For those countries that import oil from abroad, higher oil prices
are literally lethal. According to figures compiled by the Center
for American Progress, the cost of Tanzania's oil imports rose from
roughly $190 million in 2002 to about $480 million in 2006,
representing an additional $290 million in payments each year for
approximately the same amount of oil. Conversely, debt cancellation
is expected to free up roughly $140 million in Tanzania in
2006, less than half of the additional amount that the country is
paying for oil imports each year.
Similar trends on the impact of rising oil prices can be detected in
a variety of countries around the world. Research conducted by the
Mali Folkecenter estimates that Mali has gone from spending $100
million per year on oil imports in 1998 to almost $400 million in
2005. This increase dwarfs the $28 million in debt relief it will
see in 2006 from last year’s G-8 commitment on debt cancellation.
This money was supposed to be used for healthcare and clean water,
not oil.
How will these countries pay for their increasing oil bills? Deeper
into debt they go.
http://www.tompaine.com/print/the_poverty_of_energy_security.php
