Norway sets down debt challenge to richer nations
The Norwegian government has taken the unprecedented step of cancelling debts owed by five poor countries on the grounds that they were incurred through Norway’s own “failed development policy”.Debt campaigners around the world hailed the move as an historic first step towards rich countries accepting responsibility for their part in creating poor countries’ debt crises through reckless and self-interested lending.
Kjetil G Abildsnes, chair of Jubilee Norway, welcomed the move, saying: “Norway now cancelling illegitimate debt and admitting co-responsibility for a failed development initiative is simply historic. The Norwegian government has shown political courage that won’t go unnoticed.”
Caroline Pearce, policy coordinator at Jubilee Debt Campaign (UK), commented: “Norway’s decision has set a new standard in creditor responsibility. Debt campaigners have long argued that not only unpayable but also unjust debts must be cancelled.
"The UK government must now examine the legitimacy of its outstanding debt claims. It is simply not acceptable for people in poor countries to keep paying off debts incurred through rich countries’ negligent, corrupt or politically-motivated lending.”
Norway is cancelling, without conditions, debts amounting to US $80 million being paid by Egypt, Ecuador, Peru, Jamaica and Sierra Leone. The debts arose from loans given in the late 1970s to prop up Norway’s ship-building industry, with little benefit for the borrowing countries.
Debt campaigners around the world have long been calling for cancellation of these kinds of ‘illegitimate’ debts, such as on loans knowingly given to dictators or for useless projects, and for responsible lending practices to avoid such loans in future.
