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Background
The history of the sovereign debt crisis since the 1980s has shown that loans have often been extended to developing nations with insufficient regard for democracy or citizens’ welfare.
In many cases, loans were used to buy political support or to
fund non-viable projects. They have been stolen and misused on a large scale, and parliamentary and citizen consultation in loan decisions has been non-existent or marginal.
Such loans have been detrimental to the development of debtor countries and have commonly been described as “illegitimate”. However repayments continue to be demanded by creditors. These sap much-needed resources from impoverished countries.
What is the parliamentarian's declaration for shared responsibility?
This declararation recognises that democratically elected parliamentarians have a right and duty to scrutinise the actions of their governments as either lenders or borrowers.
Parliamentarians who sign the declaration commit to support further research into the concept of illegitimate debt as well as initiate parliamentary audits of existing claims and debts. They also agree that principles of shared responsibility must be included in sovereign loan agreements.
To prevent repeated rounds of unsustainable and irresponsible lending and borrowing, the participation of parliaments is fundamental. This will help to ensure that loan agreements really do reflect the aspirations of the citizens of developing countries around the world.
