Low-income Countries: Debt Cancellation

Bell Ribeiro-Addy Excerpts

Thursday 6th February 2025 Westminster Hall

[Bell Ribeiro-Addy (Clapham and Brixton Hill) (Lab)]

It is a pleasure to serve under your chairpersonship, Ms McVey. I start by commending my hon. Friend the Member for Southgate and Wood Green (Bambos Charalambous) for bringing forward this crucial debate, and for his continuous campaigning on this matter.

I chair the APPG for Afrikan Reparations and I have long called on the UK Government to engage in discussions around reparative justice. I have said time and again that reparative justice is about just that—justice. It is about more than handing over money; it is about addressing the structural inequalities that colonialism created and still perpetuates, and changing those global structures that keep the global south in its situation. Those inequalities have been instrumental in creating the debt that we are discussing today.

Reparative justice is about addressing disparities that are starkly evident in the fight against climate change, particularly in the context of our international financial system, which is, quite frankly, a relic of the 20th century. Worsening droughts in east Africa, tropical hurricanes in the Caribbean, and tsunamis in Asia show how Britain’s former colonies remain disproportionately vulnerable to the frontline effects of crises that they did little to cause. Not only did we engage in colonial crimes, but we remain a leading historical emitter.

The UK could take responsibility by reframing reparative justice within the context of climate justice. We could fund large-scale restoration projects, compensate for biodiversity loss, and help nations to adapt to climate change. That form of reparative justice could remove the burden of debt that is preventing those countries from fighting the climate emergency themselves, by building infrastructure to defend against some of the environmental challenges that, if we do not get our act together, will be permanent.

Some of the world’s poorest and most climate-vulnerable countries are seeing their debt payments grow twice as fast as their climate support—they do not stand a chance. When faced with extreme weather conditions every year, such as deathly floods and droughts, they are forced to borrow more and more to support their people and rebuild their infrastructure—adding to their already insurmountable debt.

In 2022, I joined a parliamentary delegation to Kenya with CAFOD and saw at first hand the impact of famine and drought on the people living in Marsabit County. Their agriculture and their livestock had been decimated—the country had been decimated—by one of the worst droughts in living memory. The situation that we all saw on the ground in Kenya brought home the devastating ramifications of the climate crisis, and the inequities that it is rooted in—inequities that we benefited from and have sustained since.

Kenya is not a notable emitter of carbon dioxide and does not drastically contribute to climate destruction. In fact, it is responsible for just 0.03% of global carbon dioxide emissions to date—around 160 times less than the United Kingdom. Yet man-made climate change, for which the UK has historical responsibility, is causing untold levels of destruction in that nation, and its debt crisis means that, like many other countries mentioned today, it is unable to take meaningful steps to address it. In 2021, its debt repayments were more than five times the amount of money the Government were spending on measures to tackle the climate crisis. Like many other countries, it is fighting this crisis with both hands tied behind its back.

Countries in the global south will face an estimated $290 billion to $580 billion in climate-related loss and damage ever year by 2030—every single year. At the start of the covid-19 pandemic, the G20 agreed a scheme to suspend debt payments for over 70 countries, but because private lenders were not made to participate on equal terms, countries that applied to the scheme had under a quarter of external debt payments suspended.

As hon. Members have mentioned, over 90% of the bonds owned by countries eligible for debt relief, under G20 schemes, are governed by English law. That means that they are under our control, and we can actually do something about them. The UK could play a leading role in addressing the debt crisis, instead of standing by as private creditors are bailed out. The Government should be supporting efforts to cancel debts for all climate-vulnerable countries with unsustainable debts by expanding the G20 common framework to include middle-income nations, and strengthen it to ensure that private creditors participate. To be frank, we know that the situation for the average person in some so-called middle-income nations is still dire.

I call on the Government to enhance the UK’s commitment on international climate finance overall and to encourage other countries to do the same. That should be done through a comprehensive financing facility to offer unconditional grants, not more debt, to countries facing climate disaster, to push for automatic debt payment suspension and relief for countries in the event of a climate-related disaster, and to introduce legislation to stop private creditors from suing those same climate-vulnerable countries. The UK’s role as a major historical emitter, a former colonial power and a current global leader places a special obligation on us to put climate justice at the heart of the global response to the disaster we now face.

Some people ask: why reparative justice and not simply aid? That is because aid has not worked, and when a duty is put on people to do something, and when they understand that they owe somebody something as a matter of justice, they are more likely to do it. Aid has become an industry. Aid itself is subject to supply and demand, and so many countries are not benefiting from it in the way that they should be. We need to look at this issue as one of reparative justice, and we the UK have to pay what we owe.

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[Andrew Rosindell (Romford) (Con)]

It is a pleasure to serve under your chairmanship, Ms McVey, for the first time as a shadow Minister.

I commend the hon. Member for Southgate and Wood Green (Bambos Charalambous) for securing this debate. Constituency names have changed; I have always known him as the hon. Member for Enfield Southgate. He spoke with real passion today, and he brings with him knowledge and expertise about a topic that we must all focus on more carefully. It is a sensitive issue, and we must ensure we get it right. It should not be a party political issue; we should be looking for solutions. I think that today’s debate has contributed to that important discussion, so I thank him for securing it.

As has been mentioned, Britain is a nation that has always been known for its Christian compassion. At the same time, we have always advocated the principle of helping others to help themselves as the best pathway to providing long-term sustainability, particularly for developing nations, many of which have been mentioned in the debate.

So many contributions have been very powerful, particularly that of the hon. Member for Loughborough (Dr Sandher), who spoke about Somaliland. I met representatives from Somaliland recently. It is so important that we use our knowledge and expertise to help developing countries to develop the type of economy that will generate wealth and prosperity. Having such debts around their necks will not help them to get out of their problems and become prosperous in the future. The hon. Gentleman drew on his expertise, and I commend him for it.

Others have spoken about issues such as colonialism. To be frank, I am not convinced that the hon. Member for Clapham and Brixton Hill (Bell Ribeiro-Addy) should focus on colonialism. There are other, more unifying things that we should talk about. Britain can lead the way in this if we get things right, but talking about Britain’s past wrongs—they are subjective, and there are a lot of good things that Britain has done—and tying everything to colonialism is a divisive route to go down. Let us look at solutions and advocate ideas that offer a way forward, rather than creating political division.

[Bell Ribeiro-Addy]

This is not necessarily a divisive issue. When we ask those who are suffering the most from these matters, we find that they believe that it is difficult to move forward because of some of the wrongs that have been done to them in the past. It is simply about recognition and looking at ways to tackle this issue, and at how we can deliver recompense for the wrong that we have done. It is not about being divisive; it is just about accepting what went wrong and understanding that we have a duty to make it right.

[Esther McVey (in the Chair)]

Order. I remind hon. Members that this debate is about debt cancellation for low-income countries.