Oxfam urges foreign ministers to cancel Haiti's debt

Washington, DC – Foreign ministers meeting in Montreal today should agree to cancel Haiti’s $890 million international debt in the wake of the devastating earthquake, international relief and development organization Oxfam said.

Debt cancellation is one of Oxfam’s five priorities for Haitian reconstruction. The other elements are:

• support for Haitian farmers and small business;
  
• ensure poor areas benefit from cash grants to speed economic recovery;
  
• support for civil society and the Haitian government including ‘ministries in a box;’ and
  
• build back better, e.g. earthquake proof buildings and alternative fuel sources to reduce deforestation.
  

According to Oxfam, Haitian recovery risks being undermined by the country’s debt burden and by a pre-existing food crisis that has left Haiti dependent on imports for 40 percent of its food. With the planting season due to begin in two weeks, urgent steps are needed to boost food production and stave off further hardship for up to three million Haitians affected by the disaster.

“Expecting Haiti to repay billions of dollars as the country struggles to overcome one of the worst natural disasters in recent memory would be both cruel and unnecessary,” said Jeremy Hobbs, executive director of Oxfam International.

“Immediate cancellation of foreign debt must be accompanied by urgent action to support farmers and prevent a man-made food crisis that would exacerbate the hardship faced by the people of Haiti.

“This should take place alongside steps to speed the recovery of local markets such as cash grants to pay earthquake survivors to clear rubble and undertake other jobs linked to reconstruction.”

Oxfam is also calling on donors to deliver on the IMF’s pledge to turn a $100 million emergency loan to Haiti into a grant. The organization is also asking donors to learn from the lessons of previous disasters and ensure funding is available to providence incomes for local people.

Oxfam urged donors, the United Nations, and Haitian government to work together to ensure that poor areas that were amongst the hardest hit by the earthquake benefit fully from reconstruction efforts.

“Haiti is a divided and highly unequal society so there is a real risk that, in the weeks and months after the earthquake, politically influential and richer Haitians will secure reconstruction resources at the expense of Port-au-Prince’s poorest,” said Hobbs.

Donors should step-up efforts to help the Haitian government and civil society recover from the disaster. This could include providing ‘ministries in a box’ – large tents containing the basic tools, such as telephones, desks and chairs, which are needed for a government department to operate.

Oxfam called on the 16 foreign ministers attending the ‘Friends of Haiti’ Montreal meeting to clearly define the role of the international military and make clear that forces will operate under the overall leadership of the UN and Haitian government. Two weeks after the earthquake, it remains unclear how the United States and other major donors will coordinate their assistance.

“The leadership of the response must remain clearly in the hands of the United Nations and the Government of Haiti,” said Hobbs. “All international military must actively and visibly coordinate efforts with the UN and Haitian Government on every level.”

Oxfam asked the UN to step up night security patrols to protect the civilian population and for improved coordination on security measures between the Haitian government and international military forces. It warned that people in Port-au-Prince are increasingly concerned for their own safety and security. People sleeping on the streets have told Oxfam that they are being attacked and their meagre belongings stolen. At least half a million people are living outdoors in improvised camps in the capital.

\ENDS