Tuesday, August 23, 2005
The G-8 Debt Relief Scam
One of the biggest scandals is how little wealthy governments give to poor nations. Few Americans have a clue how bad it is.
It just got worse
First, in recent evidence to the Treasury committee, Gordon Brown made the astonishing admission that the aid increase includes money put aside for debt relief. So the funds rich countries devote to writing off poor countries' debts will be counted as aid. Russia's increase in "aid" will consist entirely of write-offs. A third of France's aid budget consists of money for debt relief; much of this will be simply a book-keeping exercise worth nothing on the ground since many debts are not being serviced. The debt deal is not "in addition" to the aid increase, as Blair claimed, but part of it...Far from representing a "100%" debt write-off, the deal applies initially to only 18 countries, which will save just $1bn a year in debt-service payments. [for three years]...The deal also involves debts only to the International Monetary Fund, the World Bank and the African Development Bank, whereas many countries have debts to other organisations.
I hope there's enough space in the warmest seats in hell for people who pretend to give to the poor and then steal it back.
More blogs about politics.
