Many scholars have claimed that the lifestyles we have gotten used to in the United States perpetuate the ongoing poverty in other countries. Some say that the U.S. (5% of the world's population) takes up 25% of world's resources, which forces poorer countries to make do with less. Others disagree -- claiming that the world has limitless resources due to technology and ingenuity. Economists go back and forth on this debate, each side citing different numbers and various graphs to prove their points.
An extreme example of exploitation, however is when companies buy international debt, for pennies on the dollar. If the U.S. cancels the debt, these companies sue the developing countries for the whole debt plus interest. These funds are called "vulture funds", and rightly so. They allow companies to sit and wait for the perfect time to attack, when countries are at their most vulnerable state.
Many countries whose debt is just canceled are now made to pay these companies the money that could have gone to help reduce the AIDS epidemic, build new schools, or anything else that would promote well-being and economic recovery.
This is so awful, that Representative Maxine Waters recently introduced a bill to outlaw such funds.
"The act would protect impoverished countries from the predatory practices of vulture funds and allow these countries to use their limited resources to meet the needs of their people," said Waters. "I am proud of my work in Congress to cancel poor countries' debts. We cannot allow vulture funds to erode the progress that has enabled many of the world's most impoverished nations to reduce poverty."
Over the last ten years, twenty countries have received debt cancellation -- one of the best things countries like the U.S. can do to reduce poverty in areas all around the world.
Please take five minutes and ask your representative to cosponsor the Stop VULTURES Funds Act today! If you click on the link, Africa Action walks you through the steps.
-Karyn Wingard-Manuel
P.S. Thanks to Rod Downing who alerted the Sustainable Good blog of this action alert!
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