Asian parties endorse JDV’s debt-conversion program

The Standing Committee of Asia’s political parties unanimously endorsed Speaker Jose de Venecia’s proposal for large-scale conversion of global debt into equity in major anti-poverty projects of more than 100 debt-ridden countries including the Philippines.

The endorsement came at the committee’s meeting here to draw up the agenda for the 4th International Conference of Asia’s Political Parties (ICAPP) which South Korea’s ruling Uri Party will host next year with more than 90 ruling and opposition parties expected to attend.

De Venecia, who chairs the Standing Committee, said his debt-conversion proposal would enable the poorest and majority of middle-income developing nations achieve the United Nations Millennium Development Goals (MDGs) of halving global poverty by fifty percent before 2015, reducing the incidence of dreaded diseases and improving the sustainability of the environment.

The Speaker said foreign creditors could convert fifty percent of the debt payments due them into debt for: reforestation to reforest the bald mountains in Asia, Africa and Latin America; mass housing; irrigation, post-harvest facilities and food production; hospitals and health care; schools, classrooms, and information technology; lean water, infrastructure projects; eco-tourism; and wealth-creating projects such as mining, reclamation, and natural resources development.

"This is not debt forgiveness or debt cancellation," De Venecia explained. "There need not be any technical loss to the lenders, because they will be given equity in the money-making development projects."

A resolution endorsing the Speaker’s proposal was initiated by Cambodia’s Prince Ranariddh, president of the Funcinpec party, Sen. Mushahid Hussain Sayed, secretary-general of the Pakistan Muslim League.

Both leaders said they expect Asia’s political parties to support de Venecia’s proposal and co-sponsor it for adoption by the United Nations. They are also hoping support would come from the International Monetary Fund, World Bank, G-8 countries, Asian Development Bank and the largest private banks.

De Venecia said debtor countries, before they could avail of funds from the said facilities, should have a commitment to "transparency, anti-corruption and fiscal reform."