The largest hurdle to economic recovery in Africa today is the overwhelming debt return. In many African countries, including Morocco, a very large portion of the budget goes toward paying these huge and everlasting debts. These are amount of money that could otherwise go to health care, education, housing and others. while Common Sense says if you borrow money you have to repay it, Is it fair to ask these western countries to erase these debts today? My answer is YES, and for one main reason: I believe these banks and countries knew when they were flooding these poor countries with debts, that they were dealing with corrupt regimes who did nothing to promote any economic or social programs for their people, but redirected these money to their Suiss banks. Is it right to burden Africa with these debts made by greedy bankers and corrupt regimes?
G8 debt deal given cautious welcome The G8 countries' agreement to cancel the debts of 18 of the world's poorest countries has been hailed as a positive but modest step toward tackling global poverty.
The deal has been approved overnight by the finance ministers of the G8 nations and will first benefit 14 African and four Latin American countries.
About $US40 billion in debts will be cancelled and more countries may also be offered the same deal in time.
Among the recipients, Ethiopia has praised the deal but hopes no strings are attached.
Rwanda has promised that the money saved would go towards private sector investments, and Uganda welcomes it as a helpful, albeit long overdue decision.
Extension calls
Aid groups and activists have also welcomed the move.
However, they are calling for extending debt cancellation to dozens more poor countries as well as sharply increasing development aid and ensuring poor countries get fair terms for trade with the rest of the world.
"Tomorrow 280 million 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 and their countries for so long," Bob Geldof, the Irish rocker-turned-activist, said.
But Geldof says he would keep up the pressure for greater efforts to reduce poverty.
He is currently organising Live8 concerts to be held in the capitals of the richest countries in the run-up to the G8 summit in Scotland on July 6-8.
"We must be clear that this is the beginning and the end will not be achieved until we have the complete package demanded by the Commission for Africa of debt cancellation, doubling of aid, and trade justice," Geldof said.
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