A devastating earthquake in Haiti leaves more than 100,000 people dead; it happens in the midst of a financial crisis that has shaken the global economy to the core and devastated the lives of millions more.

More than ten years ago a small group, many motivated by their determination to see biblical principles applied to global issues, launched Jubilee 2000, calling for the cancellation of unpayable international debt.

The Haiti story highlights the ongoing debt crisis – and the need for continued campaigning – all too clearly.

There was great progress in the deal done by the G8 in the UK in 2005, the year of Make Poverty History. But under the arcane and unjust rules of the international financial institutions, Haiti, despite 76 per cent of its population living below the poverty line, did not qualify for debt relief.

Jubilee Debt Campaign reported in June 2009 that as a result, Haiti was paying some $60 to $80 million a year in debt service. This was the same scandal that had motivated those first campaigners: resources desperately needed within a country for the benefit of its people flowing out of the country to repay debt.

So for years, campaigners repeatedly called for action to cancel Haiti’s debt. And finally, in July 2009, their calls were heeded. But it was a very limited success: 60% of its debt was cancelled.

It meant that this year Haiti was still expected to pay out around $10million in debt repayment to international financial institutions. It meant that Haiti still owes as much debt now as had been cancelled: $1.2 billion. In the next 9 years Haiti is due to repay over $500 million to all of Haiti's creditors combined.

And how did the International Monetary Funds react to the earthquake? By offering a new loan of $102 million.

At that moment of despair came the evidence of another reality. The Jubilee debt campaign changed the face of world politics. Debt cancellation is now automatically on the agenda (and released millions of dollars that have been applied to the reduction of global poverty).

So here is what the G7 finance ministers said this past weekend (6 February): “We agreed that Haiti’s recovery should not be burdened by debt. We are committed in the G7 to the forgiveness of debt. In fact, all bilateral debt has been forgiven by G7 countries vis-à-vis Haiti. The debt to multilateral institutions should be forgiven and we’ll work with these institutions and other partners to make this happen as soon as possible.”

So there is still a debt crisis. The debt campaign means that cancellation is on the agenda. But campaigners need to keep up the pressure to ensure that the debt really is cancelled – and that it is cancelled in a way that genuinely releases Haiti from the economic control of the rich and powerful nations and corporations who all too often see disasters as opportunities for further exploitation.

Stephen Rand

Co Chair

Jubilee Debt Campaign

9 February 2010