Ok here are the flaws in what has been proposed so far:
The biggest problem in Africa isn't debt, it isn't AIDs, it isn't even famine.
The biggest problem in Africa is corruption, lack of any true rule of law. While the situation isn't as bad in some of the more developed countries, it is terrible it the countries that actually need the help. You can cancel all the debt you want, send all the financial and food aid you can muster, provide all the medicine the world can provide and it won't help until something is done about he corrupt governments and dictators that are preventing all this aid from actually reaching the people who need it.
What needs to happen is that these countries need to be helped in ways that foster true rule by the people. They need to be supported in attempts to eliminate the corrupt regimes that oppress them. Until this is done we are just going to be pissing all this money away in to a black hole of corruption.
Issue Number 2
Here is the problem with canceling the debts of these countries. The G8 can cancel about $40 million, according to the World Bank and the IMF that still leaves about $230 million owed in external debt to private companies. And what about the other developing nations, especially in Latin America, globally external debt owed by developing nations totals about $2.4 trillion This cannot be wiped away without serious financial repercussions. Think about this for a moment if that debt is just wiped away do you think any bank or company in their right mind is going to risk any additional investment. Honestly would you risk you livelihood to loan money to someone who has already defaulted on all the previous loans made to them... not likely. We have to face the fact that if we cancel all of this debt it will very difficult for developing countries to continue to borrow the capital they need to continue development.
We do need to pressure our leaders for changes but we need to really think about and consider that the easy feel good answer may not be the best one. What I am asking is that these we need to think through as many of the consequences of our actions as possible.
And thats what I have to say....
2 comments:
i don't think you can say that the problem in africa is corruption. that sounds like stereotyping to me. true, there are countries where there is no government, or it is a corrupt government, and those countries shouldn't receive any aid b/c they will just make the situation worse.
however, there is an unequal playing field in africa. most of these countries have huge debts b/c of the west. we were so concerned about keeping them from becoming commies in the 60's/70's that we threw money at the problem...this money in return went into the pockets of dictators who basically screwed their country. now, these countries are left with debts that they can't pay back (nor should they imo).
so, they have billions of dollars in debt. they have a lack of education which is one of the main reasons that AIDS is so rapant, because people don't know the basics of protecting themselves, and thanks the enormous corporations they can't even compete in the world market with trade, let alone their own market.
i definitely agree that throwing money at the problem will not solve it. one of the things pete grieg talked about was that due to debt cancellation about a month ago, 3 times as many children will be able to go to school immediately. continuing to forgive debt will help and it is biblical (it's called jubilee).
but more is needed. a type of marshall plan would be exactly what is needed to help african nations develop. 'teach a man to fish' is what comes to mind when i think of this.
if the amount of money that has been spent in iraq was spent helping the continent of africa not get flushed down the toilet, then i truly believe you would see change and the world would be changed. it is far cheaper to make friends than to fight enemies. any ill-will toward america would be gone. in a sense it is the fiscally responsible thing to do. i've heard reports that are a potential 10 afghanistans in africa. do you want them 'knocking' on our door (or blowing up our stuff) 10-20 years from now.
It's a long road, but the G8 conference this week could be the first step towards actually changing a continent and saving lives. I pray that God is in that room guiding minds and decisions to do what is right. This could be humanity's greatest moment.
my two cents:
bono was on meet the press two weeks ago. one thing he talked about was the relationship between the relief being offered/ suggested and corruption. you might like to watch it. the proposed relief is designed to bypass many of the corrupt systems in different countries
i'm reading a book that talks some of the history behind corruption in the continent called, ‘the shackled continent”. it’s quite good. (i’m looking forward to a book from the economist americas bureau chief on corruption in our country soon.)
“We do need to pressure our leaders for changes but we need to really think about and consider that the easy feel good answer may not be the best one. What I am asking is that these we need to think through as many of the consequences of our actions as possible.”
i agree w/ this statement. it seems like what you’re inferring is we don’t want to band aid these problems. i think band aids can be condescending. i don’t know the answers- but i think that relieving debt is part of the solution. if it is to appease our conscience and allow us to continue w/ our trade policies (among other things i believe our government does to propagate some of the problems in africa) that isn’t enough.
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