Debt cancellation

Debt has, for decades, been a key obstacle to developing countries ability to meet basic human needs such as health, education and food security. They have been shackled in the repayment of dubious and illegitimate debts that occurred as a result of the 1970s oil crisis, the Cold War and other arrangements between former leaders in developing countries and western nations.

By 2001 the crisis had reached immense proportions, with most developing country budgets allocating less than 15% of their budgets to the provision of basic services such as health, education and water, while more than 40% was being used to repay debts.

1996 saw the launch of the Heavily Indebted Poor Countries (HIPC) initiative, by the World Bank and IMF, and major steps were made towards debt cancellation in the late 1990s following the Jubilee Debt Campaign, and more recently, the 2005 Make Poverty History campaign.

Make Poverty History was a key driver in getting the leading western nations to agree to provide 100% of multilateral debt cancellation for 18 developing countries. Yet despite this breakthrough in governmental approaches to debt, many countries remain outside these initiatives, or are subject to the conditions put down by institutions such as the World Bank and IMF.

World Vision will continue to work as a member of the Jubilee Debt Campaign until debt relief is delivered in full, and its benefits are felt by the poorest communities worldwide.