"REORGANISATION FOR A BETTER WORLD"

by Charlotte Mwesigye (Jubilee Plus Uganda)

Abstracts from the paper which Charlotte used for her address to JDC Chester on 20th September 2002.

The most challenging issue for the world today is the ensuring of a Better World Order. Everyone is a stakeholder in this, both poor and rich. The acknowledged Millennium Goals of halving the number of people in extreme poverty by 2015, the communications revolution and growing International awareness are positives; but still 1 billion people live below the poverty line and that "poverty line" criterion is likely to be lower than acceptable by many. Africa is in need of special attention.

Africa is a beautiful continent of 54 countries. Its population growing towards 1 billion. It has substantial natural resources, e.g. Mineral, Water, Human and Tourist. It has been bedeviled by social, political, economic and natural disasters, exploitation and corrupt and incompetent leadership. Africans are fighting hard to overcome prejudice, local dictatorships, mismanagement and unfair trading terms imposed from outside. A tonne of Copper used to fetch £2000 in colonial days, it now fetches less than £600. Foreign exploitation together with a lack of public accountability and no democracy contributed to the Debt Burdens. Loans did not generate any economic growth. Responsibility for the ordinary African people is the standing requirement.

The first priorities are the provision of adequate Health and Education facilities. Uganda has channeled part of the savings on their Debt Cancellation towards the fight against H.I.V/Aids and the prevalence rate is down from 30% to 6%. Universal Primary Education is also high on Uganda’s agenda and progress made but more needs to be done. Labour Welfare and Justice in Trade is vital for Africa but Structural Adjustment Programmes imposed by the I.M.F have not respected this, sometimes made things worse. Real wages have fallen by 60% and Coffee prices have been cut by at least 2/3rds. Imposition by I.M.F. of the privatisation of utilities has meant, for instance increasing prices of electricity in Uganda by 600% causing much hardship as well as reduced consumption. This is all due to the World Bank and I.M.F. philosophy of ONE SHOE SIZE FOR ALL.

Uganda, with a population of approx. 24 million was the first to obtain Debt Cancellation, this has given relief of US$2Bn but at the same time WorldBank/IMF imposed policies have favoured Multinationals and the Private Sector to the detriment of Labour Welfare, Local Job Creation etc. and has resulted in failure to significantly raise standards of living for the majority. However, people living below the poverty line have reduced from 56% to 35%. Debt Relief has been largely ploughed into the Poverty Action Fund which has resulted in 10,000 new classrooms for primary education and an increase in numbers of children educated to Primary level from 2.5M to 6.5M. They are taught at pupil/teacher ratio of 111:1. However, fall out rates after primary education are very high. Public Health spending has also greatly increased but it still costs at least £2 at the entry point at a hospital.for people living on 75p per day [Our equivalent for hospital entry charge would be £60 at that rate Phl.] 93 Health Centres have been built together with1,700 Bore Holes, 1020 shallow wells, 980 springs and 9 gravity flow schemes. 900,000 additional people now have access to safe drinking water.

An essential part of the action on poverty in Uganda and other African states is the greater public scrutiny which is now made for the people. In Uganda there is more awareness of corruption and there is more of a universal approach to combating it. But still Uganda suffers from corruption and the decline in commodity prices. Only US$3.2 per person p.a. spent on health compared with US$12 per person p.a. on Debt Service. Infant Mortality is 9.1% and life expectancy 43 years. Uganda’s total Debt Stock is now US$3.622bn after all the debt relief.

[Cont’d]

Debts of US$1.743bn have been incurred in the last 2 years in respect of the Structural Adjustment Programs and the privatisation programme which accompanied those SAPs forced unemployment on demoralised workers and rendered many of them unproductive.

In conclusion, it is appreciated that some progress has been made, albeit at a cost, but much more is needed. Governments are challenged to give much more commitment to this but often the political will is not there. If action is not taken now there will be a high cost to pay. Genuine development partnership is what is needed. What has been done is appreciated but more effective approaches should be encouraged.

"We know they know what to do but have either refused to or failed to do so. All we urge them to do is heed to the call of the people with both proactive and reactive measures. We challenge you to meet your social obligations"

Part of the solution is for civil society to reclaim their powers to influence the policy makers. It is time for the people to play their true parts as citizens and demand accountability from those with power. This is a challenge of communication both down to the "roots" and also to the "top".

Jubilee Plus in Uganda This organisation is founded on the understanding that forgiveness and liberation is a command from God. A significant role in this is that played by the IMF/World Bank and the political leaders who control them. A bigger responsibility is on the recipients of Jubilee debt cancellation to utilize the new opportunity granted. Jubilee Plus Uganda appreciates that the International Financial Institutions have the means to provide the debt relief to all H.I.P.C. countries but this is only a starter, but a critical one, in the process of recovery and the movement towards the International Development Goals of cutting in half by 2015 the number of people living in abject poverty. National Leaders need to revive their moral authority in guiding their people to effective management and using their limited resources in the best way possible. Civil society also needs to use their networking capabilities to monitor and influence the situation in their countries.

The policy of US$ Loans is unfair. Any incentives given in low interest rates is overridden by currency exchange rates. A 50 year loan at 0.75% interest rate seems attractive until the exchange rate and local inflationary rates are brought into the account for payment of principal and interest after 50 years. These rates of inflation and currency exchange are outside the control of the HIPC countries and have a relationship with the primary commodity rates. The market price of Coffee is currently US$ 1.50 per 2.5 Kilos. This kind of exploitation, together with subsidies given in Developed Countries products and their high tariff barriers ensures an "unlevel playing field" in the Globalization Agenda. Jubilee Plus Uganda suggest that loans and exchange rates should be fixed to the market rate at the time of granting.

Intensified surveillance against corruption is also needed. Corruption on a petty scale is often put forward for delaying debt cancellation but this overlooks the Grand corruption embedded in the Bank and Funds Systems. The local people are shouldering that burden. The AES power loan of US$ 430m guaranteed by Uganda has shown high level corruption involving resignation of a Ugandan representative at the World Bank offices. This is not the only example of high level corruption.

Jubilee Plus Uganda looks for a transparent monitoring and evaluation mechanism all the way through on these large contracts. It demands a fair and transparent framework for Debt Relief, apportioning responsibility fairly for failed lending and a global comprehensive convention on corruption. Civil society must be involved in the monitoring, evaluation and supervision process to provide transparency. There should also be an international process which enables recovery of stolen resources.

"Jubilee Plus Uganda affirms its commitment to social activism for sustainable development in Uganda and Global Economic Justice."

( Reducing 17 pages of Charlotte’s paper has inevitably meant I have had to interpret what she has written, I apologize for any misinterpretation. PHL)