parliamentary reception was arranged by Catholic overseas aid charity CAFOD (Catholic Agency for Overseas Development). Campaigners were able to meet MPs and raise concerns about loans being made by predatory lenders, often at extortionate interest rates.

With more than 90 per cent of debt contracts governed by English law, MPs can play an important role in tackling the crisis. Parliamentarians could pass a law to force lenders to cooperate in debt relief negotiations and stop them from demanding payments from countries in crisis - providing valuable protection and relief to 54 countries, at no cost to the British taxpayer.

Speakers at the event included Anneliese Dodds, former Minister of State for Development, and Brian Maeba, from CAFOD partner Jesuit Hakimani Centre, who spoke movingly about the debt crisis in his own country:

"Kenya is deeply stuck in debt. Because of the debt crisis, money is going to paying off debt instead of going to health, education and agriculture. People in Kenya are going to bed hungry and young people can't go to school. That's why we are here today. Together, we can build a future where the burdens of debt no longer weigh heavily on the shoulders of those who can least afford it."

Maria Finnerty, Lead Economist at CAFOD, said: "It is great that so many people could come to the event to campaign about tackling the global debt crisis which is engulfing poor countries. Taking action on unfair debts would not cost the UK taxpayer anything but would make an enormous difference in the lives of the most vulnerable people around the world."

Nuala Kennedy, a teacher from St John Vianney school in Tottenham who was at the event with children from her school, commented on what she'd learned about the crisis: "Global debt is like a spiral. The intention should be that people get out of debt. But debt collectors keep adding interest, adding interest, adding interest, so nobody is going to get out of this. It's eye opening."

Lisa McDermot, an RE teacher from St Augustine's in Ealing, also shared her concern: "It's the injustice of it. It's just not fair. How can the developing world get out of the catch-22 cycle of debt when they're spending so much more on paying interest repayments rather than investing in infrastructures? Like education and healthcare."

Lisa added: "It's rooted in our Catholic social teaching - the dignity of the person. How can we say we need to give X amount to a huge multi-national bank when that should be going to feed and educate people?"

Pope Francis has called for Catholics to be 'Pilgrims of Hope' this Jubilee year, urging them to push for rich governments to cancel debts of countries that "will never be able to repay them". Jubilee years traditionally happen every 25 years in modern day, and have been marked by the cancellation of debts since Biblical times.

CAFOD is encouraging anyone concerned about the global debt crisis to write to their MP, asking them to call on the Chancellor, Rachel Reeves, to pass a Debt Justice Law.