Kevin Danaher, founder of Global Exchange explains the politics of debt relief (mp3, 50 sec)
Finance ministers of the world’s wealthiest nations agreed to wipe out “$40 billion in debt owed by 18 of the world’s poorest countries as part of a major assault on global poverty.” G8 nations (Britain, the United States, Canada, France, Italy, Germany, Japan and Russia) will replenish the reserves of the World Bank, the African Development Bank and the International Monetary Fund in order to relieve debtor nations of $15.6 billion in payments on the $40 billion over the next 10 years.
“The 18 countries that would qualify immediately for debt relief have already been approved under the World Bank’s Heavily Indebted Poor Country Initiative, in which they commit to good governance, adhering to an IMF-endorsed financial plan and rooting out corruption.”
Danaher discusses the “structural reforms” countries have to adopt (mp3, 2m-57s)
Critics claim that relief “amounted only to about $1.5 billion in relief per year for the eligible countries. Western experts believe an extra $50 billion a year is needed by African nations to overcome a legacy of poverty, political instability, corruption and disease.”
Danaher details his strategy for greater debt relief. (mp3, 3m-30s)
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