House Speaker Jose C. de Venecia Jr.’s proposal to convert half of the debt owed by 100 heavily indebted middle-income nations into equity in development programs to achieve the UN Millennium Development Goals (MDGs) is "catching fire" as more influential and prestigious leaders gave their endorsement to the action program.
Among the latest to endorse De Venecia’s debt-for-equity in MDG projects are Cambodian Prime Minister Hun Sen, Ukraine Chairman of the Verkhovna (Parliament) Volodymyr Lytvyn, and the United Nations Educational, Scientific, and Cultural Organization (UNESCO).
Senior US Sen. Daniel Inouye told De Venecia following a recent meeting in Washington that he would place in the US congressional record the full text of De Venecia’s debt-for-equity program in giving it his full endorsement.
The latest support for De Venecia’s initiative followed UN Secretary General Kofi Annan’s unprecedented endorsement in which he praised De Venecia for using debt conversions in dealing with external debt to "finance sustainable development programs."
Annan asked De Venecia to bring the Philippine proposal "to the attention of world leaders" because it is innovative and could be one of the key programs to achieving the UN MDGs.
The United Nations Development Program (UNDP) and various Asian and European heads of parliament also gave their endorsement following De Venecia’s official presentation of the action program at UN Summit of Speakers of Parliaments in New York City last month and before senior officials of the International Monetary Fund in Washington D.C.
President Arroyo also strongly endorsed the Philippine debt-for-equity program to world leaders during her unprecedented address at the Security Council and the Inter-faith Summit and the UNASEAN Summit at the UN headquarters in New York City last month.
"The unequivocal show of support indicates the desire of leaders of the world to solve the chronic problem of world debt and the need for heavily indebted countries to fund their development programs to reduce poverty," De Venecia said.
In endorsing the debt-for-equity program, Lytvyn said debtor and donor countries should give priority to the action program, which he called "bold, outstanding, and has strong rationale."
"It is quite difficult for any country to withstand the challenges of today alone, without assistance of the other countries," Lytvyn said.
Hun said heavily indebted countries should support the proposal to achieve debt relief and debt reduction.
