Be climate smart – Cancel the debt, Mr Nagel!
70 years ago debt cancellation for Germany made the so-called economic “miracle“ possible. Today, we need a debt cancellation for the Global South to enable a climate miracle with advantages for everyone. Here is why:
History teaches how intelligent debt policy works: 27/02/2023 marks the 70th anniversary of the debt cancellation for the Federal Republic of Germany. The London Debt Agreement had contributed decisively to the reconstruction of the war-torn country.
As a result of the London Debt Agreement5 of February 27, 1953, the young Federal Republic was closely integrated into the Western defense alliance in the age of bloc confrontation. The cancellation of the debt by the Allies was therefore not out of charity, but out of clear strategic self-interest.
The anniversary shows that debt cancellation is possible and can help solve global problems. Currently, we are racing full speed towards the climate catastrophe that will radically change our societies. Countries like Germany can make a decisive contribution to necessary changes in an active and positive manner!
What does this have to do with the climate Crisis?
The debt of the Global South forces countries like Argentina or Mozambique to exploit new oil and gas fields despite the escalating climate crisis.
Mozambique is one of the most indebted countries in Africa. “Without the export of natural gas, which is highly problematic in terms of climate policy, Mozambique is practically bankrupt already.”
Instead of promoting the transition to renewable energy, countries like Germany and Italy are pushing to build fossil fuel infrastructure.
Argentina is drowning in debt. It is grasping at any straw to reduce its debt burden. The deals with the IMF are not really sustainable, neither for the economy nor for the environment.
One particularly toxic project is the Vaca Muerta oil field in Argentina. Fracking is the main method used there. The local population is left out in the cold.
We need change.
Together with a broad alliance of different climate justice groups (under the leadership of “Debt For Climate”), the KoalaKollektiv therefore calls on Bundesbank president Dr. Joachim Nagel to act.
Nagel, as Germany’s representative in the International Monetary Fund (IMF), has the power to advocate for the cancellation of the Global South’s debt.
This is an overdue step that would not only have a positive impact on the countries most affected by the climate crisis, but would be profitable for all!
More information: Debt for Climate