[stop-imf] "The Debt We Must Bear For Africa" by Bob Geldof (fwd)

[Robert Weissman]

The debt we must bear for Africa 

If the G7 can afford to cancel the debt of African nations, why can't
the IMF and World Bank?

Bob Geldof
Sunday April 29, 2001
The Observer 

This evening in Trafalgar Square Nelson Mandela will once again not
only represent his country but also that great moral courage rightly
applauded by the admiring crowds in London and around the world.
I visited him recently in his home in Johannesburg. I had come to
show him a report that proves what Drop the Debt, the continuation
of the hugely successful Jubilee 2000 campaign, has been saying
for a long time. The World Bank and the IMF can afford to cancel
100 per cent of the debts owed by the poorest countries, just as the
Group of Seven (G7) richest nations already have done.
The sombre reality of a continent he has done so much to change
and lead by example preoccupied and troubled him. He talked of his
profound sorrow at the Aids pandemic gripping the continent and
under which 20 per cent of the people of his own country suffer. He
spoke, without bitterness but with frustration, about the clear
linkage between Africa's debt problem and the continent's inability
to deal effectively with the massive destruction caused by this
terrible disease.
He told me how Zambia loses two thirds of its trainee teachers to
HIV each year. How the result has brought to a shattering halt the
tiny education system in that country. How Zambia pays more in
debt repayments to us than on its entire healthcare budget. How
ridiculous it is that Zambia, having entered the Heavily Indebted
Poor Countries (HIPC) initiative, which is supposed to end the debt
crisis, will end up paying more in debt than they did prior to entering
the initiative, as a result of the complex, arbitrary and ineffective
series of financial hurdles the World Bank and IMF have imposed on
these countries.
And how on average there has been only a pathetic 27 per cent
reduction in the debt payments that are crushing and smothering
those countries which have so far qualified for debt relief.
His head turned down, and that familiar voice began to shake as he
spoke of the onerous debt burden breaking the backs of the
increasingly tired and defeated peoples of this beautiful, intoxicating
continent.
This is a man whose imprisonment mirrored that of his country,
whose freedom was his country's freedom. Who was unbowed,
unbroken and, in his most staggering defeat of his tormentors, was
not embittered. Now he sat silent, for a moment beyond words at
the monstrous enormity of what he had outlined in this tragic tour
d'horizon .
The independent study I was showing Nelson Mandela, on the
World Bank and International Monetary Fund was by Chantrey
Vellacot, a leading global accountancy firm. I also told him that I
had heard of a report circulating within the World Bank that the
HIPC initiative is severely flawed and not capable of delivering what
it set out to do - a lasting exit from the debt crisis for the poorest
countries. After numerous rewrites this report was finally made
public last week, and it proves that far deeper debt cancellation is
required.
When I left Mandela he was armed with the findings of the
independent report and arguing that now, before infrastructure utterly
collapses and instability sets in, we must persuade and force the
global institutions to relent and free the people of Africa from their
unjust and unjustifiable yoke.
Two days later, South African President Thabo Mbeki talked to me
of the upcoming conference on Aids in Africa. This was the time for
increased pressure, he said, echoing his predecessor. He showed
me the Millennium Action Plan, drawn up by him and other African
leaders, which they would be discussing at the next Organisation
for African Unity meeting, and which they will be taking in its final
form to the G7 summit in Genoa in July. In broad, bold and blunt
language, these leaders demand deeper debt cancellation.
These are not extremists. South Africa is a relatively rich country,
able to handle its own debt burden - at least prior to the Aids crisis.
Mbeki and Mandela are speaking for their continent and less
fortunate neighbouring countries, which desperately need more debt
relief.
This whole debt crisis has become a sickening joke. Everyone - the
politicos, the bankers, the bureaucrats - know these people can
never pay back this money. Nor do we need their cash. That
argument has been won already - else why the 100 per cent relief
from the G7? If the argument pertains to the richest nations, why
not their agents, the IMF and World Bank, which we own as
taxpayers in the richest nations?
Urgent and decisive action is required now as the impact of Aids is
turning a desperate situation into an even more critical one. Gordon
Brown says he is alarmed about the ongoing debt crisis, and he is
right to be. Especially in light of the Aids crisis the debt initiative he
has done so much to lead from inside the political mainstream is
faltering. Even by its own standards it is failing. By the standards
set by Drop the Debt, it is woefully inadequate.
Gordon Brown and the finance Ministers of other rich nations who
gathered this weekend in Washington must follow through on their
own commitment. They must direct the World Bank and the IMF to
do as the richest nations have done and give 100 per cent debt
relief. One day this will happen. And when it does, the only pertinent
question will be, why not before? Did you really require those extra
5,000 people to die each day in Africa of Aids before you see the
logic that appears so obvious to everyone else? Was it truly
necessary to cripple the health, education and agricultural sectors,
removing hope for the weakest and the poorest? What new whip do
you wish to have with which to beat them?