Church symposium calls for more action on illegitimate debt

Representatives of governments, multilateral organisations, churches and civil society movements concluded an international symposium on illegitimate debt with a joint agreement to push for further political and legal action on sovereign debt crises and their impact at national and global levels.

The agreement was made at the International Symposium on Illegitimate Debt, co-organised by the Norwegian Church Aid, Church of Sweden and the Lutheran World Federation (LWF), 21-23 October in Oslo, Norway.

One of the most outstanding achievements of the gathering was the ability of delegates "to use the communicative space it provided as an opportunity to accept the other as a legitimate counterpart," said Rev Atle Sommerfeldt, NCA General Secretary according to Lutheran World Information.

The symposium was not about political positions, ideologies or agendas, remarked Sommerfeldt, referring to the variety of expertise in attendance - more than 60 representatives of governments, church bodies, international and regional financial institutions, United Nations agencies and civil society organisations.

"Its outcome reflects our concern for those who suffer the real impacts of sovereign debt ... [and] are deprived of their basic rights as global citizens," he said.

The final document summarises the experiences that were shared at the forum, and lists 14 generally agreed viewpoints with regard to deepening the concept of illegitimate debt and to establishing a foundation for a new international legal framework for debt management and resolution. The "legitimacy" questions are generally related to the ways in which loans are contracted, the conditions attached to such loans and their use.

The participants agreed that ongoing discussion regarding the precise legal status and content of the concept of illegitimate debt should not impede further political or legal action on the issue. They noted it is nevertheless important to continue with the concept development, as relevant criteria could be drawn from academic legal writings and state practice, among other sources.

"Political and legal approaches to the challenges of illegitimate debt are not mutually exclusive, but complementary approaches. Legal actions have to be accompanied by a political strategy, and political initiatives will invariably require legal support and follow-up," they stated.

A proposal calling for consideration of a referral to the International Court of Justice for an advisory opinion on the legal aspects of external debt reflects the participants' emphasis on the importance of further official debt audits, such as the one conducted by Ecuador, and the need to follow up concretely on the eventual prosecution of legal violation cases.

Describing Norway's unilateral and unconditional cancellation of debt claims against five developing countries as "a very positive step forward" and an important example to other lenders, the participants underscored the Norwegian practice that creditor co-responsibility was not counted as official development assistance.

The public's responsibility is clearly spelt out in an affirmation of civil society's indispensable role in mobilising political will, and in proposing and supporting legal interventions with regard to illegitimate debt and creditor co-responsibility.

The participants identified possible follow-up actions through the UN financing for development Doha Review Conference and the Paris Club discussions. The suggestions also include national legislation, citizens' audits, transparency and accountability in budget processes and coherence of government policy, among others.

Sovereign lending and borrowing is not just a matter of finance and economics, but of politics, law, justice and ethics. Further efforts were therefore urged in promoting reflection on the relationship between foreign debt and human rights, for which guidelines could be developed in cooperation with the UN Special Rapporteur on foreign debt and human rights.