The Australian Government announced in its budget that, in response to the financial crisis, it will (in line with other G20 countries) increase its contribution of funds to the IMF, Asian Development Bank and World Bank to enable a "significant expansion in lending" to poor countries.
Over the last 40 years, lending for 'development' has at best been ineffective, and at worst, contributed to the impoverishment of people in the two-thirds world. Developing countries have been in a financial crisis - also known as the 'debt crisis' - for over three decades.
Unlike the big banks and insurance companies, these countries aren't being offered a bail out. They are being offered new debts. And this, to help their balance of payments and ensure they can continue servicing their old ones.
It's time to put an end to the notion that traditional lending assists the poor. What developing countries need is cancellation of their toxic debts, fair terms for international trade, and a global economy and finance system that allows them the opportunity to sustainably develop.
Read Op-Ed by Ross Buckley "When cashed-up IMF offers to help, steer well clear"
See Jubilee's submissions to Australian Government on IMF Macroeconomic Reform and New Debt Architecture
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