East Timor ACTION Network ALERT
The World's Newest Country Must Start Debt-Free!
East Timor's May 20 Independence Threatened by Donors' Economic Chains
Call this week to Support Real, People-Centered Development
see also International Action Alert
What You Can Do
Background
Sample Letters
On May 20, 2003, East Timor celebrates its first Independence Day. But the
jubilation may be short-lived. A lack of funds could stand in the way of
East Timor's commitment to use its revenues for healthcare and education
for its people rather than to service a debt to wealthy states and
financial institutions. The East Timorese government has joined with civil
society in making poverty alleviation its highest priority. Top officials
have publicly affirmed their determination to avoid the debt trap faced by
so many countries in the Global South, and a "no loans" policy
has been put into place.
The nascent government faces an estimated US $154-$184 million
shortfall in its already lean budget for the first three years of
independence. Compared to the US military budget, this sum is peanuts; the
U.S. pays more for one F-22 fighter plane. But for East Timor, it could
represent the difference between "life and debt." We have a
unique chance to take preemptive action -- to prevent the stranglehold of
structural adjustment, loans, and the vicious cycle of poverty from
putting its deadly grip on the new country.
On May 14 and 15, donor countries and international financial
institutions (IFIs) will hold a pledging conference to cover the financing
gap in Dili, East Timor's capital. With concerted grassroots pressure from
within the U.S. and other countries, we can make sure that grants with no
strings attached cover the gap in its entirety. Otherwise, East Timor may
have no choice but to resort to loans with terms dictated by the IMF,
World Bank, and Asian Development Bank. We must not let this happen.
WHAT YOU CAN DO
Call, fax, and email your Senators, Representative, and Deputy
Secretary of State Richard Armitage (see sample letter below).
Tell your Senators and Representative
§ The U.S. government should build on its recent support for East
Timor by helping it meet its short-term budget gap. With their country
devastated by Indonesian occupation, the East Timorese are among the
poorest on the planet. They should not be forced to choose between
feeding the hungry and servicing a debt.
§ East Timor represents the first chance for both the administration
and Congress to put statements about global eradication of poverty into
action by taking preemptive measures.
§ The U.S. government should make the most generous donation
possible at the May pledging conference in East Timor, funding at least
25% of the expected financing gap in East Timor's recurrent and
development budgets. Grants must not be tied to crippling
conditions.
§ The Senator/Representative should use every opportunity to ensure
this by (1) voicing this most important concern to Deputy Secretary of
State Richard Armitage by phone or letter; and (2) working with other
Members of Congress to attain the necessary funds through appropriations
and/or State Department monies.
Phone calls and faxes are generally more effective than emails. The
congressional switchboard number is 202-224-3121, or check http://www.congress.org
on the Internet for fax or e-mail information.
Tell Deputy Secretary of State Armitage
§ The U.S. government should build on its recent support for East
Timor by helping it meet its short-term budget gap. With their country
devastated by Indonesian occupation, the East Timorese are among the
poorest on the planet. They should not be forced to choose between
feeding the hungry and servicing a debt.
§ The administration has recently emphasized the importance of
poverty eradication and the futility of the world's poorest countries
drowning in debt. East Timor represents the first chance for the
administration to put their words into action and take preemptive
measures.
§ The U.S. government should pledge to finance at least 25% of the
funds needed to cover East Timor's expected financing gap at the May
donor conference in East Timor. The pledge must come without the
crippling conditions
§ Senior administration officials must work with colleagues other
governments to ensure the entire financing gap is funded with
unconditioned grants.
Contact for Armitage: tel: 202-647-9641, fax: 202-647-6047
Time is not on our side. We only have a few weeks left to exert
public pressure. Please make these calls today!
Please let us know the results of your contacts. Thank you! Your
efforts do make a difference!
BACKGROUND
The courageous people of East Timor paid a terrible price for their
freedom. Many powerful nations actively supported the Indonesian military
occupation that killed one-third of the population between 1974 and 1999,
"investing" in East Timor through weapons sales to Indonesia.
The U.S. government, the largest supporter of the Indonesian military,
supplied the military with 90% of the weapons used during the 1975
invasion of East Timor followed by well over a billion dollars worth of
military assistance and weapons sales throughout the occupation. In 1999,
Indonesian security forces and their militia proxies violently retaliated
after the East Timorese opted for independence in a UN-sponsored
referendum. Troops destroyed 75% of the already poor country's
infrastructure, displaced two-thirds of the population, raped hundreds of
women and girls, and killed some 2000.
Centuries of Portuguese colonial rule and 24 years of brutal, illegal
Indonesian military occupation have made East Timor one of the poorest
countries on the planet. East Timor has a 60% illiteracy rate, a per
capita gross national product of $340, and a life expectancy of only 48
years. The infant mortality rate is 135 per 1000 live births, and the
maternal mortality rate is twice that of other countries in Southeast Asia
and the Western Pacific.
The Bush administration and other governments have recently stated
their commitment to eradicating global poverty. The U.S. now advocates
that a large portion of international assistance to poor countries should
come in the form of grants. President Bush must put his money where his
mouth is and help East Timor embark on its new nationhood free of debt and
without crippling structural adjustment conditions. Worldwide poverty and
inequality within and between countries have increased throughout the era
of structural adjustment. The people of East Timor have only to look to
their neighbor Indonesia for a good example. Unfortunately, IFIs and the
U.S. leadership appear to be ignoring these lessons. In doing so, they are
doomed to repeat failed policies and practices, and it will be the East
Timorese people who suffer. At the UN International Conference on
Financing for Development in March, the U.S. continued to insist on tying
money for poor countries to the stranglehold of structural adjustment.
Unless those mobilized for global justice and debt cancellation rally in
support of a debt-free, structural adjustment-free East Timor, the people
of the world's newest country may be subjected to a new form of economic
colonialism.
For more information, see ETAN media release, East
Timor Action Network to Bush: 'Put Your Money Where Your Mouth Is' Calls
for a Debt-Free East Timor.
Additional background can be found at www.etan.org. You can also
contact Karen Orenstein, ETAN's
Washington Coordinator, 202-544-6911.
SAMPLE LETTERS (please modify to
use your own words)
To Members of Congress
Write: Your Senator, Senate, Washington, DC 20510 Your Representative,
House of Representative, Washington, DC 20515
Dear (Senator/ Representative) ______________,
I am writing to ask you to support East Timor, the world's newest
nation, at this most critical time in its development. The new nation,
which becomes fully independent on May 20, is still rebuilding from 1999's
Indonesian military-wrought destruction. East Timor is facing an
approximately $184 million budget shortfall over the first three years of
independence.
If the budget gap, small in international terms, is not covered by
pledges at the pre-independence East Timor Donors Conference, East Timor
may fall into the cycle of debt and poverty, which plagues so many poor
countries.
I urge you to contact Deputy Secretary of State Richard Armitage, to
tell him you support a U.S. pledge of grants covering at least 25% of East
Timor's budget gap with no macroeconomic conditions attached. I also urge
you to work with other Members of Congress to supply the necessary funds
through appropriations and/or State Department monies.
This support would be in line with recent administration commitments to
the global eradication of poverty. Covering 25% of East Timor's budget gap
would ensure that international support given the new country during its
transition to independence would continue to be meaningful. It is also the
least the U.S. can do for a people who suffered so greatly for their
independence.
I look forward to your response.
Sincerely,
Name
Contact info
-------------------------------
Write Deputy Secretary of State Richard Armitage. Fax: 202-647-6047 or
e-mail: askpublicaffairs@state.gov
U.S. Department of State
2201 C Street NW
Washington, DC 20520
Dear Deputy Secretary Armitage,
I am writing to ask you to support the world's newest nation at this
most critical time in its development. East Timor, still rebuilding from
1999's Indonesian military-wrought destruction, faces an approximately
$184 million budget shortfall over the first three years of independence.
If the budget gap, small in international terms, is not covered by
pledges at the pre-independence East Timor Donors Conference, East Timor
may fall into the cycle of debt and poverty, which plagues so many poor
countries.
I urge you to support a U.S. pledge covering at least 25% of East
Timor's budget gap with grants, with no macroeconomic conditions attached.
I also urge you to work with others in the administration and abroad to
make sure the entire gap is financed with condition-free grants.
This support would be in line with President Bush's stated commitment
to the global eradication of poverty. Covering 25% of East Timor's budget
gap would ensure that international support given the new country during
its transition to independence would continue to be meaningful. It is also
the least the U.S. can do for a people who suffered so greatly for their
independence.
I look forward to your response.
Sincerely,
Name
Contact info
see also: For A Debt-Free East
Timor
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