gerardo-mada-english

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6/19/2005

Remission of debts for poorest countries: historical success without future prospect?

The G8 states agreed on the decree of the debts of the 18 poorest countries. First this appears as a historical success. The intention of the decree is connected with good government guidance (democracy, fight against corruption). Thus a large clearance remains open for the declaration of intent. Likewise this explanation must be still confirmed by the respective heads of the governments of the G8 states. But does a remission of debts alone helps to prevent against the obligation of new debt admission of the appropriate countries?. Aren't these countries forced to make new debts to improve their export possibilities to receive capital again for necessary new investments? Does the remission really improves the situation of the people?