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.
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