Senators Introduce Bill to Speed Development in Impoverished Nations

Senators Introduce Bill to Speed Development in Impoverished Nations

In an effort to eliminate the poverty afflicting billions of people around the globe and to strengthen America's standing worldwide, U.S. Senators Mike DeWine (R-OH), Joe Biden (D-DE), and Rick Santorum (R-PA) today introduced legislation that will speed development in struggling nations around the world.

Earlier this month the Finance Ministers of the Group of Eight countries agreed to provide 100 percent multilateral debt relief to Heavily Indebted Poor Countries (HIPCs). Their decision would immediately cancel approximately $40 billion in debt stock owed by 18 countries, and would result in the cancellation of nearly $56 billion in debt stock owed by 38 countries.

The Multilateral Debt Relief Act of 2005 would give the Administration the authorization they need to achieve this agreement.

"This is a historic opportunity to help in the development of the world's most indebted nations. With this relief comes the opportunity for further progress world-wide, not just in economic terms, but also in improving humanitarian conditions in these nations, " said Senator DeWine. "As we look ahead to the G-8 conferences, it is important to show that Congress has come together to support these impoverished nations."

"Relieving the debt burden for the poorest nations will significantly improve the lives of millions of people around the world. It makes good economic sense and as so many religious leaders from around the country have told us, it is the right thing to do," said Senator Biden, the top Democrat on the Foreign Relations Committee. "Poverty-stricken states are a fertile ground for drug production and trafficking, feeding our own drug problems here at home. With the scourge of AIDS and other diseases loose in the world, we cannot afford the existence of more states that cannot feed, house, educate, or inoculate their citizens. For all of these reasons and more we ignore the poverty that plagues other nations at our own peril."

"The cosponsors of this bipartisan bill stand united in supporting the historic agreement reached among finance ministers of the Group of Eight," noted Senator Santorum. "This agreement will help permit many of the world's poorest countries to devote their resources towards development, education, health care, and infrastructure--instead of transferring their critical financial resources to multilateral institutions in the form of debt service payments. I have been working with Senators Biden and DeWine for several years to authorize broader and deeper debt relief for the world's poorest countries. Our bill will provide the Administration with the authorization they need to achieve this historic agreement."

With the Enhanced Heavily Indebted Poor Country Initiative, the Congress has supported the Administration's effort to re-engage the world community on the issue of unsustainable debt burdens through negotiations with international and multilateral organizations. The goal was for the Administration to negotiate substantially reduced debt burdens for countries under the enhanced HIPC initiative. Additionally, Congress urged the Secretary of the Treasury to negotiate special treatment of HIPC countries struggling under a public health crisis.

Easing the debt burden of HIPC countries is fully consistent with the Administration's fight against international HIV/AIDS, tuberculosis and malaria. Providing 100 percent debt relief for these impoverished nations will enable U.S. grants administered through the Millennium Challenge Account, to have a greater impact in speeding development. By forgiving HIPC nations' debt, their monies can support U.S. international development goals more effectively by directly addressing those needs rather that servicing World Bank or International Monetary Fund debt.

http://biden.senate.gov/newsroom/details.cfm?id=239714&&