Shemitah as a Model for Debt Relief

 

From the American Jewish World Service Education Module on, "Addressing Global Poverty: International Aid, Debt Relief, and Trade Justice"

Debt Relief:

In 2004, the world's poorest nations paid more than $2 billion in debt services to international creditors. Even as they struggle to combat the AIDS pandemic and provide education for every child, many countries are forced to spend considerably more on debt services as they do on health care and education combined. Debt-relief initiatives have proven successful and are effective way to provide poor countries with a practical solution to meet the health and education needs of their people.

Shemitah as a Model for Debt Relief

Deuteronomy 15: 1-2

Translation Original
Every seventh year you shall practice remission of debts. This shall be the nature of the remission: every creditor shall remit the due that he claims from his fellow; he shall not dun his fellow or kinsman, for the remission proclaimed is of the Lord.
מִקֵּץ שֶׁבַע שָׁנִים תַּעֲשֶׂה שְׁמִטָּה: וְזֶה דְּבַר הַשְּׁמִטָּה שָׁמוֹט כָּל בַּעַל מַשֵּׁה יָדוֹ אֲשֶׁר יַשֶּׁה בְּרֵעֵהוּ לֹא יִגֹּשׂ אֶת רֵעֵהוּ וְאֶת אָחִיו כִּי קָרָא שְׁמִטָּה לַיקֹוָק:
 

Deuteronomy 15: 7-11

Translation Original
If, however, there is a needy person among you, one of your kinsmen in any of your settlements in the land that the Lord your God is giving you, do not harden your heart and shut your hand against your needy kinsman. Rather, you must open your hand and lend him sufficient for whatever he needs. Beware lest you harbor the base thought, "The seventh year, the year of remission, is approaching," so that you are mean to your needy kinsman and give him nothing. He will cry out ot the Lord against you, and you will incur no guilt. Give to him readily and have no regrets when you do so, for in return the Lord your God will bless you in all your efforts and in all your undertakings. [JPS]
כִּי יִהְיֶה בְךָ אֶבְיוֹן מֵאַחַד אַחֶיךָ בְּאַחַד שְׁעָרֶיךָ בְּאַרְצְךָ אֲשֶׁר יְקֹוָק אֱלֹהֶיךָ נֹתֵן לָךְ לֹא תְאַמֵּץ אֶת לְבָבְךָ וְלֹא תִקְפֹּץ אֶת יָדְךָ מֵאָחִיךָ הָאֶבְיוֹן: כִּי פָתֹחַ תִּפְתַּח אֶת יָדְךָ לוֹ וְהַעֲבֵט תַּעֲבִיטֶנּוּ דֵּי מַחְסֹרוֹ אֲשֶׁר יֶחְסַר לוֹ: הִשָּׁמֶר לְךָ פֶּן יִהְיֶה דָבָר עִם לְבָבְךָ בְלִיַּעַל לֵאמֹר קָרְבָה שְׁנַת הַשֶּׁבַע שְׁנַת הַשְּׁמִטָּה וְרָעָה עֵינְךָ בְּאָחִיךָ הָאֶבְיוֹן וְלֹא תִתֵּן לוֹ וְקָרָא עָלֶיךָ אֶל יְקֹוָק וְהָיָה בְךָ חֵטְא: נָתוֹן תִּתֵּן לוֹ וְלֹא יֵרַע לְבָבְךָ בְּתִתְּךָ לוֹ כִּי בִּגְלַל הַדָּבָר הַזֶּה יְבָרֶכְךָ יְקֹוָק אֱלֹהֶיךָ בְּכָל מַעֲשֶׂךָ וּבְכֹל מִשְׁלַח יָדֶךָ: (יא) כִּי לֹא יֶחְדַּל אֶבְיוֹן מִקֶּרֶב הָאָרֶץ עַל כֵּן אָנֹכִי מְצַוְּךָ לֵאמֹר פָּתֹחַ תִּפְתַּח אֶת יָדְךָ לְאָחִיךָ לַעֲנִיֶּךָ וּלְאֶבְיֹנְךָ בְּאַרְצֶךָ: ס

How does this serve as a model for debt relief? Was this effective? Should this be re-introduced into our contemporary system of debt? Are there similar contemporary models?

 


Solving the Problem of Shemitah

Babylonian Talmud, Gittin 36a

Translation Original
Hillel instituted the Prozbul. We have learnt elsewhere: A prozbul prevents the remission of debts [in the Sabbatical year]. This is one of the regulations made by Hillel the Elder. For he saw that people were unwilling to lend money to one another and disregarded the precept laid down in the Torah, Beware that there be not a base thought in your heart saying, etc. He therefore decided to institute the prosbul. The text of the prozbul is as follows: “I hand over to you, So-and-so, the judges in such-and-such a place, [my bonds], so that I may be able to recover any money owing to me from So-and-so at any time I shall desire”; and the prosbul was to be signed by the judges or witnesses. [AJWS translation]
הלל התקין פרוסבול וכו'. תנן התם: פרוסבול אינו משמט, זה אחד מן הדברים שהתקין הלל הזקן, שראה את העם שנמנעו מלהלוות זה את זה ועברו על מה שכתוב בתורה (דברים ט"ו) השמר לך פן יהיה דבר עם לבבך בליעל וגו', עמד והתקין פרוסבול. וזה הוא גופו של פרוסבול: מוסרני לכם פלוני דיינין שבמקום פלוני, שכל חוב שיש לי אצל פלוני שאגבנו כל זמן שארצה, והדיינים חותמים למטה או העדים.

In what way does the prozbul help make a society more just? In what ways does it create challenges?