Third World Debt

Third World Poverty, Third World Debt: A Research Guide
for the Great Jubilee 2000

Introduction

Poverty in the Third World is a seemingly intractable problem. Economists, political scientists, sociologists, and public policy makers, have devised numerous strategies and policies to alleviate it. They have had little success. At the end of the Twentieth Century, it is estimated that 1.3 billion people around the globe live on less than $1 a day, and 3 billion people live on less than $2 dollars a day 1. The human suffering accompanying such abject poverty is incalculable.

This research guide is meant to aid those studying Third World poverty, and emphasizes resources which look at the relationship between a country's impoverishment and their debt to international financial institutions. The World Bank and International Monetary Fund (IMF), have declared 40 countries as being "Heavily Indebted Poor Countries". (This number only represents countries that meet certain criteria set by the two banks. There are many other countries with unmanageable debt and in desperate economic condition). These 40 countries owe a total of $213 billion to creditors. Obviously, this amount of debt places an enormous burden on these countries, and makes economic development and the meeting of human needs virtually impossible.

As we enter a new millennium, attention has shifted to the exorbitant debt of impoverished countries, and the role this debt plays in keeping its citizens poor. Nicaragua, for example, is one of the poorest nations in the Western Hemisphere. Its debt stands at $6.1 billion and requires 52% of the country's annual export earnings to service. It is also almost three times what Nicaragua spends on education and health care combined.2 Sufficient funds for housing, health care, education, and economic development projects can not be allocated if a country is burdened by enormous debt payments.

When reviewing the case of Nicaragua, or any of the other 39 countries described by the World Bank as "heavily indebted", it is hard to imagine how without debt forgiveness, or at the very least a substantial debt relief package, they can ever pay off their creditors. Thus organizations from around the world have mobilized and are calling for financial institutions to cancel the crushing debt of the world's poorest countries. Inspired by Leviticus 25 in the Old Testament, this movement of both religious and secular organizations has linked the debt crisis to the concept of Jubilee as found in Hebrew Scripture. According to Jewish law, every fifty years is declared a Jubilee year. It calls for land to lie fallow, debts to be forgiven, and slaves to be set free. It's a time for new beginnings and new relationships, a time for forgiveness and a time for justice. A time to cancel the external debt of poverty stricken nations and let them begin anew. A fresh start for everyone in the Great Jubilee 2000.

Brown, Lester R., Christopher Flavin, and Hilary French. State of the World 1999: A Worldwatch Institute Report on Progress Toward a Sustainable Society. New York: Norton, 1999. (REF HC59 .S734 1999)

The Worldwatch Institute's annual report on the state of the world, examines the trends of the global economy and the stress it places on the world's environmental resources. The report reviews overall consumption patterns, food production and distribution, use of forest products, the health of our oceans, world energy use, and the consequences of war on human and environmental progress. Throughout the report an outline is offered for an environmentally sustainable world economy.

Guy, Arnold. The Resources of the Third World. Chicago: Fitzroy Dearborn Publishers, 1997. (REF HC59 .A83358 1997)

The first section of this book explores the relationship between advanced economies and developing nations, and discusses the emergence of a single global economy. It addresses topics such as population growth, agricultural potential, and oil, and looks at how a nation's natural resources impact on its developmental progress. Part II of this work provides a brief survey of those countries the World Bank classifies as having low or middle income economies. These surveys include an assessment of a country's agricultural potential, manufactoring and mining industries, the state of its infrastructure, and political climate. Country profiles also include country facts such as: population size, gross domestic product, date of independence, languages spoken, etc.

Hauchler, Ingomar, and Paul M. Kennedy. Global Trends: The World Almanac of Development and Peace. Translated by Diet Simon. New York: Continuum, 1994. REF HC59 .15 .G564 1994.

Hauchler and Kennedy assess global economic and political trends since the end of the cold war. The authors include chapters on: economics and finance, military spending and warfare, human and political rights, business and labor, and other topics. Includes over 100 charts and graphs, 70 tables, and 20 maps.

Kurian, George Thomas.,ed. The Illustrated Book of World Rankings. Armonk, New York: M.E. Sharpe, 1997. (REF HA155 .K87 1997)

This source compares and ranks over 190 countries in more than 300 key areas of special interest to those researching Third World poverty. Some areas include: external debt, public expenditures on social welfare, military expenditures and arms imports, housing, health, food, and much more. This is a good source to compare one country to another and to find very specific information (ex: the percentage of homes with inside toilets or electric lights in Bangladesh). Also included in this work are global indexes on human suffering, human development, and the status of women.

The Economist Guide to Economic Indicators. New York: Wiley, 1994. (REF HB 3711 .E43 1994)

This guide, written for students, explains economic and financial terms, and guides the user on how to interpret economic data that serves to measure a country's economy. Some examples of terms include: employment and unemployment, exchange rates, balance of payments, and Gross Domestic Product (GDP) and Gross National Product (GNP).

United Nations. Economic Survey of Latin America and the Caribbean 1997-1998. Santiago, Chile: United Nations, 1998. (REF HC 161 .U48)

The first part of this survey summarizes the regional economic conditions of Latin America for 1997 and the first part of 1998. Part II, profiles twenty countries of Latin America and the English speaking Caribbean. For each country there is a brief overview of the economy and a presentation of its main economic indicators. The previous five editions of this publication are kept in storage, and a statistical annex on diskette is available at the Circulation Desk. Please ask a librarian for assistance.

Altvater, Elmar, Kurt Hubner, Jochen Lorentzen, and Raul Rojas, eds. Translated by Terry Bond. The Poverty of Nations: A Guide to the Debt Crisis From Argentina to Zaire. Atlantic Highlands, New Jersey: Zed Books, 1991. (HJ 8899.A7613, 1991)

The Poverty of Nations examines the origins of the global debt crisis and explains how it keeps, prevents and hinders Third World economic development. The contributors elucidate the international financial system and show the responsibility that U.S., European, and Japanese banks have for this crisis. Case studies from Latin America, Africa, Asia, and Eastern Europe serve to illustrate the affect of mounting debt on the Third World. Also included in this book is a glossary of technical terms written for the non-specialist and a chronology of the debt crisis.

Bandlow, Doug, and Ian Vasquez, eds. Perpetuating Poverty: The World Bank, the IMF, and the Developing World. Washington, D.C: Cato Institute, 1994. (HG 3881.5 .I58 P48 1994)

Perpetuating Poverty examines and critiques multilateral lending institutions like the World Bank and IMF, and concludes that these institutions have been more harmful than helpful in providing development assistance to the Third World. The work's sixteen contributors, argue that the most important factor in the development of poor countries is not direct aid, but unilateral trade liberalization. According to the authors, the best way to help the world's poor is for the West to open its borders to their goods and to dismantle the multilateral aid agencies that have served to perpetuate poverty, hunger, and misery.

Caufield, Catherine. Master's of Illusion: The World Bank and the Poverty of Nations. New York: Henry Holt & Company, 1996. (HC 60 .C345 1996)

Caufield reviews and critiques the World Bank's record in alleviating poverty and stimulating economic growth in less developed countries. She examines the bank's history, leadership, projects, and policies, and argues that the World Bank has fueled the impoverishment of already poor nations. According to Caufield, the World Bank has saddled these countries with debt, done serious damage to their environment, has established partnerships with corrupt and violent governments, caused the displacement of millions of people from their homes, and has generally contributed very little to the stability and social and economic progress of poor and underdeveloped countries.

Marichal, Carlos. A Century of Debt Crisis in Latin America: From Independence to the Great Depression. Princeton: Princeton University Press, 1989. (HJ 8514.5 .M357 1989)

Marichal examines the Latin American debt crisis from a historical perspective, paying close attention to both lending and borrowing countries. He pays particular attention to the international financial crises of 1825, 1873, 1890, and 1929, and explores the relationship it had with the economic crisis in Latin America during this time. Marichal concludes that Latin America's debt crises is mostly the result of trends and actions taken in the developed lending countries, as opposed to the misdeeds and miscalculations of the nations who borrow.

Northcott, Michael. Life After Debt: Christianity and Global Justice. London: SPCK, 1999. (HG 3891.5 .N67 1999)

In Life After Debt, Michael Northcott looks at the how the current practices of international finance and trade systematically create poverty and increase the suffering of those living in the world's poorest countries. Northcott analyzes the social, political, and economic factors of the debt crisis, and challenges the reader to look at the crisis' moral dimension. Each chapter of this book begins with a story of how the debt crisis affects the daily lives of real people. Northcott then proceeds to explore the issues raised by looking at the politics and economics involved in development, as well as offering a theological reflection on the subject matter. Chapters conclude with a list of organizations that can be contacted for further information.

Mitchell, B.R. International Historical Statistics: Africa, Asia, and Oceania, 1750-1988. 2nd ed. New York: Stockton Press, 1995. (REF HA4675 .M55 1995)

International Historical Statistics provides a vast amount of statistical data concerning the economic history of the countries of Africa, Asia, and Oceania. Statistics can be found under the following subjects: population, labour force, agriculture, industry, external trade, transport, communications, finance, prices, education, and national accounts. This source is especially useful for reviewing the economic growth or decline of a country or region in a particular sector of the economy. For example, one can find the amount of savings bank deposits of Nigeria from 1905 to 1984, or the amount of external trade Indonesia has had with its main trading partners from 1840 to 1988.

United Nations. Statistical Yearbook for Asia and the Pacific 1997. Bangkok: Economic and Social Commission for Asia and the Pacific, 1997. (REF HA1665 .S7 1997)

Contains statistics on a wide variety of subjects - external trade, wages, and finance and social statistics to name a few. Also includes "Regional Statistical Indicators" where statistics from the Asia Pacific region are presented in relation to the world.

Wilkie, James W., ed. Statistical Abstract of Latin America. Los Angeles: UCLA Latin American Center Publications, University of California, 1998. (REF HA935 . S79)

The Statistical Abstract of Latin America (SALA), is a one volume work focusing on statistics and data related to Latin America. Part IX of SALA is titled "Financial Flows" and includes a chapter on debt (chapter 29) which has dozens of tables and data going back to the 1970s. The SALA should be your first source when looking for any statistic related to Latin America. The work is broken up into ten parts and titled: I) - Geography, Land, & Environment, II) Transportation & Communication, III) Population, Health, & Education, IV) Politics, Religion, & Military, V) Working Conditions & Migration, VI) Illegal & Legal Industry, VII) Mining, Energy, Sea, & Land Use, VIII) Foreign Trade, IX) Financial Flows, X) National Accounts, Government Policy & Finance, & Prices.

African Faith and Justice Network
www.acad.cua.edu/afjn

The African Faith and Justice Network is a Washington, D.C. based organization working to promote social justice on the African continent. Their web site is an excellent source of information on political, economic, and human rights policies related to Africa. It contains legislative information, country specific news updates, and has a section devoted to global economic justice issues. An analysis of topics related to debt, trade and investment can be found here, as well as the impact of unregulated global capitalism on the African continent.

Catholic Relief Services
http://www.catholicrelief.org/what/advocacy/debt.cfm

The web site of Catholic Relief Services offers an easy to follow outline that provides a summary of the international debt crisis, its origins, and analysis of efforts taken thus far to assist debt ridden nations. Includes a helpful glossary of terms related to debt and development.

CIDSE/CARITAS
http://www.cidse.be/en/index.html

International Cooperation for Development & Solidarity (CIDSE), an alliance of 16 Catholic development organizations, along with Caritas Internationalis, an international federation of Catholic organizations working for social justice, maintain a website on their many activities which includes debt reduction advocacy. Their site provides access to the organization's position papers, press releases, and newsletter.

50 Years is Enough: U.S. Network for Global Economic Justice
www50years.org

50 Years is Enough is a grassroots coalition of 205 organizations dedicated to global economic justice, and seeking a "profound transformation of the World Bank and the International Monetary Fund (IMF)." Their web site contains a summary of the group's platform, analysis on how debt and World Bank and IMF policies affect the world, media coverage and press releases on the organization's activities, and articles from their newsletter "Economic Justice News." Also included is current news regarding debt related political initiatives, and information about upcoming conferences.

International Monetary Fund
www.imf.org

The web site of the International Monetary Fund (IMF) is a good place to learn more about the role and responsibilities of the IMF, and to keep up-to-date on their activities. News releases, speeches, their annual report, and articles in their quarterly publication Finance & Development, can be accessed here. Statistics on the external debt of developing countries are available here and is updated quarterly.

Jesuits for Debt Relief & Development (JDRAD)
www.jesuit.ie/jdrad/index.html

JDRAD is an international network of Jesuits providing an analysis of issues related to debt and development. Important features of their site includes an overview of international debt, and an overview of the economic and social situations in Africa, Asia, and Latin America. Information can also be found on how European countries, as creditors, are dealing with indebted nations. Other features of JDRAD's web site include a table listing the debt owed to the G8 countries, JDRAD's response to the IMF/World Bank's HIPC (Heavily Indebted Poor Countries) Initiative, position papers of the organization, and an explanation of structural adjustment programmes. A letter titled "Jesuit Appeal to G8 Countries to Cancel Unpayable Third World Debt", signed by the head of the Jesuit order, Father General Peter Hans Kolvenbach, SJ, and fifty five Provincials and Regional Superiors, can also be found here.

Jubilee 2000/USA
www.j2000usa.org

Jubilee 2000/USA is a worldwide organizing effort aimed at getting first world countries to cancel the international debt of impoverished countries by the year 2000. The web site explains the work of participating organizations, provides analysis of debt and debt relief, makes available the organization's press releases, and has links to other worlwide organizing campaigns. Has a very helpful "Frequently Asked Questions" section that addresses foreign debt, it consequences, and the reasons why so many countries are burdened by it.

Trade and Development Centre
www.itd.org

A joint venture of the World Bank and the World Trade Organization, the Trade and Development Centre's web site provides information on social and economic development, and the role this plays in trade-related issues. Site features include a Frequently Asked Questions section on mulitlateral trading, online essays on topics related to the World Trade Organization and developing countries, and links to regional organizations that address trade and development (ex: Central American Common Market, Southern African Development Community (SADC), etc.

United States Catholic Conference
http://www.nccbuscc.org/sdwp/international/debtindex.htm

The United States Catholic Conference's (USCC) Department of Social Development & World Peace maintains a web site on international debt. It includes updated legislative information, a list of the "Heavily Indebted Poor Countries" (based on IMF and World Bank guidelines), and a number of statements by the USCC - "A Jubilee Call for Debt Forgiveness," "Putting Life Before Debt," Statement on the Cologne Initiative from the G-8 Summit".

World Bank
www.worldbank.org

The World Bank's web site provides information on the Bank's operations and projects throughout the world, and a great deal of social and economic data for individual countries and geographic regions. Country profiles are available, outlining a county's development progress, and the World Bank's involvement in and analysis of that country's particular needs. One can also find information on a number of development topics such as poverty reduction, urban and rural development, country assistance strategies, private sector development, etc. The site features a "Development Forum", an electronic venue for discussing topics related to development issues, and Development News, the Bank's daily news magazine offering a summary of the Bank's activities and articles on country specific development.

Electronic Databases

Web Sites

Statistics

Selected Titles (Circulating Collection)

Selected Titles (Reference Collection)