8 European Countries Write Off USD 40 B Debt for 18 African Countries

[lexico]

World's Richest Nations Write off USD 40 B of African Debts

World in Brief: 11 June 2005, Saturday.

Finance ministers from the Group of Eight industrialized nations agreed on Saturday to write off more than USD 40 B of African debts. British Finance Minister Gordon Brown said the deal would provide 100 percent write-offs "immediately" for 18 countries and that more countries would qualify for relief later. "This is the most comprehensive statement the finance ministers have ever made on debt and poverty," he told a news conference. "This is not a time for timidity, this is a time for boldness." The accord covered debts to international lending agencies such as the World Bank, African Development Bank and International Monetary Fund.

With the reduced load of having to deal with loans and interest, will this lead to less conflicts and more concerted efforts to develop the economy while maintaining peace ?

[CC1]

I don't really feel like this will help...it won't hurt, but it won't help either! Many of these countries were not paying any of this debt off anyway. I think it would have been more beneficial to help develop the economies of these companies first, then talk about writing off the debts.

[Mycernius]

I have to side with CC1 on this matter. It is all very well cancelling the debts of these countries, but will we cancel them in 10 years time when they are in debt again? The problem with some of these African nations is their governments are corrupt and will spend the money given for their people on themselves. The only way is to somehow get the money moving to the people and put into the economy and not into some corrupt president. How to do that is a big question that the Rich countries should really look into.

[lexico]

Thanks for the input, CC1, Mike. Let's hope they do a better job next time they have a chance to really help and demand change.

[Sensuikan San]

I have to side with CC1 on this matter. It is all very well cancelling the debts of these countries, but will we cancel them in 10 years time when they are in debt again? The problem with some of these African nations is their governments are corrupt and will spend the money given for their people on themselves. The only way is to somehow get the money moving to the people and put into the economy and not into some corrupt president. How to do that is a big question that the Rich countries should really look into.

I would also (hopefully without being too facetious) be most interested in watching the expenditure of some of these cash-strapped countries on military hardware...and from whom they obtain it ....

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[stupidumboy]

Debt forgiveness for developing countries itself is very good news for African nations .

However, There's no real free lunch everywhere.

Instead of G8 nations allowing debt forgiveness for these 18 African nations, This contraction include privatizing these 18 nations staple industries such as energy and water sectors (selling them to US and other foreign companies,imagine what if those industries are controled by foreign capitals and they raise the price of these service), dropping subsidies to farmers and other businesses who might compete with G8 nations' counterparts, and dropping trade barriers.

After all,its another helping project that the rich get richer, the poor get poorer while making it looks like richers are benefiting the poor side.

[lolife]

I dunno how realistic such a method would be, or really how to implement it, but they should've gotten some kind of deal instead, that some investments they made (anything but military investments really) should have the same value deducted from the debts also. Or in some way force investments into education and similar, if they really want the debt lowered/written off. Just writing it off is probably the worst thing you can do either way.