News & Politics - G8 Drops the Debt

Lexis · 06-11-2005, 09:50 PM

Quote:

18 Poor Nations Relieved of Debt
G-8 agreement wipes out $40-billion owed by 14 African and four Latin countries. Nine more impoverished states may soon be eligible for help.

By John Daniszewski, Times Staff Writer

LONDON — Building on an accord between Britain and the United States, finance ministers of the world's wealthiest nations agreed Saturday to wipe out $40 billion in debt owed by 18 of the world's poorest countries as part of a major assault on global poverty.

The decision fulfilled a decades-old dream of anti-poverty activists, who have argued that payments on old loans drains the limited resources of the world's poorest nations, most of which are in Africa, keeping millions of people mired in poverty.

British Chancellor Gordon Brown, the major force in putting together the debt-relief package, announced that the poor nations' debt to the World Bank, the African Development Bank and the International Monetary Fund would be wiped out. Richer countries have agreed to replenish the reserves of the funding organizations as necessary.

Brown said the debtor nations would be relieved of $15.6 billion in payments on the $40 billion over the next 10 years, and the savings would be funneled to urgent needs in health, education and infrastructure development.

The decision qualifies 14 countries in Africa and four in Latin America for immediate debt forgiveness. An additional 20 countries could qualify over the next two years. Brown said the total size of the debt relief package could eventually reach $55 billion, believed to be the largest such initiative in history.

http://www.latimes.com/news/nationwo...home-headlines

I'm so proud of Brown - this is such a positive step but its only the first one. Lots more has to be done, especially in regard to making sure that poorer nations have a fair chance in trade and that developed nations don't let their own religious values affect the way they administer aid.

What do you guys think?

imajica · 06-12-2005, 05:05 PM

This is really fantastic news but you are right Lexis, steps now have to be taken that ensure these countries have a chance to create a sustainable income.

Drekkan · 06-12-2005, 09:26 PM

You know what has to be done? The US and Europe have to stop ridiculous protectionist and discriminatory practices. The first step should be the immediate end of all agricultural subsidies. That money would be best spent on vocational training and job education for farmers who can no longer compete - until they get brought into the modern economy. If you can't support your business then you should be in another one. If the US/Canda/EU can't compete on a level playing field, they should get out of that business (NB: this also applies to other subsidies, including, but not limited to, ethanol and Canadian subsidies to the Maritimes).


Fan Forum > General Discussion > News & Politics > G8 Drops the Debt