Why Debt Relief Has Failed

Paper Summary:

The paper argues that even with the overwhelming popularity of African debt relief among policymakers and the public, debt relief is a bad deal for the world's poor. The paper discusses the IMF's initiative and the G8's debt relief plan and shows how they are effectively making African economies choose between trade liberalization policies of the World Trade Organization (WTO) or insurmountable debt and economic collapse. The paper contends that instead of supporting independence and development, WTO mandates foster increased dependence and perpetual underdevelopment. The paper also notes that foreign aid sent to developing countries rarely reaches the people who need it since the real problem is not high debt burdens, but rather corrupt governments. The paper concludes that ultimately, debt relief will only help reduce debt burdens if government policies make a true shift away from redistributive politics and toward a focus on economic development.

From the Paper:

"The continent of Africa is filled with some of the poorest nations in the world. Desperate poverty and unimaginable debt levels are due in part to previous acts of corrupt governments, inability of leaders to properly handle money and spending, and simple bad economic planning. Weak economies, unwise spending, huge amounts of borrowing and mishandling of natural resources have all but crippled a large number of African nations. And finally economic shock, "poorly designed reform programs and the [shady] action of creditors have all played a decisive part in the debt crisis," (Raceandhistory.com)."

Sample of Sources Used:

• "Case for African Debt Write-Off. Raceandhistory.com, 3 Oct 2004. 29 Nov. 2006 <http://www.raceandhistory.com/selfnews/viewnews.cgi?newsid1096831449,30279,.shtml>
• Lotterman, Edward. "Africa ills rooted in history." Saint Paul Pioneer Press 6 July 2005: A2.
• Rowden, Rick. "A World of Debt. Why 'Debt Relief' Has Failed to liberate Poor Countries." The American Prospect Magazine Summer 2001. 29 Nov. 2006 <http://www.thirdworldtraveler.com/Reforming_System/Wordl_of_Debt.html>
• "World Bank: Full debt cancellation approved for some of the world's poorest countries." M2PressWire 24 April 2006. 29 Nov. 2006 <http://www.ebscohost.com/ehost/delivery?=16PU3288396945>

More papers on Why Debt Relief Has Failed:

• Research Paper # 91331 : "Domestic Implications of Debt Relief"
• Term Paper # 91576 : "Debt Relief: Helping or Hindering?"
• Term Paper # 91687 : "Debt Relief"

APA Citation:

MLA Citation: