A/HRC/10/65
page 6
Foreign debt and poverty
20. The independent expert on the effects of foreign debt and other related international
financial obligations of States on the full enjoyment of human rights, particularly economic,
social and cultural rights, Cephas Lumina, stated that, from a human rights perspective,
excessive debt burdens, high dependency on foreign assistance and extreme poverty together
pose a major challenge to the realization of human rights in many countries by undermining the
human rights obligations of States and the enjoyment of human rights by the poor in indebted
countries. Studies indicate that some countries are spending much more each year on servicing
debt than on human rights-related public services, such as education and health, combined.
21. The independent expert emphasized that the reduction of foreign debt through debt relief is
considered one of the principal ways to contribute to poverty reduction and debt sustainability.
However, he drew attention to a number of key concerns in debt relief initiatives, particularly
with regard to the conditions attached to debt relief measures. Debt relief alone cannot facilitate
development and poverty eradication in low-income countries; it must be complemented by
additional development assistance, particularly in the form of concessional loans or grants. In
this respect, he pointed out the fact that official development assistance (ODA) has been
declining to levels well below the 0.7 per cent target reaffirmed in the Monterrey Consensus of
the International Conference on Financing for Development.
22. The independent expert concluded by underlining the importance: (a) of consistency
among trade, aid and debt policies, and that debt relief initiatives be accompanied by
concessional aid; (b) that debt relief for poverty reduction be specific to country situations and
not undermine the enjoyment of human rights by the poor in low-income countries; and (c) of
the promotion of transparency and the participation of civil society and the poor in debt relief
programmes.
23. Following the independent expert’s presentation, the Chairperson-Rapporteur announced
that the speaker to follow, the Secretary-General of the Ministry of Planning and International
Cooperation of Jordan, Nasser Shraideh, was unable to attend the Social Forum and that his
statement would be read out by a representative of the Permanent Mission of Jordan to the
United Nations Office in Geneva. Mr. Shraideh’s statement focused on the direct and indirect
impact of external debt on poverty. He explained that a large foreign debt can directly reduce
Government resources available for the poor. High indebtedness can also indirectly increase
poverty because it undermines economic growth by increasing uncertainty and reducing
expenditure on economic infrastructure. It could also scare away foreign direct investment,
which is important for economic growth. His statement also provided information, facts and
figures on the efforts of the Government of Jordan to reduce its foreign debt.
The role and responsibility of the State in poverty eradication
24. The Permanent Representative of the People’s Republic of China to the United Nations
Office in Geneva, Li Baodong, spoke about the role and responsibility of the State in poverty
eradication. Observing that poverty is caused by social and historic factors, he emphasized that
promoting human rights was an essential component for eradicating poverty.
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