G7 Statement Header 2022

This year’s G7 Summit is again approaching in a world that has seen little progressive change but has instead fallen deeper into debt bondage, inequality and impoverishment under a neoliberal system led and maintained by the richest countries. Bearing the heaviest yoke of debt burdens are the billions of people in the global south who have experienced the greatest threat to their survival and human rights during the COVID-19 pandemic. They remain in the grip of the multiple crises of health, economic recession, and intensifying climate change. These crises worsen under the weight of the accumulation and servicing of unsustainable and illegitimate debts, as well as fiscal consolidation under IMF loans. This has in turn led to worsening inequality, particularly among women, minorities, refugees and other marginalized groups.

 

The G7, with the support of the International Monetary Fund, the World Bank and private lenders, have persisted in pushing their debt “relief” measures – with dire consequences – and now promise “enhancements” in the face of failure. Many countries in the global south that entered the pandemic with existing high levels of debt are now deeper in debt than before as a consequence of both fiscal stimulus response measures to the pandemic and a low interest rate in a global context. This has fueled excessive lending and borrowing. As we warned, the inadequate, piecemeal, temporary and debt-creating responses of the G7/G20 solutions have missed the mark and only made conditions worse. They have shown, once more, their inadequacy in enforcing the participation of private lenders, to which global south countries have become heavily exposed. They have proven once again to be false solutions that are only eroding more livelihoods, deepening inequality, exacerbating the climate crisis, and threatening more lives, particularly in the wake of the current food and fuel price inflation shock.

 

Totally ignored is a major call from the global debt justice movement for the unconditional cancellation of public external debt payments by all lenders – bilateral, multilateral and private – for all countries in need for at least the next four years as an immediate step, and a clear program towards the unconditional cancellation of outstanding debt. No heed has been paid to the decades-long call by debt justice movements to establish a transparent and binding multilateral framework for debt crisis resolution that addresses unsustainable and illegitimate debt and provides systematic, timely and fair restructuring of sovereign debt, including debt cancellation, in a process convening all creditors.

 

Much of this debt is unsustainable and illegitimate. Loan conditionalities of austerity have contributed to the vulnerabilities of the global south to multiple crises that continue to plunge peoples into greater deprivation. Yet, payments for these debts continue to be claimed, without the benefit of any audit or review as to their questionable nature and terms. There also appears to be little serious concern for increasingly catastrophic climate change risks, and no regard for the scale and gravity of COVID-19’s adverse impacts on peoples’ health and lives, livelihoods and incomes, and the overall enjoyment of human rights. It is increasingly clear that the financial priorities of creditors supersede the human rights of people and nations across the global south.

 

We stress anew the urgency of canceling unsustainable and illegitimate debts to free up resources for immediate needs – for vital and universal healthcare, social protection, and other essential services and rights; to secure the safety and well-being of people and communities; to provide economic and structural assistance to affected, vulnerable and marginalized individuals, families and communities; to undertake urgent climate action, and build economies that are equitable, that uphold human rights, promote gender, race and ecological justice, and are climate resilient and compatible with the health of the planet.

 

Funds freed from debt cancellation should not be counted as part of fulfilling the obligation of global north and G7 countries to deliver climate finance for the global south. The refusal of global north leaders to meet their full obligations is costing the global south dearly in terms of urgently needed adaptation programs, coverage of climate-related loss and damage, ecological restoration, and the rapid and just transition out of fossil fuel energy systems. Meanwhile, more loans are being pushed forward as climate finance and there is a persistence in fossil fuel lending, plunging the global south deeper into debt, and exacerbating the climate crisis. The G7 and G20 are peddling more inadequate and/or false solutions such as debt-for-climate swaps which, at best, have brought meager relief, and at worst, legitimized dubious and harmful loans and brought in costly terms and conditionalities.

 

With stronger voices and an ever-growing reach, we reiterate our demands for debt justice:

● for immediate debt cancellation to enable people to deal with the multiple crises; to that end the G7 countries should enact national laws that make it mandatory for private creditors to participate in debt relief;

● for an end to the exploitation of peoples and destruction of the environment through lending;

● for the immediate delivery of new, additional and non-debt creating climate finance for adaptation, mitigation and loss and damage, far beyond the unmet $100 billion/year pledge, that adequately meets the needs of the global south;

● for stopping over-reliance on borrowing by supporting structural transformation across the globalsouth towards economic diversification and policy autonomy; and

● for systemic changes in financial and economic systems to stop the accumulation of unsustainable and illegitimate debt, to offer fair and comprehensive solutions to debt crises, and to build more equitable, just and post-carbon societies.

 

 

Join the Days of Action in the lead-up to and during the G7 Summit, from 24 - 28 June!

(More details to follow.)

 

Signatories

Regional/International Organizations/Networks

350.org

Turkey

Arab Watch Coalition

Middle East North Africa (MENA) Region

Asian Peoples' Movement on Debt and Development

Asia Region

Europe solidaire sans frontières (ESSF)

France

European Network on Debt and Development (Eurodad)

Europe

Fight Inequality Alliance

Global

Focus on the Global South

Thailand

Global Alliance for Tax Justice

France

Global Call to Action Against Poverty (GCAP)

Global

LDC Watch

Nepal

Migrant Forum in Asia

Philippines

Red Latinoamericana por Justicia Económica y Social (LATINDADD)

Peru

Southern African People's Solidarity Network (SAPSN)

SADC Region

Transnational Institute

Netherlands

Women's International Peace Centre

Uganda

 

Organizations

Diálogo 2000 - Jubileo Sur Argentina

Argentina

Bangladesh Nari Progati Sangha (BNPS)

Bangladesh

COAST Foundation

Bangladesh

Equity and Justice Working Group Bangladesh [EquityBD]

Bangladesh

Voices for Interactive Choice and Empowerment (VOICE)

Bangladesh

Global Social Justice

Belgium

Association au Secours des Filles Mères (ASFM )

Cameroun

Women Engage for a Common Future

Colombia

Association Jeunes Agriculteurs (AJA)

Côte d'Ivoire

Cadre d'Appui à l'Innovation et à l'Entrepreneuriat Social et Solidaire (CAPI-ESS)

Côte d'Ivoire

Plateforme Française Dette et Développement

France

erlassjahr.de - Entwicklung braucht Entschuldung (Jubilee Germany)

Germany

Instituto Centroamericano de Estudios Fiscales (Icefi)

Guatemala

Asociación Mujeres Emprendedoras de Alta Verapaz MEAV

Guatemala

Association For Promotion Sustainable Development

India

Centre for Budget and Policy Studies

India

Environics Trust

India

Fight Inequality Alliance, India

India

Himalaya Niti Abhiyan

India

Nadi Ghati Morcha - India

India

National Hawker Federation

India

Programme on Women's Economic Social and Cultural Rights (PWESCR)

India

Koalisi Rakyat Untuk Kak Atas Air (KRuHA)

Indonesia

Perkumpulan INISIATIF - Indonesia

Indonesia

University Student Chamber International (UNISC International)

Japan

Hope for Kenya Slum Adolescents Initiative

Kenya

Women's Rights and Empowerment Partnership in Africa (WREPA)

Kenya

Sustainable Rural Community Development Organisation

Malawi

Réseau CADTM Afrique

Mali

Equidad de Género: Ciudadanía, Trabajo y Familia

Mexico

All Nepal Peasants Federation

Nepal

Human Rights Alliance

Nepal

Humanitarian Accountability Monitoring Initiative (HAMI)

Nepal

INHURED International

Nepal

National Campaign for Sustainable Development Nepal

Nepal

Rural Reconstruction Nepal (RRN)

Nepal

South Asia Alliance for Poverty Eradication (SAAPE)

Nepal

South Asia Tax and Fiscal Justice Alliance (SATaFJA)

Nepal

Red Nicaragüense de Comercio Comunitario (RENICC)

Nicaragua

Debt Justice Norway

Norway

Crofter Foundation

Pakistan

Pakistan Fisherfolk Forum

Pakistan

Freedom from Debt Coalition

Philippines

WomanHealth Philippines

Philippines

Community Transformation Foundation Network (COTFONE)

Uganda

Bretton Woods Project

United Kingdom

Debt Justice UK

United Kingdom

Fresh Eyes

United Kingdom

Global Justice Now

United Kingdom

Jubilee Scotland

United Kingdom

Sisters of Charity Federation

United States

ActionAid Zambia

Zambia

 

Individuals

Lucilene Morandi

Brazil

Bodo Ellmers

Germany

Ausi Kibowa

Uganda

Corazon Valdez Fabros

Philippines

Messan Kounagbe

Bénin   

 

Translations: 

pdf2022 G7 Summit Statement (English)

pdf2022 G7 Summit Statement (Arabic)

pdf2022 G7 Summit Statement (French)

pdf2022 G7 Summit Statement (German)

pdf2022 G7 Summit Statement (Spanish)