G8 - Debt forgiveness for poorest nations

[lord of the mark]

I dont find a thread on this. Surprising.


Following the lead of Tony Blair, with the strong support of World Bank president Paul Wolfowitz, the G8 nations have agreed to a plan for the forgiveness of money owed to international lending agencies (World Bank, IMF, African Development Bank, etc) on the part of 18 of the worlds poorest countries. About $40 billion will be involved. To qualify nations must be both poor and must meet certain standards on economic and political reforms. Some other countries that are currently disqualified cause of lack of reforms, may become qualified. Meanwhile the 18 countries, 14 in Africa and 4 in Latin America, will no longer have to pay debt service on these loans, and will have more money for education, health care, etc.

This change
Tony Blair
Global poverty and hunger

[Pekka]

i don't know what's so amazing about it. It's not like the bozo tony will see any of the money. When you give to the most poor (a loan) in this world, you will never see that money again. So, that should be kept in mind when giving loans. Not saying loans shouldn't be given and forgiven, just saying you won't see the money returning.

[lord of the mark]

Originally posted by Pekka
i don't know what's so amazing about it. It's not like the bozo tony will see any of the money. When you give to the most poor (a loan) in this world, you will never see that money again. So, that should be kept in mind when giving loans. Not saying loans shouldn't be given and forgiven, just saying you won't see the money returning.

I think theres a growing consensus that help to the poorest countries should be in the form of aid, not loans. But that was not the case a couple of decades ago - when it was assumed that growth in the poorest countries would be faster.

[Kidlicious]

This is good. Poorer countries should have to pay back loans unless they either have control of their economies or their economies grow enough to pay back the loans without cuts to important things.

[pchang]

You can get more money in loans than you can get in aid. The problem was that the money spent did not result in economic gains in the target country. It was thought that economic reforms and such that were linked to the loans along with the development projects funded by the loans would change their economies for the better. It now appears that projects and economic reforms cannot improve a country's economy, but instead institutional reforms do.

[Zulu Elephant]

*feels pride at being a member of the Labour party*

[chequita guevara]

I could say a lot of things, but I won't. Just one. It's about time.

[Bosh]

Sounds good
But long long long overdue, some countries have been spending more on debt repayment than on education and health...

[dannubis]

and in the other news, how's wolfie doing at the head of the IMF ?

[Ramo]

Just curious, is Wolfy supportive of Bush or Blair's policy (Bush wants a debt amnesty, while Blair wants the rich countries to take over third world debt, so that these states can still take out loans)?

And props to Blair's Africa aid campaign (and I ask again why oh why can't we have him instead...).

[The Emperor Fabulous]

Originally posted by Ramo
And props to Blair's Africa aid campaign (and I ask again why oh why can't we have him instead...).

The teeth. Bush owns Blair in the dental department.

[Ramo]

Can't disagree with that.

[The Emperor Fabulous]

Though in the mental department...

[Whoha]

Originally posted by Pekka
i don't know what's so amazing about it. It's not like the bozo tony will see any of the money. When you give to the most poor (a loan) in this world, you will never see that money again. So, that should be kept in mind when giving loans. Not saying loans shouldn't be given and forgiven, just saying you won't see the money returning.

yes, we need to declare it all bad debt, forgive it, and not issue any more.

[C0ckney]

it's a great idea, lets just hope the money goes to people who actually need it.