AFRICA ACTION
Africa Policy E-Journal
April 30, 2003 (030430)

Africa: Treatment Access Updates
(Reposted from sources cited below)

This posting contains several updates on developments related to
access to AIDS treatment: (1) a notice from the Treatment Action
Campaign on the temporary suspension of their civil disobedience
campaign pending a new meeting with the South African government,
(2) two short press releases from the National Association of
People Living with HIV/AIDS (NAPWA) in South Africa against the
Pharmaceutical Manufacturing Assocation (PMA), and (3) an analysis
from Brook Baker of Healthgap of the recent move by GlaxoSmithKline
lowering the cost of its antiretroviral drugs.

Another posting today contains new press releases and other
material from Africa Action related to the Africa's Right to Health
Campaign.

+++++++++++++++++end summary/introduction+++++++++++++++++++++++

Treatment Action Campaign http://www.tac.org.za

TAC NEC RESOLUTION

29 April 2003

At a meeting on April 25th 2003 with Deputy President and SANAC
Chairperson, Jacob Zuma, TAC was asked to consider suspending its
civil disobedience (Dying for Treatment) campaign, pending a full
day meeting with SANAC on Saturday May 17th 2003 and its outcomes.

At a meeting of the TAC NEC, and several key allies, on April 29th
2003 it was agreed that the campaign would be suspended. This was
despite reservations expressed by several NEC and staff members who
stressed the urgency of changing government policy on ARV treatment
and the NEDLAC draft agreement. TAC NEC members also reiterated
concerns about whether SANAC has the power to act to save lives.

However we are suspending the campaign in the interest of ensuring
the fullest opportunity for government to prove its good faith and
to demonstrate that TAC's campaign is about saving lives. The
decision will be explained and defended at TAC branch meetings.

TAC will decide on whether to resume this campaign depending on the
outcomes of the SANAC meeting and the process of preparation for
it. Our next NEC will take place on May 18th 2003.

It was noted that it was agreed with the Deputy President that:

1. On the agenda of the SANAC meeting will be (not necessarily in
this order):

* An ARV treatment programme for the SA public sector and the
report of the Costing Committee; * The Nedlac Framework Agreement:
how it was arrived at and how it will be finalised; * TAC's
relationship with government and SANAC: questions SANAC may have
about TAC's structure, finances, decision on civil disobedience
etc.

2. To prepare for this meeting a joint committee of SANAC and TAC
will be set up to work on the agenda as well as necessary
supporting documentation. TAC proposes that any disputes in this
committee be referred to the SANAC chairperson with clear
recommendations.

TAC proposes that where relevant, the outcomes of the May 17th
meeting be immediately and formally tabled with government as
urgent recommendations from SANAC with a request that they be
considered and confirmed within three weeks of the SANAC meeting.
The outcomes must include using the legal powers of government to
reduce the prices of medicines.

The TAC NEC reiterates its desire to work constructively with
government and all other sectors of society in HIV prevention and
treatment. However, should we encounter further unjustifiable
delays or deceit, we will continue with all existing campaigns to
get agreement on a national plan that saves lives by preventing HIV
infection and treating people with AIDS.

Proposed by Mark Heywood, TAC National Secretary Seconded by Zackie
Achmat, TAC Chairperson Agreed unanimously by TAC NEC members and
staff present on teleconference: Theo Steele, Luyanda Ngonyama,
Arthur Jokweni, Ivy Ntlangeni, Cati Vawda, Sindiswa Godwana,
Ncumisa Nongo, Sharon Ekambaram, Nathan Geffen, Mandla Majola,
Sipho Mthathi, Nonkosi Khumalo, Pholokgolo Ramothwala, Desmond
Mpofu, Thembeka Majali, Rukia Cornelius

- - - - -

National Association of People Living with HIV/AIDS
P. O. Box 66 Germiston 1400
Tel : +27(011) 872 0975 Fax : +27(011) 872 1343
[email protected] http://www.napwa.org.za

Organise, Mobilise and Empower P.W.A. S

29 April 2003

Media alert

15 NAPWA members arrested

15 members of the National Association of People Living with
HIV/AIDS (NAPWA) who have been protesting peacefully today outside
the offices of Pharmaceutical Manufacturing Association (PMA) as
part of its unfolding programme to pressurize Pharmaceutical
Companies in providing Antiretroviral Drugs free of charge to
people Living with HIV/AIDS (PWA s) have been arrested in Midrand
Police Station.

For more information contact:
Sechaba Ranthako 072 291 3913

21 April 2003

NAPWA is continuing with her Black Easter Campaign

Up to date - We have 50 members who have joined and are part of the
campaign. These members are coming from 5 Provinces i.e North West,
Mpumalanga, Free State, Limpompo and Gauteng. NAPWA members have
vowed not to leave PMA premises until their demands are positively
addressed.

They are hoping to make their impact to be felt more on Tuesday, 22
April 2003, when NAPWA will forcefully enter the PMA premises. If
PMA does not respond positively to our demands NAPWA will intensify
her struggle and put pressure on the Pharmaceutical Companies by
involving our communities in consumer boycotts and forcefully
entering all the premises of Pharmaceutical Companies.

NAPWA is in these exercises and/or struggle because she believes
that Pharmaceutical Companies are the ones that need to provide
treatment to people who need it (treatment). NAPWA says
Pharmaceuticals have made enough profit and the moral thing they
can do is to Provide treatment free of charge to poor PWA's .The
notion that it is the duty of the government only to provide
treatment is misplaced and uncalled for, government has a
responsibility to provide nutrition to root out poverty while
building health care infrastructure.

We see Pharmaceutical Companies as the main institution that can
save our world from HIV/AIDS by donating and subsidizing treatment
for the benefit of the poor. Their obsession with profit making
make them to be regarded as murderers of the highest order in our
lifetime. NAPWA has vowed to stay in PMA offices at Midrand until
their demands are met. The struggle for treatment continues.

PWA rights are human rights. For more information please contact
Thanduxolo Doro NAPWA Deputy Director and Spokesperson +27 11 (0)83
489 3912

Or Nkululeko Nxesi NAPWA National Director +27 11 (0)83 478 9462
mailto:[email protected] [email protected] reposted from
Aids-Africa, a forum for communication and information on AIDS
related issues in Africa

- - - - -

The Real Politics of GSK's Price Cut

Brook K. Baker, Health GAP (http://www.healthgap.org)

April 28, 2003

[Note: The GlaxoSmithKline press release of April 28 is
available at http://www.gsk.com/media/pressreleases.htm
Brief excerpts from the release:

"GlaxoSmithKline(GSK) today announced that it has further reduced
the not-for-profit prices of its HIV/AIDS medicines for the world's
poorest countries by up to 47%. The latest reduction lowers the
not-for-profit price of Combivir - the backbone of WHO-recommended
HIV/AIDS treatment regimens - to 90 cents per day. ...

GSK's single, not-for-profit prices are available to a wide range
of customers in the Least Developed Countries and all of
sub-Saharan Africa - a total of 63 countries. Eligible customer
groups include governments, Non-governmental organisations (NGOs),
aid agencies, UN agencies and international purchase funds like the
Global Fund to Fight AIDS, TB and Malaria. In recognition of the
gravity of the HIV/AIDS situation in sub-Saharan Africa, employers
who offer HIV/AIDS care and treatment to uninsured staff are also
eligible for GSK's not-for-profit prices for antiretrovirals. ...

GSK is the leading supplier of HIV/AIDS medicines, providing almost
twice as many antiretrovirals as the second largest supplier.]

Nobody should scoff at the importance of lower HIV/AIDS drug costs,
least of all those who have fought so hard, for so long, for them
to happen. Nonetheless, treatment activists always have a healthy
dose of skepticism when price reductions are trumpeted to the
worldwide press. They usually signal either a grudging capitulation
to an activist campaign, a strategic response to generic
competition, or a preemptive response to a legal threat. All three
factors seem to be playing a role in GlaxoSmithKline's most recent
announcement.

Glaxo is the main producer of HIV/AIDS antiretroviral drugs and
thus has been a principle target of activist campaigns for many
years. Because it faces so little real competition, Glaxo has been
among the slowest in reducing its prices for AIDS medicines in
developing countries. This has resulted in ACT UP and other
activist demonstrations at corporate headquarters, in letter
writing campaigns, in shareholder resolutions, and a ton of bad
press. Thus, it comes as no surprise that Glaxo would continue to
make price concessions in an effort to relieve some of the activist
pressure.

Glaxo is also facing serious competitive threat from generic
producers who have continued to undercut its previous price
discounts, who have received prequalification from WHO with respect
to the quality of their products, and who have begun to respond to
the subsidized purchasing power represented by the Global Fund, the
World Bank, and other donor sources. As a result, for the first
time, generic producers are beginning to see some larger purchase
orders and can begin to see the emergence of a sustainable and
robust market for a large-volume of AIDS medicines. At present,
India's Ranbaxy is the cheapest prequalified generic supplier at
$270 per year, but Hetero of India sources at $201 per year and
prices will continue to go down as efficiencies and economies of
scale increase. Doctors Without Borders has predicted prices well
below $100 per year once full-scale production begins.

These competitive features are important because the Global Fund
has already committed to lowest cost sourcing consistent with
national and international patent schemes. Thus, where no patents
are on file (in many of the smallest and poorest African countries)
and/or where compulsory licenses have been issued for imported
medicines, countries must preferentially source the cheaper generic
medicines in order to be eligible for Global Fund money to purchase
ARVs and drugs for opportunistic infections. In this regard, Glaxo
can be seen as having tried to match the generic pricing levels set
by Cipla, Ranbaxy, Aurobino, and Hetero in order to remain in the
running for purchases subsidized by the Global Fund.

However, Glaxo also engages in price competition in order to deter
scale-up of generic capacity. By matching generic price reductions,
Glaxo forces generic producers will think twice about expanding
their capacity. After all, Glaxo is signalling its willingness to
dump medicines at bargain basement prices in order to preempt the
emergence of a truly competitive generic industry. Moreover, Glaxo
and other drugs companies are trying to tie up the most lucrative
developing country markets by negotiating directly with some of the
biggest purchasers, like the U.S. government for Bush's unilateral
AIDS initiative (do we think George Bush's $300 came out of thin
air), like the South Africa and Botswana's governments, and like
Anglo American.

Finally, Glaxo has faced some unprecedented legal threats. Like
other drug companies, it has faced damaging patent challenges while
the industry as a whole has been rocked by price fixing charges,
deceptive patent-listing charges and the like. In addition, Glaxo
has had its pricing for AIDS medicines directly challenged in a
case brought by the AIDS Healthcare Foundation. Most importantly,
however, Glaxo has had its "discount" pricing scheme challenged in
South Africa in a case brought by the Treatment Action Campaign
before the Competition Commission. The Competition Commission is
empowered to investigate TAC's claim of excessive pricing by
checking the company books and seeking detailed information about
costs of production. Moreover, the Commission might well be
authorized to issue a compulsory license or impose punitive damages
totalling 10% of Glaxo's entire annual turnover of drug sales in
South Africa. An interesting side feature of a compulsory license
issued directly by the Competition Commission or subsequently by
the Patent Department would be that it would not be subject to the
"primarily for domestic use" rule found in TRIPS. In other words,
South Africa could issue an "anti-competition" compulsory license
authorizing exports to all of sub-Saharan Africa. There is strong
reason to believe that Glaxo might be seeking to avoid an abuse of
patent or excessive pricing finding by making its most recent price
concession.

Whatever the true calculation of factors influencing Glaxo's
decision, economies of scale are likely to be trivial. Glaxo has
bragged that it has increased its sale of Combivar from 2.2 million
pills in 2001 to nearly 6 million in 2002. I guess its better to
count pills than patients, because when you divide these numbers by
730 (2 pills a day times 365 days in a year), you see that Glaxo is
now treating providing preferentially priced Combivar to only 8219
patients in developing countries. Given that nearly 500,000
patients in the U.S. and Europe are receiving ARVs, many of them
Combivar, it's hard to see how there are new found economies of
scale in Glaxo plants. (In this regard, Glaxo's sales of ARVs in
all developing countries is only .2% of its annual gross sales and
probably less 2% of its total AIDS drug sales.) What may be true
however, is that the costs of base ingredients are falling as a
growing number of patients in developing countries are finally
accessing both patented and generic products.

An interesting feature of Glaxo's new found economies of scale and
manufacturing efficiencies is that it is presumably now making even
more money on its sales in the U.S. and E.U. Since it sells
Combivar at $9.00 a pill in those two markets, presumably it could
now knock a dollar off the price without affecting its exorbitant
profit!

A last factor to note about Glaxo's price offer is that it is still
significantly restricted, at least with respect to the private
sector purchases and with respect to the number of developing
countries included. Thankfully, Glaxo does commit to discount
pricing for 63 countries (all of sub-Saharan Africa and
approximately 10 other least developed countries) but this list
leaves out a lot of developing countries with a high disease
burden. Likewise, although the offer includes governments, NGOs,
aid agencies, UN agencies, and the Global Fund, it does not include
the entire private sector. Instead, the private sector offer is
limited to employers who offer HIV/AIDS treatment to "uninsured
staff." Although this distinction is not a huge issue in many of
the poorest countries, there is an elite in developing countries,
including a significant private sector in South Africa that does
provide ARV coverage through medical aid schemes. For the tiered
pricing to be most effective, it does not make sense to disrupt
participation in the private health sector by maintaining huge
price disparities between private and public sector drugs.

In the long run, the best way to evaluate the Glaxo pricing
discount is to assess its impact on finding a sustainable solution
to an ongoing and accelerating problem. Based on this kind of
evaluation, Glaxo's offer will be counterproductive in the long run
if it prevents the development of a robust generic industry that
achieves cost-efficient economies of scale and that has some
internal competition to drive prices down. In the short run, the
discounted drugs are registered, they utilize an existing
distribution system, and they are now significantly cheaper.
However, the most viable long term solution is one that energizes
highly efficient production in India and elsewhere, not one that
maintain the super-monopoly status of the patent industry.

+++++++++++++++++++++Document Profile+++++++++++++++++++++

Date distributed (ymd): 030430
Region: Continent-Wide
Issue Areas: +economy/development+ +health+

************************************************************
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AFRICA ACTION
Africa Policy E-Journal
April 30, 2003 (030430)

Africa Action: Action Updates
(Africa Action document)

This posting contains two recent press releases from Africa Action,
one responding tof President Bush's press conference yesterday and
the other issued in advance of last week's demonstration at the
South African Embassy in support of the Treatment Action Campaign
in South Africa. Africa Action joined ACT UP New York and
Philadelphia, Health GAP, African Services Committee and Student
Global AIDS Campaign as co-sponsor of the embassy demonstration
which brought out several hundred people. Similar events were held
around the world, with groups calling attention to the 600 people
a day dying of AIDS in South Africa and the urgency of action to
provide treatment. [A report of the Washington demonstration
appeared in the Washington Post for April 25: see
http://www.washingtonpost.com/wp-dyn/articles/A35426-2003Apr24.html ]

Also included are plain text versions of two new background fact
sheets from Africa Action, for use in local organizing. For
formatted versions of these and additional similar resources, see
http://www.africaaction.org/action/campaign.htm

Another posting today contains additional related updates from the
Treatment Action Campaign, the National Association of People
Living with HIV/AIDS (NAPWA), and Healthgap.

Also last week, responding to the initiative of Africa Action, the
city of Richmond, in West Contra Contra County, California, adopted
a resolution to boycott World Bank bonds until the World Bank
cancells its debt claims against impoverished countries. For a
press release and a copy of the resolution, see
http://www.africaaction.org/desk/pr0304d.htm

+++++++++++++++++end summary/introduction+++++++++++++++++++++++

Africa Action Press Release

April 29, 2003

Contact: Ann-Louise Colgan (202) 546-7961

Africa Action says White House still slow to act on AIDS crisis

Bush promise to Africa not being fulfilled; Money needed now to
fight greatest global threat to human security

Tuesday, April 29, 2003 (Washington, DC) - Today's call from
President Bush for quick action from Congress on the global AIDS
crisis comes in response to pressure from Africa Action and other
groups, demanding a greater U.S. commitment to defeating the AIDS
pandemic.

Salih Booker, Executive Director of Africa Action, said this
afternoon, "The Bush Administration is finally beginning to grasp
the gravity of the AIDS crisis in Africa, and it now acknowledges
that AIDS is the greatest global threat of our time. However, the
White House is still failing to match rhetoric with resources."

In his State of the Union address in January, President Bush
identified Africa's AIDS crisis as a U.S. priority and promised an
'emergency' response. However, the President has requested no new
money for this year (2003), and his budget request for 2004
included only $450 million in new money to fight AIDS. In the Rose
Garden today, President Bush indicated his support for the Hyde
Bill, which would authorize $3 billion for global AIDS in FY2004,
earmarking up to $1 billion of this for the Global Fund to fight
HIV/AIDS. This is at least an improvement over the President's own
request.

Salih Booker said today, "The Hyde Bill represents the minimum that
the U.S. should be doing to fight global AIDS next year and any
attempts by conservatives to restrict this initiative will be seen
for what they are - anti-African in the extreme. Beyond this
authorization bill, money is still urgently needed this year, and
especially for Africa. President Bush made a commitment to saving
lives in Africa, but millions more will die this year unless the
President acts to mobilize money NOW!"

Booker added, "We need an emergency supplemental for this year to
support a war on AIDS. After all, the Bush Administration secured
$79 billion in a supplemental for war in Iraq. Even Secretary of
State Powell has said that AIDS is the biggest threat on the face
of the earth, yet the money needed to fight this threat is not
forthcoming."

Booker continued, "What U.S. policy needs to prioritize is an
increase in money for AIDS this year, specifically support for the
Global Fund to fight HIV/AIDS. Next, Africa's illegitimate debts
should be canceled, enabling governments to spend money on health
care instead of debt repayments. Finally, the White House must
break with the pharmaceutical industry and support African
countries' access to cheaper, generic drugs. These measures are
essential to waging a successful war against AIDS."

Africa Action continues to mobilize support across the U.S. for its
Africa's Right to Health Campaign.

For more information, see http://www.africaaction.org

- - - - - - - - - -

Africa Action Press Release

April 24, 2003

Contact: Ann-Louise Colgan 202/546-7961

Africa Action Confronts South African Government

AIDS Activists Demand Treatment for People Living with HIV/AIDS;
Protests today at South African Embassy in Washington, DC and
around the World

Thursday, April 24, 2003 (Washington, DC) - This afternoon, Africa
Action will join with AIDS activists around the world in a Global
Day of Protest to demand that the South African government provide
AIDS treatment to all those living with HIV/AIDS in South Africa.

At 1 pm, protestors in Washington, DC will deliver 600 pairs of
shoes to the South African Embassy at 3051 Massachusetts Avenue,
NW. These shoes symbolize the number of people dying in South
Africa each day without access to AIDS medications.

Africa Action's Executive Director, Salih Booker, said today,
"There are nearly 5 million people living with HIV/AIDS in South
Africa. They have a right to health!"

He continued, "Two years ago, we joined with activists around the
world to defeat the pharmaceutical industry's attack on South
African laws promoting access to affordable healthcare. Last year,
following an unsuccessful dialogue with South Africa's Ambassadors
in Washington and New York, Africa Action wrote President Thabo
Mbeki pleading for an aggressive government assault on AIDS and
Poverty. Today, we mourn the unnecessary loss of life resulting
from Pretoria's inaction and we demand treatment access for all!"

The global day of protest was initiated by Treatment Action
Campaign (TAC), a leading grassroots AIDS activist group in South
Africa. Today's actions form part of TAC's campaign to force the
South African government to institute a national HIV/AIDS treatment
plan. Despite massive national and international pressure, the
South African government has refused to support a national plan to
provide treatment and care, including access to anti-retroviral
drugs, to all those living with HIV/AIDS in South Africa.

Salih Booker said today, "South Africa is ground zero of the global
AIDS pandemic. The failure of the government to provide stronger
leadership has allowed the U.S. and other rich countries to evade
their responsibilities to address this human catastrophe. The
lives of all of these people are valuable and the deserve
treatment and care. This is an obligation of the South African
government, and indeed what the liberation movement fought for."

Africa Action is a co-sponsor of today's protest in Washington, DC.
Other sponsors include: ACT UP New York and Philadelphia, Health
GAP, African Services Committee and Student Global AIDS Campaign.

- - - - - - - - - -

Africa's Right to Health Campaign Fact Sheet

The Color of AIDS: Racism and AIDS in the U.S. and Africa

April 2003

[full formatted version, with graphics, available at
http://www.africaaction.org/action/colorofaids2003.pdf">

"While AIDS is a global threat that does not differentiate by race
or class, and is not confined by borders, it is mainly killing
Black people." - Salih Booker, Africa Action

"More and more, the face of HIV/AIDS is black. If we don't fight
back, we'll lose a generation." - Phill Wilson, The Black AIDS
Institute

HIV/AIDS is a deadly global threat, and no one is immune. But some
people are more vulnerable than others. At home and abroad, AIDS
takes its most devastating toll in poor communities, where people
lack access to adequate health care.

Black people are the most affected by the HIV/AIDS crisis. Africa
is "ground zero" of the global pandemic, home to almost
three-quarters of those living with HIV/AIDS worldwide. The region
with the next highest infection rates is the Caribbean. Here in the
U.S., HIV infection rates are rising rapidly in communities of
color, especially among young people.

HIV/AIDS has become the new "Black Plague". Because most of those
dying are poor and Black, the response of policy-makers to the
spread of HIV/AIDS has been slow and inadequate. U.S. domestic and
foreign policies must give greater priority to defeating HIV/AIDS
where it is most urgent in Black communities here, in the
Caribbean, and throughout the African continent.

AIDS in Africa

* Africa is home to almost 30 million people living with HIV/AIDS
out of 42 million worldwide.

* More than 70% of the AIDS-related deaths to date (as of 2001)
have been in Africa.

* Africa is home to more than 12 million AIDS orphans.

AIDS in the U.S.

* African-Americans represent just under 13% of the U.S.
population, but almost 38% of HIV/AIDS cases.

* More than half of all new HIV infections are among Blacks.

* AIDS-related illnesses are the leading cause of death for
African-American men and women aged 25-44.

Why is the Face of AIDS Black?

In the U.S.

* HIV treatments have reduced AIDS deaths, but treatment and care
is often not available to Black people.

* The U.S. government has not provided adequate funding to meet the
growing needs of Black communities for the AIDS Drug Assistance
Programs (ADAPs) and the Minority AIDS Initiative.

* As a result, HIV infection rates continue to rise in Black
communities across the U.S.

In Africa

* Only 1% of people living with HIV/AIDS have access to
life-prolonging treatment.

* The Global Fund to Fight AIDS is the greatest hope for defeating
AIDS in Africa, but the U.S. refuses to contribute its fair share.

* As a result, nearly 3 million Africans will die of AIDS this year
without treatment.

Racism and apathy cost millions of Black lives every year.

The fight against Racism and AIDS will only be successful when
Black people around the world come together to defeat this deadly
threat to our common humanity.

Take Action! If You Don't, Who Will?

EDUCATE!

Plan an event with your church, on campus or in your community to
raise awareness about about HIV/AIDS in Africa. Africa Action can
provide speakers and other educational resources.

ORGANIZE!

Join the Africa's Right to Health Campaign! Contact Africa Action
tolearn about a local coalition in your area.

MOBILIZE!

Plan a call-in or e-mail day to pressure the White House to support
greater funding for the AIDS Drug Assistance Program and the Global
AIDS Fund: White House Comment Line: 202.465.1111. President Bush's
e-mail address: [email protected]

- - - - -

Africa's Right to Health Campaign Fact Sheet

Africa's Debt Fueling the fire of AIDS

April 2003

[full formatted version, with graphics, available at
http://www.africaaction.org/action/debt2003.pdf">

"Every child in Africa is born with a financial burden which a
lifetime's work cannot repay. This debt is a new form of slavery,
as vicious as the slave trade." All-Africa Conference of Churches

Africa is the world's poorest region, and most of its people live
on less than $1 a day... but African countries owe $300 billion in
foreign debt. This is a huge financial burden on the people of
Africa. While African countries struggle to cope with the HIV/AIDS
crisis and with extreme poverty, they must spend millions more on
debt repayments than on their own urgent priorities.

Africa's debts are owed to rich country governments like the U.S.
and Britain, and to international financial institutions, like the
World Bank and International Monetary Fund (IMF), which are
controlled by these governments. Each year, the poorest countries
in Africa are forced to pay more money to these wealthy creditors
than they receive in aid or in new loans. This debt gives these
foreign creditors great power over Africa's economies and over the
continent's future.

Debt is the greatest economic obstacle to African efforts to combat
the HIV/AIDS crisis. Debt repayments rob $15 billion from the
continent every year. This money could be used to provide health
care to millions of people and to fund the war on HIV/AIDS. But it
is instead being taken away by foreign governments and
institutions. Africa's debts must be canceled to allow Africa's
people to control their own resources and direct them towards their
real priorities combating poverty and the HIV/AIDS crisis.

Africa's Debt Toll The human cost of debt

HEALTH. Most African countries are forced to spend more money each
year on debt repayments than on health care for their people. $10
billion per year could turn the tide of the HIV/AIDS crisis in
Africa. But African governments are still paying $15 billion per
year to rich country creditors. Nearly 3 million Africans will die
of AIDS-related illnesses this year, and 500,000 African children
will die of malaria, while rich countries get richer at Africa's
expense.

EDUCATION. Many African countries have had to cut spending on
education in order to repay foreign debts. In 2002, 10 African
governments spent more on debt repayments than on health care and
primary education combined. Meanwhile, 42 million school-age
children in Africa are not enrolled in school. If Africa's debts
were canceled, spending on education could be doubled.

Africa's Debts are Illegitimate

* Many loans being repaid by African countries were made to Cold
War era dictators whom Africa's people did not choose and who used
the money to repress them. Example: In South Africa, the apartheid
regime took out more than $18 billion in foreign debt in its final
15 years in power. The victims of the apartheid regime should not
now be forced to pay for their previous repression.

* Many loans being repaid by African countries were made to corrupt
leaders who kept this money for themselves and added it to their
own personal wealth. Example: In the Democratic Republic of the
Congo (DRC), formerly Zaire, dictator Mobutu Sese-Seko received
more U.S. aid than the rest of Sub-Saharan Africa combined during
much of the Cold War, even though it was known that this money was
being diverted into his Swiss bank accounts. The people of the DRC
should not now have to pick up the tab for loans from which they
saw no benefit.

* African countries' debts have swelled massively over time as a
result of skyrocketing interest rates and harmful economic policies
forced on these countries by creditors. Example: Nigeria originally
borrowed $5 billion from foreign governments and institutions. It
has paid back $16 billion, but its debt still stands at $32
billion.

* African countries do not owe the U.S. and European countries
these countries owe Africa for the wealth and resources they have
stolen from the continent over centuries. Who really owes whom?

Cancel Africa's debt NOW!

Africa's debts are illegitimate and they should be canceled. Debt
cancellation is a matter of justice. It is also a matter of common
sense. African efforts to defeat HIV/AIDS cannot succeed until the
outward flow of money to foreign creditors is stopped. Debt
cancellation can make a real difference to people's lives: In
Mozambique, Senegal and Mali, debt relief has provided resources to
fight HIV/AIDS and to improve health care.

The current debt relief plan of the World Bank and IMF, the Heavily
Indebted Poor Countries (HIPC) Initiative, has failed to resolve
Africa's debt crisis. It has given some limited debt relief to some
African countries, but most are still paying billions of dollars in
debt repayments each year.

What is needed is outright debt cancellation. The World Bank and
IMF, the main creditors of Africa's debt, can afford to write off
these debts. But they refuse to do so because they want to retain
control over Africa's economies. The U.S. is the leading voice and
most powerful shareholder in the World Bank and IMF. It should use
its power to achieve debt cancellation for Africa NOW.

Take Action! If You Don't, Who Will?

EDUCATE!

Plan an event with your church, on campus or in your community to
raise awareness about Africa's debt crisis and how it undermines
the fight against HIV/AIDS. Africa Action can provide speakers and
other educational resources.

ORGANIZE!

Join the Africa's Right to Health Campaign! Contact Africa Action
to learn about a local coalition in your area.

MOBILIZE!

Stop one of the major institutions blocking debt cancellation for
Africa by Boycotting the World Bank! Contact Africa Action to learn
how to start a planning committee to urge your church, university
or city council to take a stand for debt cancellation in support of
Africa's Right to Health!

+++++++++++++++++++++Document Profile+++++++++++++++++++++

Date distributed (ymd): 030430
Region: Continent-Wide
Issue Areas: +economy/development+ +health+ +US Policy Focus+

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