Why are the poor countries in debt?
Many unfair debts are owed by poor countries to rich countries. In fact, poor countries are often repaying rich countries for unfair debts while they cannot afford to look after their own citizens.
Here’s how debt built up for the people of the Philippines:
President Ferdinand Marcos remained in power despite being unpopular with the Filipino people. He had American support as he sided with them during the Cold War. One of the main forms of support was loans from governments and international organisations such as the World Bank.
During his rule, Marcos is thought to have stolen up to US$10 billion from the Filipino people and squandered it on a rich lifestyle. That’s over £6,200,000,000 (a LOT of zeros). Interest rates went up making debt repayments more than originally agreed, so Marcos had to borrow more money to pay back his original debts.

Altogether throughout Marcos’s dictatorship the International Monetary Fund and World Bank lent the Philippines US$5.5 billion, with a further US$3.5 billion from foreign governments such as the United States. Over $9 billion was lent by the foreign private sector, such as banks in rich countries.
When Marcos was thrown out of power, the new president decided that all of the debts should be repaid rather than using the money to help the poor people of the Philippines.
Since 1970 the Philippines government has been lent US$110 billion, repaid US$125 billion, but is still thought to owe US$45 billion which it is repaying despite many Filipino people living in poverty.
In fact the Philippines government spends almost 30 per cent on debt payments each year, more than is spent on public health and education combined.
Many people in and out of the Philippines, and in the many other poor countries struggling with unfair debt, have been campaigning for cancellation of this debt.
ACTION: You can add your voice to the people calling for cancellation of unfair debt by joining the Jubilee Debt Campaign.
Source: old.jubileedebtcampaign.org.uk