Causes of the unpayable debt
In the 1970s and 1980s, after years of unrestrained and irresponsible creation of debts by both lending and borrowing elites, three things occurred which sent the debt of Third World countries spiraling. The richer countries increased interest rates massively, so debt repayments rocketed up. The prices of primary products fell, by 30% on average, so Third World incomes nose-dived. Oil prices quadrupled, driving up costs. All of these events were beyond the control of Third World countries.
Effects
Africa's poorest countries spend four times more on debt repayments than on health.
Eight million children die every year from pneumonia, diarrhea and measles, all of which can be prevented or treated.
Africa now owes more than three times what it initially borrowed.
Countries not able to make their debt payments must turn to the International Monetary Fund (IMF), which offers further loans with stiff conditions, known as Structural Adjustment Programs (SAPs).
SAPs require governments to privatize industries, devalue the currency and cut spending on health, education and jobs.
Cuts to health and social services fall most heavily upon women and female children.
Rainforests are being destroyed, fish stocks are being exhausted and land is being stripped for mines to increase exports to pay debts.
Consider that
International loans are often negotiated in secret between local elites and powerful creditors, like the IMF, the World Bank, richer countries' governments and private banks. Yet the burden of repayment falls on ordinary people not party to the agreements.
Loans have often been used to buy weapons, line the pockets of the elite, or finance environmentally destructive "prestige projects".
Loans are made for political reasons. For example, millions were lent to Zaire's former dictator Mobutu to gain political leverage, leaving the people of Zaire with a crushing debt load.
There is no international bankruptcy law. Countries can only fall deeper and deeper into the abyss of debt and economic degradation.
Canceling the debt is a first necessary step towards building a global economic system in which the current situation of heavily indebted countries would never be replicated.