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Memo to Journalists on ECA Reform Press Kit
Dear Journalist,
The enclosed press packet contains information on the international campaign
to reform the world's leading Export Credit Agencies (ECA). These agencies
are now collectively among the world's largest public financiers of private
sector industrial projects in developing countries which often have devastating
environmental and social impacts. For example, ECAs' financial support
for heavy-impact oil, mining and gas projects in the third world now eclipses
that of the World Bank Group and all other major multilateral finance
institutions combined.
As world leaders struggle over what to do with the Kyoto Protocol, their
own government's ECAs are worsening climate change by financing and expanding
a number of fossil fuel -burning power plants abroad. According to a recent
study of the World Resources Institute, ECAs are financing at least half
of all new energy-intensive, greenhouse gas-emitting infrastructure in
the developing world. In addition, ECAs provide linchpin financing for
mining, pulp, paper, logging and chemical plants with dubious developmental
benefits and devastating environmental and social impacts. Many ECAs also
help finance arms shipments that add to the military and economic instability
and debt burden of the developing countries. ECAs account for a quarter
of all developing country debt, and for more than half the debt owed to
official, government creditors. Much of this debt has been incurred for
economically unproductive and ecologically and socially destructive purchases
and investments. Yet despite these impacts, most ECAs have grossly inadequate
or no environmental or social safeguards.
Since 1998, the G-8 has issued three separate mandates for ECA reform.
Yet, after five years of negotiations, the Export Credit Group has little
substantive progress to report to the G-8 on protecting the environment
and achieving sustainable development. As public outcry for ECA reform
mounts, more press coverage is being generated.
This press kit includes:
For more information about this press kit, contact: info_at_eca-watch.org
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