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Forgiving debt

The Economist Oct 3rd 2012, 15:06 by S.A. | FREETOWN

RESOURCEFUL Guineans make holes in sheet metal to convert windowless vans into
passenger vehicles. The process is not without artistry; on a recent visit Baobab saw one
conveyance whose glassless viewports were cut into the shape of…

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HARDLY noticed amid the hullabaloo of the presidential election, America has just given a
big (and belated) boost to the international effort to help the world's poorest debtor
countries. On November 6th, President Clinton signed legislation that provided $435m in
debt relief for HIPC countries (the ugly acronym by…

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Barely five years ago, the World Bank and IMF still refused to accept that the debts owed
to them by poor countries should be relieved at all. Only in 1996 did the Bretton Woods
institutions launch the first "HIPC initiative", identifying 41 very poor countries and
acknowledging that their overall…

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the World Bank, countries that have received help so far have seen the net present value
of their debt burden fall by an average of 40%.

There has also been a big effort to make sure that the poor see the benefits. To qualify,
HIPC countries need to prepare a…

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Cancelling Third World Debt

This report looks at the urgent need to cancel debt in the developing world as part of an
international emergency relief program to prevent poverty and needless death.

February 2006, Rajesh Makwana ~ STWR
Despite international protest, the $2.5 trillion in debt owed by developing…

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subsequent independence and regime/government changes, the responsibility for the
repayment of these illegitimate debts falls upon the citizens of indebted nations despitre the
irresponsible lending practices of the past.
More recently, debt has been the result of economic globalisation and the absolute
interdependency of countries through import and export (trade)…

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nations risk being crippled by being cut off from all further sources of credit. As a result many
low income countries are forced to channel huge portions of their budgets to repay
multilateral donors at the expense of essentials such as heath care, housing and education.
In this way low…

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In the meanwhile, economically dominant countries, which are also the primary creditors,
profit from both the compound interest charged on the loans and the increased access to
developing markets imposed through Structural Adjustment Programs (SAPs). The design of
this system is such that developing countries are left with no choice…

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announced a proposal to write-off the debt of the 18 poorest countries. They claimed the
write off would amount to a total of $40 billion. This was confirmed at the final G8 Summit
and was widely reported as one of the few successes of the summit for developing
countries. However…


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