Olivier de Schutter, Special Rapporteur on Extreme Poverty and Human Rightsand Attiya Waris, Independent expert on external debt and human rights, have welcomed the proposed one New York Taxpayer and International Debt Crisis Prevention Actwhat is currently being discussed.
They called on the legislature to do so accept the billwhich forces private creditors to participate in international debt relief efforts on terms similar to those of public lenders.
Fair to all
New York State is home to New York City, the financial capital of the world.
Some 60 percent of developing country debt is held by private creditors, and New York law regulates 52 percent of this global debt, according to the experts.
“When taxpayers contribute to public debt relief, Private creditors should be obliged to participate on the same terms,” They said. “Debt relief must be effective and fair for all, and the costs must also be borne by private creditors.”
The proposed legislation means distressed low- and middle-income countries would be able to protect their citizens’ economic, social and cultural rights instead of paying off “unsustainable” debt burdens.
Shift budget priorities
In 2021, these countries spent an average of 27.5 percent of their budget on interest and debt payments more than the amount spent on education, health and social protection combined.
“This bill is a golden opportunity This will allow debt-struggling countries to shift their fiscal priorities and by creating better living conditions, reduce risks and create better opportunities for investors in those countries,” they said.
The experts emphasized that the COVID-19 Pandemic, energy crisis, rising food prices and inflation have led to this an increase in unsustainable debt for many countries, with particular impact on developing countries.
“Many poor people can hardly afford food and the basic necessities for their health. States must be able to do this, especially in times of crisis to ensure social protection and food security for all people in their country,” they added.
They emphasized that “everyone has an interest in countries being able to invest in social protection, healthcare, housing, education and food security, rather than investing in them.” more and more of their limited budgets to pay off debts.”
About UN experts
Special rapporteurs and independent experts receive their mandates from the United Nations Human Rights Councilbased in Geneva.
They serve in their individual capacity and are independent of any government or organization.
They are not UN employees and are not paid for their work.
