Mr. Chairman, this is a moving moment to come to the floor of the House. And I was moved by the words of our Speaker, quoting the Pope and saying that we must have courage. Then, of course, the ranking member from Alabama got up and said,…
Mr. Chairman, this is a moving moment to come to the floor of the House. And I was moved by the words of our Speaker, quoting the Pope and saying that we must have courage. Then, of course, the ranking member from Alabama got up and said, Chairman Frank, that there were those who came back and said, I have seen it with my own eyes.
And this is what this bill is about. It is about people understanding that extending the opportunity to teach individuals the ability to fish, to reduce the debt, gives them a lifelong opportunity of survival.
Let me thank Chairman Frank, Congresswoman Waters and the ranking member of the full committee, my subcommittee chair, Mr. Payne, and Ms. Lee for their stick-to-itiveness on a very important concept, reduce the debt on the continent of Africa, and you give the opportunity to children and others to survive.
This is not a give-away. It is an effective tool to reduce poverty in some of the world's poorest countries. I've had the privilege and honor of representing this nation in my visits to place like Zambia, Zimbabwe, South Africa, Ghana in those early days, Nigeria, Angola and places where you might not imagine the poverty, Lesotho. Debt relief initiatives passed in 1999 and 2005 are benefiting more than two dozen countries in Africa and Latin America, just to the south of us.
Uganda is using the $57.9 million it has saved from debt cancellation on primary education to ensure a future for its children as well as much-needed improvements in malaria control, health care and infrastructure.
Many of us take for granted our public school system. But are you aware that children stay out of school because they don't have the fees, they don't have the money for books, and they don't have the money for clothing? In most African countries, and maybe in Latin American countries, school is not free. There is no concept of ``public school.'' Zambia, one of the poorest nations, is using its savings of $23.8 million on agricultural projects and to eliminate fees for health care in rural areas. Debt cancellations enable programs in Uganda and Zambia to directly help the people.
This is the face of America and the face of our faith, and it is saying that we care for the least of those. We are, in fact, a good Samaritan.
And so today, as we stand here, this is a time of jubilee, for this legislation not only reduces or excuses debt, but it also helps to restructure and finance new opportunities. This Act calls for the development of a responsible financing prime rate for the future. Debt forgiveness is a good short-term solution.
I thank the distinguished gentleman. Debt forgiveness is a good short-term solution, but to be truly effective, we must find a way to fix the broken system of international lending.
I am very grateful that our Financial Services Committee has been one of the most proactive in time of need. They are facing the economic crisis of Americans. They have not forgotten you. They are facing the economic crisis around the world. They are restructuring and looking at how we can unify our financial system here. We are, in fact, the keepers of our brothers and sisters as I started out by saying. We must have the courage that has been dictated to us and said to us today by the Pope who is visiting America. And it is good for our colleagues, who may
doubt this legislation, to go and see it with their own eyes. Once they do so, they will understand that this is absolutely the right direction. And might I just thank the AFL-CIO, the American Jewish World Service, the Church World Service, the DATA organization and others for their support.
I ask my colleagues to support this.
Mr. Chairman, I rise today in strong support of H.R. 2634, the Jubilee Act for Responsible Lending and Expanded Debt Cancellation. I am proud to join over 100 of my colleagues in cosponsoring this timely legislation. I would like to thank my colleague, Congresswoman Waters, for introducing this bill, as well as the Chairman of the Financial Services Committee, Congressman Frank, for his leadership on this important issue.
Countries throughout the world suffer from the heavy burden of debt. The inability of nations to escape from these financial commitments has profound impacts on any attempts they make at poverty reduction, health care, economic development, and sustainable growth. The Highly Indebted Poor Countries, HIPCs, the majority of which are located in Africa, are particularly crippled by debt. Nearly three years ago, we saw an outpouring of support for debt relief as G8 leaders met in Gleneagles, Scotland, to pursue a policy of poverty reduction. While some positive progress has been made since that meeting, it is absolutely undeniable that this is an issue on which a great deal remains to be done.
Today, we have an opportunity to take a positive and concrete step toward ending global poverty by helping needy and deserving low-income countries. The Jubilee Act expands existing debt relief programs for the world's poorest countries, and it includes measures to ensure that the benefits of debt relief are not eroded by future abusive lending.
Debt relief has, in the past, proved an effective tool to reduce poverty in some of the world's poorest countries. Debt relief initiatives passed in 1999 and 2005 are benefiting more than two dozen countries in Africa and Latin America. Uganda is using the $57.9 million it has saved from debt cancellation on primary education, to ensure a future for its children, as well as much needed improvements in malaria control, healthcare, and infrastructure. Zambia is using its savings of $23.8 million on agricultural projects, and to eliminate fees for healthcare in rural areas.
Debt cancellation has enabled programs in Uganda and Zambia to directly help the people of these nations. However, there are many impoverished and deserving countries that do not currently benefit from debt relief. The International Monetary Fund, IMF, and the World Bank continue to place restrictive conditions on debt cancellation, calling for policies requiring the privatization of essential services and the liberalization of trade in sensitive sectors in exchange for debt cancellation. These conditions are currently holding up desperately needed debt relief in several eligible countries, including Haiti, the Democratic Republic of Congo, and Liberia.
Mr. Chairman, the legislation we are considering today will not only bring the benefits of debt cancellation to more countries than ever before, it will also ensure that these benefits are felt by all strata of society. This bill would direct the Secretary of the Treasury to negotiate an agreement with the IMF and World Bank, as well as other bilateral and multilateral creditors, to make up to 25 additional low- income countries eligible for complete debt cancellation. Governments of these countries will be required to allocate the money saved through debt cancellation to poverty reduction programs, such as initiatives to improve economic infrastructure, basic education, nutrition, health services, and programs to redress environmental degradation.
This legislation does not remove all conditions from debt relief programs. Countries still must demonstrate transparent and effective budget and financial management systems, and they can be excluded from debt relief if they do not. In addition, countries committing massive violations of human rights are not eligible, nor are countries that support international terrorism, have excessive levels of military expenditures, or fail to cooperate on international narcotics control. The Jubilee Act encourages the developing of responsible financing standards, and assures financial transparency and accountability.
Finally, but perhaps most importantly, the Jubilee Act calls for the development of a responsible financing framework for the future. Debt forgiveness is a good short-term solution, but to be truly effective we must find a way to fix the broken system of international lending. Of particular concern to me has been the proliferation of vulture funds, which, like their avian namesake, seek to make a profit off of already weakened prey.
Mr. Chairman, vulture funds purchase the debt of countries (or companies) in financial distress. They then hold out for the full value of the debt, plus any interest, which they pursue through litigation, much of which takes place in U.S. courts. The inability of nations to escape from these financial commitments has profound impacts on any attempts they make at poverty reduction, health care, economic development, and sustainable growth. The Highly Indebted Poor Countries, HIPCs, the majority of which are located in Africa, are particularly crippled by debt. Though these countries may not appear to be the most profitable prey for vulture funds, which in theory prefer to purchase debt that a country has, or may in the future develop, the ability to pay, according to reports there are numerous lawsuits currently pending against HIPC countries.
Vulture funds, together with other forms of irresponsible lending, undermine international efforts to provide much needed debt relief to the world's most indebted poor countries. The Jubilee Act directs the Secretary of the Treasury to develop and promote policies to prevent bilateral, multilateral, and private creditors from eroding the gains of debt relief through irresponsible or exploitive lending. I am particularly pleased that this legislation takes this important step toward fixing broken systems of international lending.
I am proud to support the Manager's Amendment to this legislation, introduced by Congressman Frank, which adds additional conditions to the eligibility criteria for debt relief, including complying with minimum standards for eliminating human trafficking, cooperating with American efforts to stop illegal immigration, and being committed to free and fair elections.
I also support the amendment offered by my colleague Congressman Hastings of Florida. This amendment adds a Sense of Congress stating that, due to the current humanitarian and political instability in Haiti, including food shortages and political turmoil, the Secretary of the Treasury should use his influence to expedite the complete and immediate cancellation of Haiti's debts to all international financial institutions, or if such debt cancellation cannot be provided, to urge the institutions to immediately suspend the requirement that Haiti make further debt service payments on debts owed to the institutions. After deadly food riots last week in Port-au-Prince, which resulted in the death of a Nigerian UN peacekeeper, I believe that this amendment is both crucial and timely.
I also support the amendment introduced by my colleague Mr. Weiner. This amendment modifies the qualification for ``eligible low-income country'' to include those countries that are eligible for both International Development Association loans and World Bank loans.
Mr. Chairman, if we are serious about meeting the Millennium Development Goals, we must take concrete steps toward reducing poverty. Debt cancellation is a proven way to do this. This legislation has the support of numerous organizations doing excellent work around the world, including the AFL-CIO, American Jewish World Service, Church World Service, DATA, Debt AIDS Trade Africa, Jubilee USA Network, the ONE Campaign, Oxfam America, and RESULTS.
I strongly urge my colleagues to join me in supporting this important legislation.
I thank the distinguished gentleman and member of the Rules Committee, Mr. Hastings. I acknowledge, again, the members of the Financial Services Committee and Congresswoman Maxine Waters.
I salute the gentleman for this forthright and vital acknowledgment and sense of Congress in this bill.
Mr. Chairman, people are starving in Haiti. Haitians are starving, they are in the streets. They are crying out for relief. As was said earlier, this is the poorest country in the western hemisphere. President Preval has made a commitment to this Nation, and he has worked hard on political stability.
We have seen incarcerated persons who are held as political prisoners be released. But I think it is crucial that we join in a unified voice today to acknowledge that we stand against the starvation and the financial crisis that is in Haiti.
This is an important statement to cancel the debt to all international financial institutions and also such debt cancellation cannot be provided, to urge the institutions to immediately suspend the requirement.
I thank the distinguished gentleman for yielding to me, and I join them also on the request for TPS. I support the Hastings amendment.