Unacceptable high debts make it impossible for many countries in the South to make important investments in health, education and the infrastructure. Very often the money from loans is not invested in the development of the countries, but goes into the pockets of dictators and corrupt regimes. In other cases projects are financed which do the population more harm than good. That is why the debt cancellation alliance "erlassjahr.de" calls for a more just procedure in debt cancellation. Kindernothilfe is a founding member and is active in the steering committee of the alliance.
Some of the very poor countries in the world have large debts. Governments have to pay so much interest that there is nothing left for urgent investments such as schools and hospitals. Without the necessary infrastructure, however, the economy cannot get going and hence the treasuries of these countries remain empty. Thus, debts prevent these countries from developing. For this reason Kindernothilfe supports action groups which campaign for debt cancellation and a fair way of settling debts.