IMF Says Yes, Drop Haiti's Debt

by Te-Ping Chen · 2010-01-21 09:51:00 UTC
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Over the past week, members of the Paris Club (including the U.S., U.K. and France) rallied in their call to relieve Haiti's existing debt. Today, activists are greeting the latest two heavyweights to join their ranks: the IMF and World Bank.

Last week, news of the $100-million loan the IMF extended to Haiti was met with some consternation by debt relief activists and observers alike, with many (including this site) making the case that aid to Haiti should be given in the form of grants, not further loans.

Now comes an announcement from the IMF that the agency is currently working with all donors to "try to delete all Haitian debt,” including its newest loan. If the effort succeeds -- and the IMF's managing director, Dominique Strauss-Kahn, says she's confident it will -- even the latest $100-million dispersal will eventually become a grant.

What's more, this morning, the World Bank announced that it, too, supports debt relief, and will waive payments on the $38 million lent to Haiti for at least five years.

Good news, and activists around the world such as Jubilee USA are likewise hailing the IMF’s announcement as a victory. Naomi Klein, author of progressive opus The Shock Doctrine, says the IMF's turnaround is "unprecedented" in her experience, and testimonial to the fact that "public pressure in moments of disaster can seriously subvert shock doctrine tactics."

Right now, Haiti’s outstanding debt stands at some $1 billion, including money from Inter-American Development Bank ($447 million), Taiwan ($92 million), Venezuela ($295 million). Next week, Haiti's international donors will be meeting in Montreal to talk about debt relief and future reconstruction efforts. Meanwhile, the ONE campaign is continuing to pressure Treasury Secretary Timothy Geithner to urge countries to drop Haiti’s debt -- help them keep the pressure on here.

Photo Credit: Paul Miller

Te-Ping Chen Te-Ping Chen is a freelance writer and U.S. Truman Scholar whose writing has appeared in the Nation Magazine, the South China Morning Post magazine, Le Soir, and Slate.com.
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