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expenditures on health, education and other social services. On average, such spending is
about five times the amount of debt-service payments.”
27.
Nevertheless, it is also evident that conditionalities that have accompanied debt
relief have exacted substantial social costs, including high unemployment and increasing
poverty and inequality and have had an adverse effect on the realization of a number of
basic human rights. For example, Zambia completed the HIPC Initiative in 2005 receiving a
total of $6.6 billion in debt relief through the HIPC Initiative and MDRI. Although the
country has used the savings from debt relief to eliminate school fees and user fees in rural
health centres and to fund infrastructure projects, it remains poor with approximately 64 per
cent of the population living on less than $1 a day. The country generates three-quarters of
its foreign exchange earnings from copper mining. However, a privatization deal that
favoured foreign companies has reduced the benefits that the country has received from this
vital sector.
28.
The impact of debt relief on development and on progress towards the Millennium
Development Goals is even less certain. In 2011, the World Bank and IMF, while reporting
that HIPCs had increased their poverty-reducing expenditure, noted that these countries
“have made uneven, and in some cases, limited progress towards achieving the Millennium
Development Goals.” Only a quarter of completion point HIPCs were on track to achieving
Goal 1 (to eradicate extreme poverty and hunger), with progress toward Goal 5 (to improve
maternal health) less certain. Moreover, only a few HIPCs were on track to attain Goal 8 (to
build a global partnership for development).
29.
Similarly, a recent World Health Organization and UNICEF report, covering 68
countries where more than 95 per cent of all maternal and child deaths occur, notes the
limited progress towards the Millennium Development Goals.29 The report indicates that 49
of the countries surveyed were off track for achieving Goal 4 (to reduce child mortality)
and Goal 5 (to improve maternal health). It is worth noting that 33 of the countries surveyed
are HIPCs, including 27 post-completion point HIPCs.
C.
Human rights
30.
According to some studies, a key benefit of savings from debt relief has been an
expansion in public education and access to health care. In several countries, debt relief
savings allowed governments to abolish user fees (initially introduced as a condition of
IMF and World Bank adjustment lending in the 1980s and 1990s). According to World
Bank estimates, in 2011, health expenditures in the 32 post-completion HIPCs rose from
5.2 per cent of GDP in the period 1995 to 2000 to 6.6 per cent in the period 2006-2009. In
the field of public education, user fees have been reduced, with primary school enrolment
29
10
also Christian Barry, Barry Herman and Lydia Tomitova (eds.) for Carnegie Council, Dealing Fairly
with Developing Country Debt (Malden, MA, Blackwell, 2007), p. 2; Jubilee Debt Campaign, “Debt
and Public Services,” Briefing note (October 2007); Alcino Ferreira, Câmara Neto and Matías
Vernengo, “Lula’s Social Policies: New Wine in Old Bottles?”, Working Paper Series 2006-07,
Department of Economics, University of Utah (2006), p. 11; The New Economics Foundation, Debt
relief as if justice mattered: A framework for a comprehensive approach to debt relief that works
(2008) p. 11.
WHO and UNICEF, Countdown to 2015, Decade report (2000-2010): Taking stock of maternal,
newborn and child survival (2010), p. 1.
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