The burden of external debt

22. The Synod Fathers voiced concern about the external debt afflicting many American nations and expressed solidarity with them. They were consistent in reminding public opinion of the complexity of this issue, acknowledging that “the debt is often the result of corruption and poor administration”.( ⁵⁹) In keeping with the spirit of the Synod's deliberations, such an acknowledgment does not mean to place on one side all the blame for a phenomenon which is extremely complex in its origin and in the solutions which it demands.( ⁶⁰)

Among the causes which have helped to create massive external debt are not only high interest rates, caused by speculative financial policies, but also the irresponsibility of people in government who, in incurring debt, have given too little thought to the real possibility of repaying it. This has been aggravated by the fact that huge sums obtained through international loans sometimes go to enrich individuals instead of being used to pay for the changes needed for the country's development. At the same time, it would be unjust to impose the burden resulting from these irresponsible decisions upon those who did not make them. The gravity of the situation is all the more evident when we consider that “even the payment of interest alone represents a burden for the economy of poor nations, which deprives the authorities of the money necessary for social development, education, health and the establishment of a fund to create jobs”.( ⁶¹)