Topic: Is Debt cancellation and more financial aid the solution to the end of poverty
A Research work Delivered by Mr. Aghogho Careca Akarue CEO/Founder Liberty 4 Africa
Date: Saturday 20th August, 2005
Many factors contribute to poverty. War, corruption, and destructive economic management are among the most pervasive. Others worsen poverty’s impact. Unsustainable debt is one such factor. Half of the 600 million people living in the 40 poorest, most debt-burdened countries struggle to survive on less than one dollar a day. They die earlier, have access to fewer schools and teachers, and are hungrier and sicker than their counterparts in other developing countries.
Development credits extended to these countries have been provided on highly concessional terms and creditor countries have been working together to further ease repayment terms. The Paris Club, a group of official bilateral creditors mostly from developed countries, devised new and increasingly concessional mechanisms since the late 1980s for debt relief; by 1995 the Paris Club offered to low-income countries “Naples terms” for rescheduling, under which up to two-thirds of the eligible debt is canceled. Still, the poorest countries’ debt burdens remained high.
Over the past few decades, weak policies, adverse environmental and other external factors—often combined with protracted armed conflicts—and sometimes misguided borrowing and lending decisions have increasingly impeded progress toward sustainable economic and social development. This, in turn, made the debt burdens of the poorest countries ever more unmanageable. As it had become increasingly clear that much more needed to be done to help countries break the poverty-debt cycle, a global consensus emerged on the need to confront high poverty and crushing debt levels head-on.
Is Debt cancellation and more financial aid the solution to the end of poverty is it a way out to reduce poverty in the World today and especially in Africa? Debt cancellation and more financial aid is the best way forward for the world challenges and especially my great continent Africa. Which full of rich human and natural resources but still declines in her developmental growth, it lags behind other parts of the developing world in achieving the Millennium Development Goals. It continues to suffer from the tragic consequences of deadly conflict and poor governance.
From my research and involvement in Global Marshall Plan Initiatives for a Worldwide Eco-Social Market Economy, the concept of Global Marshall Plan initiative uses the objectives of the UN Millennium Development Goals an intermediate step towards establishment of an Eco-Social Market Economy. We can never have a sustainable world as longs as poverty still lies in innocent children and people hearts and lives.
Debt cancellation and more financial aid will help to reduce poverty in Developed, developing, underdeveloped countries, and enable them to adopted domestic policies and strengthen institutions that will enabled people to take advantage of global markets and thus will sharply increased the share of trade in their GDP. Declining the debt of the most marginalized countries, especially in Africa, will crate opportunities for them to participate more in globalization and the benefits it can bring...also creating more opportunities such as debt relief will help particularly powerful for those countries that improve their investment climate and social services - thus will enhance the HIPC Initiative effectively.
Encouraging investment and creating jobs requires good economic governance - measures to eradicating corruption, better-functioning bureaucracies and better regulation, contract enforcement, and protection of property rights - which will lead to sustainable development especially in developing nations. I regard the Debt cancellation and more financial aid the solution to the end of poverty as a way forward towards sustainable development and advise others Individuals, Organizations, Institutions, Agencies…to seek to apply these initiatives and its principles in their formal and informal setting.
“What is the faith of Africa in the 21 century when war, AIDS, poverty and malnutrition continue to drive African dreams to an early grave? When will my people be liberated? My missions are that Africans gain liberty from poverty, health hazards and have a productive future. My vision is to unite Africans as one and bring peace to my mother land”. – Mr. Careca Akarue Ceo/founder Liberty 4 Africa
THANK YOU FOR YOUR TIME AND ATTENTION
Akarue Careca Aghogho
CEO/founder L4A
Tel: 234-80-2826-0723
Fax: 234-53-252-494 / 00-1-832-201- 9273
email
www.idealist.org
www.trueconomy.net/liberty4africa
