This is an example of the type of hypocrisy in American foreign policy which leaves me disrespecting and untrusting of our government.
Quote: In Paris, the first stop of his European tour, Baker met with Chirac at the Elysee Palace. Emerging from that session, the American envoy told reporters that "the French and the U.S. governments want to reduce the debt burden on Iraq so that its people can enjoy peace and prosperity." Iraq owes the French government about $3 billion.
A joint statement issued by Bush and the European leaders said that "France, Germany, and the United States agree that there should be substantial debt reduction for Iraq in the Paris Club in 2004, and will work closely with each other and with other countries to achieve this objective. The exact percentage of debt reduction that would constitute 'substantial' debt reduction is subject to future agreement between the parties."
The Paris Club is an informal grouping of 19 Western creditor countries. When a debtor country runs into problems with repayment, the group may coordinate restructuring of the country's loans from foreign governments.
French Foreign Minister Dominique de Villepin, speaking separately, said debt reduction could take place only after occupation authorities had transferred power to a sovereign Iraqi government. France has repeatedly pressed for such a transfer as the best way to restore peace to the country.
The government of former president Saddam Hussein left behind about $120 billion in debt to foreign governments and private lenders. U.S. officials view reducing that sum or improving repayment conditions as vital preconditions if Iraq is to rebuild its ruined economy. They also want to cut an additional $100 billion that Iraq owes in reparations, mostly to Kuwait and Saudi Arabia for damage in the war that began with the invasion of Kuwait in 1990.
Now juxtapose that with the realities of African Debt to the West and IMF and World Bank:
Quote:Arguably, Africa’s most visible crisis is the crisis of poverty. The continent is the poorest in the world and the average African lives on less than $1 a day. At the same time, African countries are forced to repay billions of scarce dollars a week to wealthy nations and institutions in the West such as the World Bank and IMF while millions of Africans continue to die from poverty-related causes.
• Africa spends about $15 billion* a year on debt repayments but gets only $12.7 billion in aid during the same period (World Bank, OECD).
• Africa’s total debt stands at $300 billion (Nepad Secretariat). To put that in perspective, according to Forbes Magazine, 2002, the 18 richest Americans could pay Africa’s total debt with several billion in change.
• All developing countries, including sub-Saharan Africa, pay $1 billion per day in interest on debt (World Bank).
• For every $1 African (developing) countries receive in grants, they pay $13 in interest on debt (World Bank).
• African countries spend up to three times more on debt repayments to wealthy countries and institutions in the West than they spend on health care, food, and education for their sick, illiterate, and hungry millions.
Is debt repayment more important than life
I think that the push by the USA get creditor nations to cancel Iraq;s debt burdens is admission that such debts stifle economic growth and prosperity and the ability to rise out of poverty. However, Iraq having the second largest known oil reserves in the world and only 20 million citizens, is certainly in a much better position than African nations to repay its debts. Yet, Africas debt burden and relief from it, is not zealously being pursued by America, but likely, to the contrary, just the opposite as the USA essentially dominates the World Bank and International Monetary Fund, which lends money to Africa.
Certainly Africa has had its share of dictators, yet there was no push to cancel these nations debts after the dictator lost power. Why is Iraq so special? Is it because Iraq sits in a region that is growingly hostile to the USA and has OIL, while African nations present no such current threat? Does such policy then send the message that the only way to get help is to be a
threat? Is this why in America, money and programs pour into communities after episodes of civil disobedience or riots? Should Africans become terrorist, just so that they can get some actionable attention and assistance from the West?