The debt programs and projects on creditor institution promoter such as; IMF, World Bank, ADB, JBIC, etc. had provoked very high social cost like compulsory eviction, condemnation, destructing ecosystem and corruption. Empiric discovery on these cases said that the cost insured by a country to rehabilitate the impact arisen by those debt projects is adjustment policies of creditor structural institutions which need the capacities of creditor countries to insure it.
A UNICEF report in 2000 showed that many structural adjustment programs of World Bank and IMF were essentially responsible for the declining of health, nutrition, and education level of millions children in the third world countries. An example is in Indonesia, where structural adjustment caused the heaping debt and one of the latest countries through out the impact of economy crisis 1997-1998.
The large amount of debt burden also forced poor and developing countries to tackle extraction of their natural resources to serve debt repayment for developed countries. Moreover, the impact of climate change (flood, drought, and hurricane) caused poor countries need significant resources to rehabilitate their impacts. A report issued by OXFAM indicated that poor countries needed at least 50 billions US dollar per year for rehabilitation and shelters program towards climate change.
On the domestic front, these correlated with government policies to increase export of raw materials such as rubber, coffee, oil palm, gas and petroleum. An action to saturate capital desires by sacrificing nature forest and the damage of agrarian areas as plantation expansion consequences on the big scale and mining exploration in all debtor countries.
Instead of correcting these erroneous policies, international institution fund promotes new debt endowment to intensify and expand reach of the industrial products. From the beginning of 1992 till 2004, World Bank group had approved funding for 128 projects of fossil energy in 45 countries, including extraction, electric generator, and reformation policies of energy sector. It was later accounted that those projects contributed about 43.4 billion ton of carbon dioxide emission for world residents. Moreover, nearly half of petroleum, gas and coal projects of which funded by World Bank (and more than 80 percent of the projects for petroleum) were designed to saturate global market needs, primarily in developed countries.
In implementing those new debt projects, creditors obliged the debtor countries to perform structural adjustment agendas like private and liberation economy, such as water privatization, and liberation of gas and petroleum sector for new entry investment. Indeed all of those agendas accelerate earth destruction process and caused the debtor countries to be more and more susceptible to risk disasters ecological destruction.
Despite the poor and developing countries receiving the erroneous impacts of neo liberalism economic policies such debt repayment in large amount, environment disaster, social conflicts, abuse of human rights, impoverishment and natural resources exploitation, they have to bear with direct impacts of global warming caused by carbon dioxide emission contribution of gluttonous economy growth model of developed industry countries.
WALHI documentation (2007) indicated that developed countries up to now are the biggest producer of green house emission in the world. These industrial activities and consumption patterns, according to UN become producers of carbon dioxide in amount of 36.1 percent followed by Russia 17.4%, Japan 8.5%, Germany 7.4%, England 4.2%, Canada 3.3%, Italy 3.1%, Poland 3%, France 2.7%, and Australia 2.1%.
Hence, the major complication of environment and climate destruction which had already occurred in last few decades need to be addressed as consequences of neo liberalism development model and gluttonous system of capitalism production. Since colonial era, the third world countries have become suction and exploitation sources to fulfill colonial industry countries needs in serving prodigal and insatiable life style of their countries.
Since long time ago, poor and developing countries in the third world had paid too much of carbon emission impact contributed by developed industry countries. Exploiting natural resources and paying installment of the debt from proscribed and illegal projects, which destroy global climate, are more than enough to prosecute debt cancellation from developed industry countries.
Debt cancellation is compensation from “carbon debt” as long as produced from unfair neo liberalism development. Thus, the third world countries like Indonesia can independently determine the priority of development policies which can rectify the structure of economy injustice that contributed climate destruction. The developed industry countries can also involve in supporting justice and sustainable development by stopping wholly new debt schemes conformation which worsen people life in the third world countries.
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