G8 reliefs poor countries of debt

[mcadam]

The G8 (no, not a utopian mac - but the 8 richest countries), has decided to relief the worlds 11 poorest countries from their entire debts to the worldbank and others. All in all 40bn $.

BBC

This is imo the best news concerning the general state of the world and world peace since the breakdown of the soviet union. Truly a remarkable decision

A

 

[Xtremehkr]

Tony Blair seems to be working on his redemption. I am glad that he came over here to convince Bush of the need to relieve these nations of debt that they cannot even make the interest payments on.

It should spur economic growth as well, as the money is used to purchase goods and services instead.

 

[combatcolin]

While i do not agree with wiping out debt, this breeds poor financial skills, i do belive something should be done about the intrest that is paid.

Moving to intrest free loans is fair and just.

 

[Jaffa Cake]

On the face of it, a positive piece of news. But let's just hope that the nations who will benefit don't squander the opportunity. Many of these countries have problems with corruption – money lining the pockets of the privileged few rather than going where it's really needed.

Debt relief has to go hand in hand with good governance and fair trade practices to help make these countries economically stable – otherwise, they may well be back to square one in a generation or two.

 

[faustfire]

Good news!!!

While i do not agree with wiping out debt, this breeds poor financial skills, i do belive something should be done about the intrest that is paid.

Moving to intrest free loans is fair and just.

Many of these indepted countries were loaned money by the world bank and other such entities at times when the were under control of corrupt and violent dictators. Should we really make these people pay back the money that was used to oppress them? This is not a case of poor credit card management, but of poor decisions made by those who loaned the money in the first place. I was pleasantly surprised by this news, this will do more for these countries than we in the industrialized nations can imagine.

 

[aussiemac86]

excellent news

Possibly there is hope for the human race after all.

I agree with Jaffa Cake. Though there is a lot of corruption in many of these countries, maybe some international monitoring by the world bank of spending of money would be ideal, if it looks like a small few are spending it all whilst the people continue to live in poverty perhaps they should impose sanctions of some description.

Whilst that is far from an ideal solution lets hope something has been worked out so that the majority of the people in these countries see an increased standard of living.

Combatcolin......as has been said, the people who are paying the price of these debts did not see the money that was originally borrowed, they should not be punished.

 

[dmw007]

Good news to me...now if only Bush could do something about the United States national debt.

 

[mymemory]

From Venezuela

I didn't find the list of the countries that are now debt free.

In the case of Venezuela we have paid about 150 times the original loan just in interest and that was the idea back then.

Many politicians asked for money and they invested in their own ways and that was happening for many years until the time to pay back came and the currency got devaluated big time. We al remember when one dolar was Bs. 4.30, now is Bs. 2100.

But the amounts of the debs are crazy and is such complicated issue. The politicians of the 3rd world were so selfish with all that money.

 

[Peterkro]

While in general this is a small step in the right direction the small print in all this is very dodgy,the countries who have been accepted have had to do all sorts of stupid things e.g. privatise water and other infrastructure thereby handing huge amounts of cash to western capitalists.The World Bank et al are a front for the free market nutters.

 

[Abstract]

I agree with Jaffa Cake. Though there is a lot of corruption in many of these countries, maybe some international monitoring by the world bank of spending of money would be ideal, if it looks like a small few are spending it all whilst the people continue to live in poverty perhaps they should impose sanctions of some description.

Yeah, but this debt relief is only being given to governments that have proven their worth. I'm not saying that corruption doesn't exist in these governments, but its better than in the countries who didn't get it, and since not everyone got this benefit, they're obviously looking into it.

 

[combatcolin]

Most of the counties that are benefiting have very "dodgy" goverments to say the least.

Corruption is endemic.

A side effect of the curruption is that important jobs go to people who curry favour with the head of state.

This in turn leads to ineffient and incompetent ministers in office.

Which leads to bad decsions and a lack of forward action.

And this circle has ben going on for decades.

Look at Zimbabue for example, a country so rich and powerful it was almost a Reginal Superpower the same as South Africa and Isreal.

(Forgive my spelling)

Now look at it, on its knees.

There needs to be very, very strong safeguards to make sure this HUGE amount of money that these countries will find in effect be receiving does not end up in Swiss bank accounts of the currupt few.