21 April 2010
MSP Des McNulty travelled to Berlin last Monday to help work out fair and sustainable moves towards mechanisms towards debt reduction in the world’s poorest countries. The international conference, which took place on April 12, got expert heads together to come up with steps with meaningful global effects. The one-day seminar was attended by over 30 participants 

Debates were especially illuminating given the current economic crisis and highlighted the risk of a new debt crisis in the making in new regions and also in middle-income countries. The need to change existing procedures that deal with debt became clear, as was the need for more representation of the indebted countries.

The situation is vastly different from the 1980s as due to the global economic down with countries whose debts have previously been written off, accumulating fresh debts. Fresh funding for borrowers must be accompanied by a new mechanism to deal in a fair, equitable and comprehensive way with critical situations of sovereign over-indebtness.

They discussed a possible roadmap towards a reform of debt negotiation procedures, the relevant international framework and the involvement of debtor countries. For Des McNulty the key concern was that ‘debt issues have been given less priority than they should, as the issue of climate change has received increasing attention. Debt is not only an economic issue but is a human rights issue. It is unacceptable to subject developing countries to unfair debt repayment schemes.’ He stressed that this is an important issue and is keen that it does not lose momentum due to other issues such as climate change. 

Des McNulty also spoke at the Cross Party Group on International Development meeting, last wednesday (28April) at Holyrood, which discussied the twin injustices of tax and debt.