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Report: Is Indonesia’s debt to Norway illegitimate?

This report deals with Indonesian environmental and development projects financed by Norwegian development funds and export credits under dictator Suharto's reign in the 90s. The report reveals ambitious plans, failed projects, Norwegian business interests and Indonesian illegitimate debt. It also underlines the importance of immediately launching a complete review of all outstanding loans to Norway.
 

SLUG - The Norwegian Coalition for Debt Cancellation

SLUG is an umbrella organisation with more than 50 affiliated civil society organisations and political youth parties, some more actively engaged than others. SLUG was established in 1994. Since then the organisation has evolved and steadily been built up by a network of volunteers coming together in working groups. From 1998 to 2001 SLUG coordinated the Jubilee 2000 campaign in Norway. The coordination of activities on the national level is run by the board, mainly consisting of representatives from local groups and affiliated organisations.

The following demands and principles make out the basis of SLUGs work, and are supported by all SLUGs member organisastions:

SLUG demands:
1. Immediate cancellation of all illegitimate debt, including all the debt that can not be paid without burdening the worlds poorest.

2. That debt cancellation must not be conditioned by the carrying out of structural adjustment programmes which undermine democratic processes.

3. That guidelines for responsible financing are placed upon all types of lending.

The principles guiding these demands are as follows:

  • Debt cancellation must not reduce the aid budget.
  • The main goal of debt cancellation is to eradicate poverty and, to enable positive, socially inclusive economic development of poor communities. There has to be openness and transparency around public expenditure made possible from debt cancellation.
  • Debt cancellation must be seen in a broader context of structural and institutional change on a global level, levelling out the discrepancy of power between countries in the north and the south and preventing new debt crises.
  • There are toparies in every loan agreement. Disputes on repayment must be solved by an independent third party. 

Main Working Areas : Policy Work and Campaigning
SLUG’s work consists of campaigning and political lobbying on the subject of debt cancellation. Inspired by campaigns in the South since 2001 our main focus has been on illegitimate debt defining and challenging to recognise the concept. Since 1994 our key demand have been the cancellation of Norway’s illegitimate debt; the debt originating from the Norwegian Shipping Export Campaign 1976-80. A great victory was reached in 2006 as the Norwegian government decided to cancel these debts (see report and press release) and admitted co-responsibility for failed development policy in the past.

The government’s groundbreaking statement of creditor’s co-responsibility and the decision of cancelling the debt unilaterally and without any conditions has had a significant impact on SLUG’s policy work. The Norwegian government is morally obliged to apply the same principles of creditor’s co-responsibility within multilateral institutions. An important task for SLUG is therefore to push the Norwegian government to:

  • Clarify the concept of and cancel illegitimate debts
  • Establish criteria for creditor responsibility and responsible lending
  • Say no to privatisation and liberalisation as conditions for debt relief and aid
  • Establish an international debt workout mechanism

The main target groups of SLUG’s campaigning are the affiliated organisations, students, scholars and politicians. SLUG wants to contribute to create a knowledgeable public opinion to ensure a focus on the role of global finance structures as contributors to poverty and global inequality.

 

Learn more about why Norway took creditor responsibility here.

 
 

Resources in English

  Is Indonesia's debt to Norway illegitimate?

This report deals with Indonesian environmental and development projects financed by Norwegian development funds and export credits under dictator Suharto's reign in the 90s. The report reveals ambitious plans, failed projects, Norwegian business interests and Indonesian illegitimate debt. It also clarifies the importance of immediately launching a complete review of all outstanding loans to Norway.
 

Borrow My Pension - The Norwegian Government Pension Fund-Global: A responsible lender?

One fourth of the En fjerdedel av Statens Pensjonsfond - Utland er investert i statsobligasjoner, som er en type lån. Denne delen av Pensjonsfondet er ikke underlagt etiske retningslinjer. Norske oljepenger kan dermed brukes til å støtte illegitime regimer eller formål. Med denne rapporten ønsker SLUG å gi et bidrag til debatten om etikk for statsobligasjoner, og kommer med konkrete forslag til hvordan Norge som eier av SPU bør gå frem.

 

Unfinished business: ten years of dropping the debt

Jubilee Debt Campaign's tenth anniversary report finds that at least another $400 billion of debt cancellation is needed if the world’s poorest countries are to combat the challenge of global poverty. The report was released on the tenth anniversary of the 70,000-strong human chain in Birmingham on 16 May 1998. It looks back at the seminal events of May 1998 and asks: just how far have we come?


China in Africa - lending, policy space and governance 

Kinas tilstedeværelse i Afrika er raskt voksende. SLUG har, sammen med Fellesrådet for Afrika, gitt ut en rapport om Kinas rolle som långiver på kontinentet. 

 

Why Norway took Creditor Responsibility – the case of the Ship Export campaign (2007)

2. October 2006 Norway cancelled debt on grounds of creditor co-responsibility. What was the background for the move and on what grounds did Norway cancel this debt? Can the move set a precedent for other countries?

 
 

The Norwegian hearing on third world debt

In November 2002, the first debt tribunal ever held in the North was arranged in Norway. The Norwegian Peoples Tribunal on Third World Debt wanted to challenge the Norwegian government on its responsibility for the third world debt crisis. The idea of holding a tribunal was inspired by similar tribunals in the South. In this report you find the background for the hearings, the proceedings, the case and the panel’s/ jury’s conclusion. We also ask what should be the next step.
 
 
 
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