New approach to debt called for

[Robert Weissman <rob@essential.org>]

Africa-at-Large
 Botswana Wants New Approach Toward Africa's Debt
 Panafrican News Agency  August 30, 1999

NAIROBI, Kenya (PANA) - The president of Botswana, Festus Mogae, has called
for a new approach toward debt alleviation in Africa, saying previous
attempts to solve the problem were "too little too late."

 Mogae, who is in Nairobi to chair a vital two-day meeting on Africa's
debt, said that the situation was deteriorating and it was not enough just
to reduce arrears.
 "The African countries need 100 percent debt relief as we are in a debt
trap that is causing havoc in our economies," he told a press conference.

 He argued that conditions set by donors rather ignored the prevailing
situation in Africa, raging from internal conflicts to poor governance.

 "The time frame is too short," he said. "For instance, countries with an
unemployment rate of 40 percent are told to reduce the civil service, and
do it in three months. We must perform for three years before assistance is
granted. That is like telling a drowning man that he must survive for three
days before he can be saved."

 He said changes in the world economy were constraining Africa's
development, adding that "globalisation means both challenges and
opportunities...but our debt problem is preventing Africa from taking
advantage of the situation."

 Mogae stressed that Africa was not opposed to the Structural Adjustment
Programme, but noted the need for donors to be persuaded about the debt
relief because it was a matter of survival for many African countries.

 Africa owes about 350 billion US dollars in external debts.