21 May 1998 Edition
G8 debt double standard
Rather than being net recipients of aid the Third World is subsidising the first to the tune of four dollars paid to us for every dollar we give them
Third world countries owe the International Monetary Fund, the World Bank, OECD governments and commercial banks over $2.3 trillion. Servicing this debt cost their economies $250 billion in 1997. During the same year total aid to these underdeveloped and massively deprived states was $54 billion. Rather than being net recipients of aid the Third World is subsidising the first to the tune of four dollars paid to us for every dollar we give them.
Last week the leaders of the self appointed G8, the eight largest industrial economies in the world, decided not to address this glaring inequity.
All they could offer was an agreement in principle to extend debt relief to poorest of Third World states. In order to qualify for this so-called relief states have to show that they are on line to become proper market economies and are privatising state utilities while containing spending on vital public services such as health and education.
The net result of the G8 decision last weekend will be an increase in debt, deprivation and will ultimately precipitate economic disaster in Third World economies. I wonder if Wembley stadium will be free this summer for the global guilt salving charity concert.
Third world countries owe the International Monetary Fund, the World Bank, OECD governments and commercial banks over $2.3 trillion. Servicing this debt cost their economies $250 billion in 1997. During the same year total aid to these underdeveloped and massively deprived states was $54 billion. Rather than being net recipients of aid the Third World is subsidising the first to the tune of four dollars paid to us for every dollar we give them.
Last week the leaders of the self appointed G8, the eight largest industrial economies in the world, decided not to address this glaring inequity.
All they could offer was an agreement in principle to extend debt relief to poorest of Third World states. In order to qualify for this so-called relief states have to show that they are on line to become proper market economies and are privatising state utilities while containing spending on vital public services such as health and education.
The net result of the G8 decision last weekend will be an increase in debt, deprivation and will ultimately precipitate economic disaster in Third World economies. I wonder if Wembley stadium will be free this summer for the global guilt salving charity concert.