Thirty-two countries have had $120 billion of debt cancelled over the last decade in response to the global Jubilee campaign. Government external debt payments in these countries have fallen from 20 per cent of government revenue in 1998 to less than 5% in 2010. In these countries, the number of children enrolled in primary school has increased from 63% in 2000 to 83% in 2010.
Across the 32 low and lower middle income countries where data is available, private sector external debt payments have increased from 4% of export earnings in 2000 to 10% in 2010. In contrast, government external debt payments for these countries have fallen from 20% of export revenues in 1998 to 5% in 2010. In these countries, the number of children enrolled in primary school has increased from 63% in 2000 to 83% in 2010.
Thirty years of debt crisis have devastated livelihoods across the world. Although debt cancellation released some countries from one debt trap, the developed country Debt Crisis has led to government debts in impoverished countries the increase in unregulated and opaque private lending could increase inequality and the risk of crisis. The Developed Countries Debt Crisis shows yet again why reckless lending and borrowing need to be governed and controlled.