G7 Launches Bid to Wipe Out Poor Nations' Debt

Reuters (via Yahoo) ^ | 2/5/05 | By Sumeet Desai and Gernot Helle

[Mr. Mojo]

Link to story

[ichabod1]

Why don't we here in the US just take care of those debts for them. After all, we have the lowest foreign aid to GDP ratio in the entire developed world.

[GSlob]

I would say it is a very bad idea: who would lent even one more penny to those money sinkholes in the future? Not that they are major participants in the world economy right now, but this would make them lepers.

[the invisib1e hand]

"not just small amounts now and again, here and there." The 86-year-old political prisoner-turned democracy champion was blunt. "Do not delay while poor people continue to suffer."

I demand that you erase my debts immediately!

[ichabod1]

What about the children?

[MisterRepublican]

I want some of this "debt relief", too.

[Myrddin]

Trolling again? Last time it was gun control. Now, you think we owe the world a free ride. Back to DU...please.

[ichabod1]

heh heh.

[Drew68]

Should any debt cancellation happen it needs to take place after the Swiss bank accounts from each of these nations' despotic regimes have been cleaned out and returned to the countries that made the loans.

There is no reason why these nations need to be crying about debt cancellation while they have "Presidents for Life" driving around in Maybachs and Bentleys to their dozens of gilded palaces.

[ichabod1]

I'm sorry, but when someone posts one of these incredibly ridiculous notions sometimes I can't help playing along for a while. And I hate using the sarcasm tag.

[Sunsong]

African countries need good governments. Once freedom and democracy comes to Arfica - so will prosperity.

When Mandella starts talking about freedom and democracy - I will listen.

[KarlInOhio]

Under his original plans, rich countries would have provided guarantees to raise money in the capital markets to double aid now

Will that be in 10,000 Swiss Franc bundles or should we use Credit Suisse's convenient direct deposit.

[GSlob]

If tender, should be well done, otherwise tenderized first. Seriously, the best thinkable thing that could happen there would be a wholesale abandonment of current corrupt and tribal social systems, and very serious capitalistic transculturation. Then the children will indeed grow up to better lives and better society. How long did it take South Korea to rise up? 20 years? Make it 40 - still time enough for today's children.

[drt1]

I agree - Icabod, I think you'll find a better audience for this drivel at DU.

To the point of this thread:

These 'Debts' are really loans that were given through direct and indirect means to countries. They were given with virtually no controls, no proper accounting and no real oversight to ensure they were used for the intended purposes. As a result a lot of the money enriched corrupt leaders and barely improved the living standards of these populations (Sound like Oil For Food all over again?). Forgiveness of these debts is probably required but won't solve the problem. There will still be needs that require assistance and the Industrialized World must be prepared to meet them - In a responsible and effective way.

IMO any forgiveness must be borne by those who irresponsibly advanced the funds in the first place and attempts to retrieve whatever remains and can be located must go hand in hand with such an effort.

[Pylot]

There is an excellent relatively new book on the market call Confessions of an Economic Hit Man. Here is the product description from Amazon:

Confessions of an Economic Hit Man reveals a game that, according to John Perkins, is "as old as Empire" but has taken on new and terrifying dimensions in an era of globalization. And Perkins should know. For many years he worked for an international consulting firm where his main job was to convince LDCs (less developed countries) around the world to accept multibillion-dollar loans for infrastructure projects and to see to it that most of this money ended up at Halliburton, Bechtel, Brown and Root, and other United States engineering and construction companies. This book, which many people warned Perkins not to write, is a blistering attack on a little-known phenomenon that has had dire consequences on both the victimized countries and the U.S.

So perhaps this is a veiled attempt to undo some of our current third world influence?

[drt1]

I have participated in a number of these 'Development' projects and these Loans don't just go to projects that benefit the big time construction companies. Try a lot of international management consulting groups. There is a lot of this sort of chicanery there as well.

[sdpatriot]

>>>British finance minister Gordon Brown, hosting G7 talks in London this weekend, failed to secure U.S. backing for his proposals to stump up an extra $50 billion a year for poor countries and to completely write off their debts. <<<


just makes me proud...

[King Prout]

*sniff?*

[cyborg]

This is just welfare on a grand scale. What these nations need liberals can't give them. Otherwise, where will Bono find reason for living?