With the leaders of the world’s seven wealthiest countries preparing to meet, the issue of debt relief for the poorest nations has again reared its head. While the members of the G8 have reached a tentative deal for providing partial debt relief, many of the details have yet to be discussed. However, there is little doubt that this gesture by the developed world will have an immediate impact on the ability of the recipient nations to meet the needs of their populations.
In practice, debt relief seems to be a simple idea with obvious results. The negotiations between the main donor nations and the major lending institutions such as the World Bank and IMF have revealed a myriad of issues and concerns that must be dealt with before the plan can be implemented.
The donor nations are wary of being asked to increase their contributions to these organizations, while the lenders are concerned that forgiving outstanding loans will reduce their ability to lend to struggling governments in the future. What is the best approach to address the unsustainable debt levels of many of the world’s nations, while maintaining the ability of the developed world and international NGOs to respond to emerging needs in the developing world?
This Week’s Articles
- The End of Poverty
- Martin Wolf: Ending Africa’s Poverty Trap
- The Challenge of International Debt Relief
- William Easterly: The white band’s burden
For more informaiton, please contact Kristin Millikan at 312.422.5580.