More on Cancelling Debt to Developing Countries

Reuters reports that the UNCTAD (United Nations Conference on Trade and Development) is recommending cancelling all African debt in order to attempt reaching the Millenium Development Goals by 2015. UNCTAD also reports that Africa's growth rate will have to double (to 7 or 8%) to meet the goals, on top of cancelling debt and requiring an additional $40 B in relief. Furthermore, it claims that the Heavily Indebted Poor Countries (HIPC) initiative (1996) to reduce foreign debt from the 42 poorest countries to sustainable levels has failed.

The Christian Science Monitor also has a much more interesting discussion on this same matter, focusing more on US interests in the debt forgiveness program and the goals of the G-7. This article supports the work of HIPC in erasing debt, citing Tanzania as an example where loan forgiveness allowed the country "boost education and eliminate school fees."