Blair and Bush Met, Deal On Africa

[Annie]

I am all in favor of helping Africa, I think what happened there regarding the carving up and occupation by European nations dealt an unprecedented destruction of civilizations. With that said, will the 'forgiving of debt' without a set process to remove regimes that are brutal as well as unresponsive to the people, change anything?

http://www.nytimes.com/2005/06/10/politics/10debt.html?pagewanted=1&th&emc=th

June 10, 2005
U.S. and Britain Agree on Relief for Poor Nations
By ELIZABETH BECKER and RICHARD W. STEVENSON

WASHINGTON, June 9 - The United States and Britain have reached an agreement on how the billions of dollars that the world's poorest nations owe to international lenders can be erased, removing the last impediment to an accord long sought by the richest nations, a senior official involved in the negotiations said Thursday.

Treasury Secretary John W. Snow and his British counterpart, Gordon Brown, the chancellor of the exchequer, will present their proposal to a meeting of the finance ministers of seven of the Group of 8 industrial nations on Friday in London, the official said.

The plan would free 18 countries, most of which are in Africa, from any obligation to repay the estimated $16.7 billion they owe the international lenders, said the official, who requested anonymity because a formal announcement of the agreement had not been made. The debts will be written off by the lenders in an effort to allow the debtor countries to start fresh, get their books in order and eventually be able to borrow again for economic development, health, education and social programs, rather than simply to repay existing loans.

[...]

...In theory, the deal would free the 18 countries from making $1 billion in interest payments each year to the World Bank, the I.M.F. and other international lenders like the African Development Bank. In practice, they had not been making the payments, leaving them mired in debt and unable to fully engage in the global economy.

Eventually the program can be extended to at least nine other countries with others sure to press for similar treatment.

The 18 countries eligible for debt relief are: Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tanzania, Uganda and Zambia.

Canceling the debt of third-world nations has been a rallying cry for activists for years, and Mr. Blair's government has been pressing for an agreement. Groups that had been seeking to build public pressure on aiding poor nations hailed the agreement, and used the occasion to seek even more aid to the third world.

"President Bush and Prime Minister Blair made great progress and Gordon Brown and John Snow agreed on an excellent proposal for debt cancellation for many of the poorest countries," said Jamie Drummond, of DATA, a lobbying group founded by Bono.

"It is no substitute for an overall plan on aid and trade at the G-8 summit, but this degree of cooperation should make a historic breakthrough more likely," Mr. Drummond said.

All of the countries eligible for debt relief have had to show that they have acted to improve governing, reduce corruption and pursue what the international lenders consider sound economic policies.

If the administration's position on the specifics of how to help the poorest nations is at odds with those its main allies, it agrees with them on the goal. Mr. Bush has pledged to channel more aid to developing nations that show they are working to establish stable, democratic governments with good economic policies.

On Monday, he is scheduled to meet at the White House with the leaders of five African countries that held elections last year. They are President Festus Mogae of Botswana, President John Kufour of Ghana, President Armando Guebuza of Mozambique, President Hifikepunye Pohamba of Namibia, and President Mamadou Tandja of Niger.

Mr. Bush has emphasized his view that free trade and private investment are more powerful tools for economic growth than government aid. Two of his senior aides are in Africa this week, studying health and economic development programs....