Debt campaigns begin all over the world demanding: 100% debt cancellation for poorest countries

• At G8 summit in Cologne the G8 promise $100 billion in debt cancellation through an improved HIPC
  
  
• President Clinton promises 100% cancellation for debts owed to USA - all G8 except Russia, do the same
  
  
• Debt campaigners point out that even if $100 billion cancellation is delivered no countries debt will be wiped out entirely as the IMF/WB have not promised 100% cancellation of debts owed to them. Also cancellation is not automatic as countries have to go through HIPC programme first.

Huge public support for Debt Campaign puts pressure on IMF/WB/G8 to take action on debt

• The IMF/WB/G8 introduce a new programme they say will bring an end to the debt crisis. This is called the Heavily Indebted Poor Countries Initiative (HIPC)
  
  
• 42 countries are to be considered for debt cancellation under HIPC but the Debt campaigners identifies many more
  
  
• Debt campaigners identify many problems with HIPC eg it is very slow, does not cancel enough debt, controlled by IMF/WB, very complicated and difficult for countries to follow

24 million signatures for debt cancellation collected worldwide (850,00 in Ireland)

• Only a small amount of the $100 billion debt cancellation that was promised has actually been delivered
  
  
• 26 countries (out of original 42) have had some - not all - debts cancelled
  
  
• Some rich countries have cancelled debts owed to them - but this has been very slow
  
  
• IMF/WB have admitted that HIPC is failing to get countries out of crisis but have not produced an alternative
  
  
• Debt cancellation does work: In 10 countries that have had debt cancellation, spending on health has increased by 70%, spending on education increased by 30%, no increase in military expenditure
  
  
• Vital to keep pressure on IMF/WB/G8