OCEANIA - Debt crisis in the Pacific: Jubilee Year campaign aims to provide relief

Port Moresby (Agenzia Fides) - "Fiji, Papua New Guinea, and Samoa are Pacific countries at risk of experiencing the worst consequences of internal and external debt. The Caritas Internationalis Jubilee campaign, 'Transform Debt into Hope,' should convince everyone to be vigilant about what political elites could do to avoid the dire circumstances of debt growth," writes Father Giorgio Licini, missionary of PIME (Pontifical Institute for Foreign Missions) and Caritas collaborator of the Episcopal Conference of Papua New Guinea and the Solomon Islands, in a letter sent to Fides. "About fifty civil society and religious organizations around the world support the 'Turn Debt into Hope' petition and campaign. However, there are none from Oceania," Father Licini points out, referring to the specific situation in Papua New Guinea, the country where he lives.
"Papua New Guinea," he points out, "owes creditors approximately 50 billion kina (approximately 11 billion euros, ed.), as the country prepares to celebrate the fiftieth anniversary of its independence in September. The country's solid financial position in the first two decades after independence from Australia, when the national currency was essentially equal to or more than the US dollar, is now a distant memory." "The country," he explains, "is classified as rich in resources but has poor human development indicators. About 75 percent of the population lives in poverty or has only the bare necessities of life, often in remote and inaccessible areas lacking basic services. The debt accumulated in recent years is more or less evenly distributed between domestic and foreign debt."
Corruption is a social challenge: "The perception that the country is at least partially determined by corruption and mismanagement is strong. Gaining government positions and jobs is widely perceived as an opportunity for personal enrichment, with family, clan, and allies benefiting in every way possible," the missionary reports. "Yet," he continues, "with clear political will, Papua New Guinea can curb corruption, keep its debt under control, and avoid the worst results seen in other developing countries, which are now unable even to pay the interest on their debts."
In light of this global concern, Caritas Internationalis has launched a campaign in the 2025 Jubilee Year entitled "Turn Debt into Hope," which puts into practice the call for debt relief suggested by Pope Francis in the Bull of Indiction for the Jubilee Year.
There are concrete figures on the current "debt crisis," which affects more than 100 countries: The International Monetary Fund and the World Bank estimate that 60 percent of low-income countries are in "debt distress" or are on the verge of defaulting on their repayment obligations. "As many as 48 developing countries," says Father Licini, "spend more on debt interest payments than on health and education, further perpetuating inequality and poverty. More than 3.3 billion people live in these countries."
And while rich countries hold the majority of the debt, "the cost of borrowing for developing countries is two to twelve times higher, trapping many of them in a cycle of rising debt," Father Licini notes. "In 2023, countries in the Global South spent 12.5 times more on debt repayment than on combating climate change, making them vulnerable to its devastating impacts. What we urgently need, then, is a bold commitment from governments and financial institutions to stop the debt crisis now: the cancellation of unjust and unsustainable debts to prevent debt crises from recurring by addressing their root causes." They also call for "a reform of the global financial system to prioritize people and the planet" so that the same crisis cannot repeat itself cyclically.
A particular goal of the Caritas Internationalis campaign, according to the missionary, "is the cancellation of 'unsustainable debt,' i.e., debt that cannot truly be repaid." At the international level, the petition will be presented wherever world leaders gather to discuss politics and economics, for example at the G7 summit in Canada in June, the G20 summit in South Africa in November, and the COP30 summit in Brazil. (PA) (Agenzia Fides, 5/4/2025)

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