1. 26/09/08Jubilee USA Network Study Session 4 Avoiding Illegitimate Debt and Transforming the International and National Financial Architecture: Towards Principled / Responsible / Alternative / Financing

2. 26/09/08Jubilee USA Network 1. Starting the Debate: Responsible or Alternative Finance? Groups have a range of perspectives on this debate Some argue: Lending is a reality for the forseeable future; we need to put strong constraints/demands on lenders. It is inconsistent to argue for cancellation or repudiation of illegitimate debt accrued over the past 25 years, while doing nothing to avoid the accumulation of new illegitimate debts in the next 25 years. Jubilee Zambia: “We support Responsible Financing in which the need for an international framework governing the circumstances and procedures for loan contraction, management or on-sale of debts is administered by a framework of good principles”

3. 26/09/08Jubilee USA Network 1. Starting the Debate: Perspectives on Responsible v. Alternative Finance Other groups argue that we should not engage current lenders,and instead focus on creating wholly new sources of alternative finance. Concern that making demands on World Bank, IMF, other lenders will legitimize their role; the demands will be too technical rather than the transformation that is needed. “We think that the World Bank, the IMF, and the WTO must disappear and be replaced by regional financial structures truly controlled by the people.” – PAPDA Haiti But this discourse is no necessarily conflicting: work towards both responsible and alternative financing is critical.

4. 26/09/08Jubilee USA Network 2. Responsible lending/ borrowing: Increasing importance for civil society  Post-HIPC Countries in Africa. Governments are continuing to borrow due to lack of other options. Strong new work from civil society to engage parliaments, civil society in loan contraction process, “responsible borrowing”

5. 26/09/08Jubilee USA Network 2. Responsible lending/ borrowing: Increasing importance for civil society Eurodad has proposed new Charter for Responsible Lending which urges strong constraints on lenders to assure new loans/finance do not undermine human rights nor lead to the creation of new illegitimate debt Debt audits are not only looking at old debts but are also expected to recommend changes on how lending/borrowing should be done in the future

6. 26/09/08Jubilee USA Network 3. “Responsible Lending”: On the Official Agenda Growing official discourse on responsible lending largely limited to concerns to avoid re-accumulation of debt post –HIPC. Issue of so-called “new lenders” – emerging role of China, India, Venezuela, etc. Discussion on “responsible lending” underway within G-8, G-20, OECD, World Bank, UN Financing for Development, etc.

7. 26/09/08Jubilee USA Network 3. “Responsible Lending”: On the Official Agenda Civil society has different view of “responsible lending” – unlike official view which focuses mainly on quantity of future lending, civil society demands better quality of new loans to avoid creation of new illegitimate debt in the future Some groups see official openings as an opportunity (that we are currently largely missing) to put forward our strong demands on responsible finance and influence official debate. Others worried engagement will legitimize these institutions.

8. 26/09/08Jubilee USA Network 4. Alternative Financing The Bank of the South is a possible other area to address the question of future financing on more equitable terms. Civil society has developed frameworks and demands surrounding the creation of the South Bank. These demands are in some ways similar to demand such as the Eurodad Charter. Possible to develop global unities around responsible / alternative financing?

9. 26/09/08Jubilee USA Network

10. 26/09/08Jubilee USA Network Study Session 4: Break out Groups Group 1 – “Responsible borrowing” / Loan contraction process in South countries (Facilitator: Lidy) 5 - Location: tv room Group 2 - Responsible Finance – mainly addressed to lenders (Facilitator: Neil / Rapporteur: Alex) 10 or so - Location: TV room Group 3 – Alternative Finance structures – developed in South (Facilitator: Rocio / Rapporteur: Fabrina) 20 Location: THIS ROOM Key question for groups to discuss: 1. In the area you are looking at, what are key principles civil society can agree are needed to avoid the creation of illegitimate debt in the future? 2. How can we engage in a way that does not legitimize governments/institutions that we think are illegitimate or imperfect? 3. Do we think all 3 approaches (rep. borrowing/ resp. finance/ alt. finance) can be made coherent in some way?