http://www.theaustralian.news.com.au/common/story_page/0,5744,15595267%255E2703,00.html
Poor states freed of debt
June 13, 2005
SOME of the world's poorest countries have cautiously welcomed a deal struck by
the wealthiest nations to wipe out their debts.
The agreement, which US Treasury Secretary John Snow described as historic,
will immediately write off $US40billion ($52.6billion) of debt owed to the
World Bank, International Monetary Fund and African Development Bank by 18
"heavily indebted poor countries", 14 of them in Africa.
They are Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Honduras,
Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Senegal,
Tanzania, Uganda and Zambia.
The deal was agreed by finance ministers of the so-called "Group of 8" - the
US, Britain, Canada, France, Germany, Italy, Japan and Russia - meeting in
London ahead of a G8 leaders' summit in Gleneagles, Scotland, next month.
The 18 countries will save a combined $US1.5billion a year in debt repayments.
British Chancellor Gordon Brown, who acknowledged there were "moral hazard"
concerns about cancelling debt that could affect the future creditworthiness of
the countries concerned, said the G8 had agreed to put up extra money to meet
the interest payments these countries and others would have made to the World
Bank and the ADB over the next 10 years.
Britain will pay up to $US960million in interest over 10 years, with similar
amounts from Germany and France. The US will pay up to $US1.75billion.
Irish rock star and activist Bono welcomed the agreement but said much more
needed to be done.
"There's more to go to really make this an end to extreme poverty, of course,"
he said, speaking from the German city of Cologne where his band, U2, is on
tour.
"But this is one of the three asks that we have - debt (relief), a deal on an
increase in aid flows, and a deal with the unfair trading that goes on between
the richest countries and the poorest."
Bono has been a leading figure in a long-running campaign to lift billions of
dollars of debt off the backs of African nations, enabling them to use money
otherwise spent on interest payments to pay for schools and healthcare.
He acknowledged that debt relief could not be divorced from the issue of better
governance in Africa, saying: "Corruption is Africa's problem - it's actually
the most important problem. There's no point in cancelling the debts and ending
up redecorating presidential palaces."
Fellow singer Bob Geldof, who has organised the global Live 8 concerts to
highlight global poverty and put pressure on the G8 to act, said: "Tomorrow,
280million Africans will wake up for the first time in their lives without
owing you or me a penny from the burden of debt that has crippled them for so
long."
Ugandan Information Minister Nsaba Buturo said the decision was "commendable",
but added: "It's something that should have been done yesterday."
Ethiopian Finance Minister Sofian Ahmed said the cancellation of his country's
debt was "very encouraging" and ministers in Nicaragua and Zambia said they
would now be able to boost health and education programs.
Another nine poor countries are close to a deal to cancel their debt, while 11
others could do so in the coming years, bringing the total helped to 38 and the
amount of debt cancelled to a potential $US55billion.
"This is not a time for timidity but a time for boldness," Mr Brown said. "This
is not a time for second best."
The IMF and World Bank would maintain "strict supervision" to ensure the cash
freed went to health, education and alleviating poverty.
"We will take further steps to root out corruption," Mr Brown said.
Romilly Greenhill, of ActionAid, said: "The debt deal is very good news for the
people in the 18 countries that will immediately benefit, and who will now see
their debts written off. But it will do little to immediately help millions in
at least 40 other countries that also need 100per cent debt relief."
The Gleneagles summit next month is expected to back a limited version of an
international finance facility proposed by Mr Brown, in which money is raised
for poor countries on the security of their future aid flows.
Saturday's meeting also opened the way for the oil-producing countries, which
have benefited from record prices this year, to give more to the world's poor
countries.
A trust fund is to be set up aimed at helping countries affected by
fluctuations in commodity prices.
The debt-relief plan was adopted after Britain managed to secure US backing on
Friday, although disagreements remain over how much extra development aid poor
countries should get and how to fund it, as well as an opening-up of world
markets to poor economies.
The Sunday Times
[Non-text portions of this message have been removed]
***************************************************************************
Berdikusi dg Santun & Elegan, dg Semangat Persahabatan. Menuju Indonesia yg
Lebih Baik, in Commonality & Shared Destiny. www.ppi-india.org
***************************************************************************
__________________________________________________________________________
Mohon Perhatian:
1. Harap tdk. memposting/reply yg menyinggung SARA (kecuali sbg otokritik)
2. Pesan yg akan direply harap dihapus, kecuali yg akan dikomentari.
3. Lihat arsip sebelumnya, www.ppi-india.da.ru;
4. Satu email perhari: [EMAIL PROTECTED]
5. No-email/web only: [EMAIL PROTECTED]
6. kembali menerima email: [EMAIL PROTECTED]
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/ppiindia/
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
