Press and NGO reactions

NGO and press reactions
Quotes
NGO quotes
Charles Mutasa, Acting Director of the African Network on Debt and Development: "if
we say half a loaf is better than nothing then it seems there is some progress. But
half-baked solutions have their own limitations. We continue to question how
democratic is it to pick just post completion point HIPCs."
Charles Mutasa, Acting Director of the African Network on Debt and
Development:"the agreement does not address the real global power imbalances. We
reiterate our position that the debt crisis needs a lasting solution in which all
stakeholders-Debtors and creditors have a say".
German Jubilee campaign group Erlassjahr.de called the plan "a weak compromise".
Demba Moussa Dembele, of the Forum for African Alternatives, Senegal, recalled
that the hype surrounding previous G-7 announcements has not been borne out by
the results on the ground. "We've heard this so many times.”
Neil Watkins, of Jubilee USA said: "the G-8 proposal for 100% debt cancellation for
some poor nations to the IMF and other international lenders is an important first
step, but the deal must be expanded to include all impoverished countries. Debt
cancellation must come without subjecting these countries to devastating economic
conditions".
Henry Northover, Policy Analyst, CAFOD: "If this is implemented this is a good and
significant first step. We've seen debt relief work and more is needed. We must see
an end to the welfarist approach to Africa. Debt is only part of the solution however.
This must also mean a doubling of aid to $50 billion a year and make it more
effective so it reaches those who need it most. They must also deliver on trade
justice that sees an end to forced liberalisation and harmful export subsidies. We
need to build the political pressure for the heads of government to deliver next
month. CAFOD want to see the sort of political will that was shown to Iraq on debt
relief last year. In one day they received more in debt relief than the whole of Africa
has in the last ten years."
Steve Tibbett, Spokesman, Make Poverty History Campaign "It's a good deal but not
a great deal. We are pleased with the principle of 100 percent cancellation. But we
are worried that this locks out some countries, like Sri Lanka and Vietnam. ...it also
locks in some of the conditions that have failed some countries in the past."
Stephen Rand, Co-chairman of the Jubilee Debt Campaign, said: "This deal is an
important step forward, but it is not the giant leap on debt that is needed."
"This deal still leaves major issues on debt unresolved - the damaging economic
policy conditions attached to debt relief, the many indebted countries not on the list,
debts not covered by the deal.”
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Official reactions
Farouk Lawan, Chairman of Nigerian House of Representatives' Finance Committee:
"It is a good development, it is a vindication of the efforts of the executive and the
legislature the last few years. Nigeria's debt is certainly unsustainable and the sooner
we made this known to our creditors, the better. Also, the sooner our creditors
appreciate that Nigeria's economy cannot sustain interest payments, especially
against the backdrop of a huge level of poverty among the populace, the better. "The
G8 position may appear to fall short of what the National Assembly is canvassing for,
which is a total and unconditional write-off of Nigeria's debt. It is a good starting
point, especially as it draws attention to the need for Nigeria to be accorded debt
relief."
In Kenya, Chairman of Parliamentary House Finance committee Mutahi Kagwe said
"We have always paid our debts in spite of the economic hardships," he said. The
principle under which HIPC was created amounts to "miscarriage of justice".
Assistant Minister for Trade Petkay Miriti described the situation as "very unfortunate
indeed. It will be difficult for us because our neighbours will be investing that money
in services and mobilizing trade when we are servicing debts".
"It brings us closer to our common goal to end the scandal that every day 30,000
children die of curable diseases”, said German Development Minister Wieczorek-Zeul.
Reactions by High Profile Personalities
Joseph Stiglitz, a former chief economist at the World Bank, said, "This is a
recognition at the very minimum that the debt burden has impeded economic growth
- has strangled many of these countries - and I would like to believe it is a
recognition by the advanced industrial nations of a degree of culpability for much of
the overall debt."
Mr Geldof said: “On Sunday 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.” But he cautioned: “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.”
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Press/Media
South press
G8 Deal Slashes African Debt
Finance Ministers from the G8 group of most industrialized countries, meeting in
London at the weekend, went further than many had thought possible by agreeing to
cancel in full the debt owed by some of the world's poorest nations to the World
Bank, the IMF and the African Development Bank, without damaging the two Banks'
ability to grant further loans.
The countries that will benefit from this debt write-off are those which have already
reached the "completion point" in the HIPC (Heavily Indebted Poor Countries) relief
initiative, which so far has mostly covered bilateral debt.
http://allafrica.com/stories/200506130629.html
Shock as Kenya denied debt relief
Kenya’s exclusion from a multi-billion debt write-off by the World Bank and IMF for
Africa’s poor countries was received with shock and consternation yesterday.
Finance ministers from the G8 countries did not enlist Kenya among 18 poor
countries whose debts will be cancelled by the three multi-lateral donors.
Disappointment that Kenya would still have to part with Sh78 billion a year servicing
debts owed to multi-lateral and bilateral lenders was compounded by the fact that it
is the only country in East Africa that failed to clinch the relief deal.
http://www.eastandard.net/hm_news/news.php?articleid=22712
G8 Debt Agreement to Benefit 23 African Countries; Separate Deal for
Nigeria Muted
Britain put the price tag for writing off the debts of the 18 eligible countries at $40
billion, plus an additional $11 billion for the soon-to-be eligible nine. Aid groups and
debt relief proponents say 62 countries need total debt forgiveness if they are to
meet the Millennium Development Goals that were adopted by the United Nations in
2000 and include cutting poverty and disease in half by 2015.
http://allafrica.com/stories/200506120016.html
Finance Minister Praises G8
The Minister of Finance says Ghana’s inclusion in a G-8 debt relief package to 18
poor countries is the dividend paid to the nation for practicing democracy.
Speaking to JOY NEWS, Finance minister, Kwadwo Baah Wiredu says the debt relief
is a direct response to the democratic practices in the country over the years.
The debt package effectively writes off debts owed to three out of about nine
multilateral organizations Ghana deals with.
http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=83492
North Press
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Deal praised but more help wanted
Owen Bowcott
Monday June 13, 2005
The Guardian
The delivery of €22bn worth of debt cancellation to the world's poorest countries was
praised by aid agencies and African governments yesterday - as they urged on the
G8 industrialised nations to deliver a new deal on fair trade.
Amid applause for the agreement signed in London at the weekend, however, there
were reservations about how much new money had been pledged and fears the cash
released might not all be invested wisely or benefit the most needy.
http://www.guardian.co.uk/guardianpolitics/story/0,,1505111,00.html
Debt deal a fraction of Africa's real needs
By Gary Duncan
The €22bn relief deal has been widely welcomed but much more is needed to fulfil
British hopes
Crucially, the amount which the affected countries will save in debt repayments
which can now be used for food, education and health is a relatively small annual
sum of about $1.5 billion. This is a fraction of the $50 billion a year needed to double
annual aid flows, which Britain says is essential to bring relief to Africa.
The cost to Britain’s taxpayers of the weekend deal is an average of $100 million
(€55 million) a year over ten years: up to $960 million over the period to 2015. The
US will pay up to $175 million a year. Germany’s commitment in the first three years
comes to about $50 million a year and France’s some $33 million.
http://www.timesonline.co.uk/printFriendly/0,,1-3-1651936-3,00.html
Caution over G8 debt plan for poor countries
By Chris Giles and Friederike Tiesenhausen Cave
Published: June 12 2005 12:22 | Last updated: June 12 2005 18:31
While the Group of Eight finance ministers were hailing a "historic breakthrough" at
the weekend after they agreed to cancel the debts of 18 poor but well-governed
countries, doubts were already being raised about how great an impact the deal
would have.
http://news.ft.com/cms/s/f8658a5a-dac5-11d9-b1a5-00000e2511c8.html
Finance Chiefs Cancel Debt of 18 Nations
By ALAN COWELL
Published: June 12, 2005
The world’s wealthiest nations formally agreed to cancel at least $40 billion worth of
debt owed by the world's poorest nations.
http://www.nytimes.com/auth/login?URI=http://www.nytimes.com/2005/06/12/inte
rnational/12debt.html&OP=3f0edd79/NxQ5CANTYU8qYYt)N)ddnNd}N.)NQ2B|tQ5Cq|
StQ2BY|SQ3FN.)TQ5CAtQ27rtiQ3F
The limits of the debt deal
By Steve Schifferes
The deal to relieve 100% of poor country debts is historic - but it only sets the scene
for a much bigger battle at Gleneagles over trade and aid.
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UK Chancellor Gordon Brown was suitably enthusiastic about the deal reached with
the finance ministers of the world's richest countries.
"We are presenting the most comprehensive statement that finance ministers have
ever made on the issues of debt, development, health and poverty," he said as the
deal was announced.
And it is a historic breakthrough - or at least the final resolution of part of the debt
issue that has proved contentious for almost a decade.
http://news.bbc.co.uk/2/hi/business/4084072.stm
Group of Eight Forgives More Than $40 Billion
By Paul Blustein
Washington Post Staff Writer
Saturday, June 11, 2005; 6:47 PM
The world's wealthiest nations agreed today to cancel more than $40 billion in debts
that some of the world's poorest nations owe to international lenders -- a move
inspired by the belief that full debt forgiveness is necessary to give those countries a
chance to escape the trap of hunger, disease and economic stagnation.
The agreement, struck at a meeting in London of finance ministers from the Group of
Eight major industrial nations, is the most significant debt-relief scheme yet for poor
countries because it cancels the debts that the eligible countries owe to the World
Bank, International Monetary Fund and other multilateral lenders such as the African
Development Bank.
Previous plans offering partial relief have led to disappointment and criticism from
aid activists, who said many poor countries are forced to spend more on debt service
-- paying principal and interest on international loans -- than on health and
education.
Under the agreement, 18 countries would receive immediate forgiveness on more
than $40 billion that they owe in coming years, a combined savings for those
countries estimated at $1.5 billion a year.
http://www.washingtonpost.com/wpdyn/content/article/2005/06/11/AR2005061100561.html
Dix-huit pays parmi les plus d€munis de la plan•te devraient b€n€ficier
d'une annulation de leur dette multilat€rale, soit 40 milliards de dollars.
Le G8 efface des ardoises
Par Armelle THORAVAL
lundi 13 juin 2005 (Liberation - 06:00)
Londres de notre correspondante
Gordon Brown a un certain talent de jongleur. Une qualit‚ qui a permis au ministre
des Finances britannique de boucler, samedi ƒ Londres, un sommet du G8 Finances
qualifi‚ d'„historique… sur la dette des pays les plus pauvres. L'accord obtenu apr†s
des discussions tr†s serr‚es, notamment entre les Etats-Unis et la Grande-Bretagne,
d'un c‡t‚, la France, l'Allemagne et le Japon, de l'autre, porte sur „une annulation de
100 % de la dette des pays pauvres tr†s endett‚s…. Ainsi, 40 milliards de dollars dus
par dix-huit pays (dont quinze africains) aux grands bailleurs de fonds, la Banque
mondiale (BM), le FMI et la Banque africaine de d‚veloppement (BAD), doivent ˆtre
effac‚s quasi imm‚diatement. Dans les dix-huit prochains mois, onze autres pays
b‚n‚ficieraient, eux aussi, d'un coup d'‚ponge de 11 milliards. Puis, ƒ condition
d'avoir satisfait aux exigences de la BM et du FMI, les quatre derniers de la classe
des 38 pays asphyxi‚s par le poids de leur dette... Soit, au total, 55 milliards de
dollars de dettes, r‚compensant d'abord les bons ‚l†ves, adeptes des „ajustements…
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‚conomiques.
http://www.liberation.fr/page.php?Article=303519
Un premier pas seulement
Annuler la dette ne suffit pas. Il faut repenser l'aide au d‚veloppement.
Par Christian LOSSON
lundi 13 juin 2005 (Liberation - 06:00)
Surench†re et superlatifs. Pour les pays du G8, c'est „historique… (selon
Washington). Pour les pays vis‚s tout de suite par l'annulation de la dette, „on dirait
un conte de f‚es… (dixit le ministre zambien des Finances). Pour de vieilles ic‡nes de
la lutte antipauvret‚, „280 millions d'Africains se r‚veilleront demain sans devoir le
moindre penny de ce fardeau de la dette… (Bob ‰ Live Aid ‰ Geldof). Des exc†s pour
saluer un accord qui ne constitue qu'une premi†re haie surmont‚e dans la course
contre la montre de la dette. Apr†s tout, seuls 35 milliards de dollars ont ‚t‚ ray‚s ƒ
ce jour apr†s la promesse d'en effacer 100 milliards, il y a six ans.
„Compassionnelle…. „Le deal est surtout le moyen pour les leaders du G8 de sauver
la face…, confie un responsable de l'ONG britannique Oxfam.
http://www.liberation.fr/page.php?Article=303521
Les ministres des finances du G8 sont parvenus ‚ un accord sur la dette des
pays pauvres
LEMONDE.FR | 11.06.05 | 15h20 • Mis ‚ jour le 11.06.05 | 16h16
Les ministres des finances du G8 sont parvenus, samedi 11 juin ‚ Londres, ‚ un
accord sur l'annulation de la dette des pays les plus pauvres.Cet accord a ƒtƒ
officiellement confirmƒ en dƒbut d'apr„s-midi par le ministre des finances
britannique, Gordon Brown, au cours d'une confƒrence de presse.
Les huit grandes puissances se sont entendues sur un "effacement" de dette pour 18
pays tr„s pauvres pour un montant de 40 milliards de dollars. Neuf autres pays
pourraient ƒgalement bƒnƒficier d'une annulation de dette dans les 12 ‚ 18
prochains mois, pour un montant de 11 milliards de dollars, a soulignƒ le chancelier
de l'Echiquier, h…te de cette rƒunion.
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