[Pharm-policy] NYTimes Editorial: Expanding Debt Relief
Paul Davis
pdavis@CritPath.Org
Mon, 02 Oct 2000 11:21:26 -0500
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Editorial Board reports on US holding debt relief proposals
hostage - in spite of limited scope of current proposals.
Expanding Debt Relief
http://www.nytimes.com/2000/10/01/opinion/01SUN3.html
October 1, 2000
Debt relief for the world's poorest nations is an idea with moral
urgency and strong bipartisan support. People in these countries,
most of which are in Africa, suffer needlessly because their
governments use 40 percent or more of their national budgets for
interest on a foreign debt that will never be repaid. This leaves
little for pressing social needs, including improved health care,
and better schools and universities. The Clinton administration and
most members of Congress back a program to forgive the debts of
impoverished nations that can show they have sensible economic
policies and will use the money to help their poor citizens. Uganda
has used its debt relief to reduce school fees. Mozambique is
planning to stock health clinics with badly needed medicines.
But the very popularity of debt relief is allowing a few in
Congress to hold the money hostage, using it as a bargaining chip
to win financing for other programs. The administration asked for
$435 million, which would write down the debt countries owe the
United States and contribute to retiring debt held by regional
development banks. The House has approved only $225 million, and
the Senate an embarrassing $75 million. Congressional assent is
also needed for a plan to let the International Monetary Fund
retire debts it holds by using investment income from the sale of
its gold reserves. The plan is being blocked by Senator Phil Gramm
of Texas.
The debt-relief package is a bargain for the United States, which
will have to pay only 4 percent of the wealthy nations' total, or
$920 million over four years. Each dollar Washington contributes,
moreover, produces $20 in debt relief. If Washington does not meet
its commitment, the whole package may unravel, as other wealthy
nations will be reluctant to act. Debt relief works for example,
primary school attendance nearly doubled in Uganda after the
country dropped its school fees. While relief has been too limited
so far, the program is scheduled to reach 10 more African and Latin
American nations this year. More countries may qualify in the years
ahead. Congress should not block or shortchange this vital help for
the world's poorest.
The New York Times on the Web
http://www.nytimes.com
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Subject: NYTimes.com Article: Expanding Debt Relief
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Expanding Debt Relief
http://www.nytimes.com/2000/10/01/opinion/01SUN3.html
October 1, 2000
Debt relief for the world's poorest nations is an idea with moral
urgency and strong bipartisan support. People in these countries,
most of which are in Africa, suffer needlessly because their
governments use 40 percent or more of their national budgets for
interest on a foreign debt that will never be repaid. This leaves
little for pressing social needs, including improved health care,
and better schools and universities. The Clinton administration and
most members of Congress back a program to forgive the debts of
impoverished nations that can show they have sensible economic
policies and will use the money to help their poor citizens. Uganda
has used its debt relief to reduce school fees. Mozambique is
planning to stock health clinics with badly needed medicines.
But the very popularity of debt relief is allowing a few in
Congress to hold the money hostage, using it as a bargaining chip
to win financing for other programs. The administration asked for
$435 million, which would write down the debt countries owe the
United States and contribute to retiring debt held by regional
development banks. The House has approved only $225 million, and
the Senate an embarrassing $75 million. Congressional assent is
also needed for a plan to let the International Monetary Fund
retire debts it holds by using investment income from the sale of
its gold reserves. The plan is being blocked by Senator Phil Gramm
of Texas.
The debt-relief package is a bargain for the United States, which
will have to pay only 4 percent of the wealthy nations' total, or
$920 million over four years. Each dollar Washington contributes,
moreover, produces $20 in debt relief. If Washington does not meet
its commitment, the whole package may unravel, as other wealthy
nations will be reluctant to act. Debt relief works for example,
primary school attendance nearly doubled in Uganda after the
country dropped its school fees. While relief has been too limited
so far, the program is scheduled to reach 10 more African and Latin
American nations this year. More countries may qualify in the years
ahead. Congress should not block or shortchange this vital help for
the world's poorest.
The New York Times on the Web
http://www.nytimes.com
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