Bono on debt relief

Bono talks about debt relief in Africa

African Debt Relief - Receivership?

Sep 22, 2008 by Alexander_IV | Posted in International Organizations

There is a lot that has been said about debt relief for African countries. I appreciate that these countries can not progress while saddled with so much debt, but I also appreciate we can not just write off the debt. First, most of that money belongs to the tax payers of developed nations, and second the African nations may get in the habit of just borrowing more, have corrupt leaders steal it, and then plead poverty again.

When a company goes bankrupt, it can go into chapter 11. It submits a restructuring plan for the future and a neutral part is appointed to oversee its affairs until the plan is executed.

Maybe the same thing should be done here. They can have debt relief, but they must submit a plan. Administrators from the lending nations will be appointed. All government borrowing and spending must be approved and or managed by these administrators. When the plan is executed, then the country gets control of its affairs again.

Some would cry "colonialism" or "imperialism". I won't argue. It is a form of that, but really, should be give something for nothing.
I guess to to reiterate. This is a choice like bankruptcy. A company can choose not to accept bankruptcy protection but it must face the consequences. An African country may resent a having foreigners intervene in their affairs, and if they don't want it, they must face the consequences. No debt relief. No more credit. The word sovereignty for nations is like the word liberty for people. It's not a free pass. It means you have to live with results of your decisions.

Hey again man, keep seein your questions in my friends list so I guess I'll answer eh. I reckon it's a good idea the problem is acceptance from the African countries. As we both know a lot of them are corrupt and easily bribed, I honestly don't believe many African politicans care about their country's development or progress. They're all in it for the money, which brings me to another point, so is every politician. Don't you hate it when they promise everything they can't give?

Anyway, suppose you got an African leader who's aim was to bring his nation out of poverty and into the age of modern technology (which is rare, as they all strive to keep themselves financially secure and starve the country). Is he going to want his plans monitored or "managed" by foreign people? I think not. Imagine the commotion if Australian residents needed confirmation to build say, a dam. People in general don't want to be controlled, it's bad enough with their own government, let alone an international one. While I understand they have the choice to request construction on whatever they want, it still has to be approved by the lender. Something that could cause diplomatic relations between the two to boiling point. The countries involved could quite easily become unfriendly over building disputes, money required for the job and of course the whole fact that they can't just build what they want without someone overseeing them. It is a good idea though, but one that could have equal disadvantages to the advantages. If it worked you'd also have to make sure the people who took it, could pay it back. You don't want an unreliable government who takes when it's needed and doesn't repay. What repercussions could happen then? War threats? Surely not, but maybe economic sanctions? That would bring the situation back to where it was previously. A ban on borrowing in the future? Possible. But, if all went well then you have a system that works - I have no doubt though that there will be some sort of minor issues along the way. Everyone always have some type of problem to bring up. Nothing is ever right.

At the end of the day though it is all about change and with the laws and unwilling politicians the lifestyle or economy of Africa will never alter. May I suggest American or Australian representatives to take power temporarily during the re-building of the nation. Then we could assure all aid sent would be used appropriately and effectively. They would remain in their positions until the country had turned itself around and re-paid all debt, at which point the African people would vote for successors. But no, they'd be riots for having "whites" controlling their precious land. If Africa can mend it's dodgy reputation and it's corrupt officials then it can establish a partially stable government body that can draw out a plan. Until then the offer of debt relief using this method would be knocked back everytime.

Edit: Reiterate? Sounds rude, I might be wrong, but I get the impression that your complaining about repeating yourself? Because I understood the question originally. Or you don't mean that?

Edit: That's right, they can choose to not accept debt relief but isnt your plan ineffective then? What your suggesting is that the country choose what they need to build and have administrators confirm that and watch over the construction. What I'm suggesting is that we have the African government leaders temporarily removed and replaced by Westerners that won't "steal" the funds that the administators will give. For example, Ethiopia can send in a "plan" on infrastructure. If it's approved they will be granted the money right? What's to stop them taking off on a plane as soon as they get their hands on it? Even if administrators organise the workers needed to build the project agreed upon and they make sure everything needed is ready, they still can't assure the African government is going to use the money for the right purpose. It's all to do with the type of people and the situation they are in. The whole country is disease ridden and poor, why wouldn't they take all the cash they can. It is cruel but that's the harsh reality.

Anyway, that's my opinion on it and one I hope helps answer your question bro. I'm off, cya later.

Should countries give debt relief to African nations?

May 16, 2007 by Tom S | Posted in Law & Ethics

After all this is what the singer Bono (from the group U2) wants. Isn't it funny, however, that Bono moves his assets and business out of Ireland, to Holland, specifically to avoid taxes? In other words he wants us, the taxpayers, to forgive our loans to African nations, but doesn't want to do his part. Playing a song at a benefits concert doesn't count since it doesn't hit his pocket book.

Western countries has exploited Africa in divers ways, has encouraged dictatorship and civil wars over years. The lobby groups keeps selling weapons and supporting civil wars. A country such as Congo , formerly Zaire, would have been as rich as US if Belgian, French and American governments did not abusely supported Mobutu, Kabila father and Kabila son in their destructive wave of Congolese economy.
Zaire is only one of many other examples. The world Bank and Global Monetary Fund have servered as tools for western countries to endebt Africa in order to maintain this continent under political and economical dependance.
Now, should countries give debt relief to African nations? My answer is NO. Western countries would better help Africa to impliment democratic regimes, control their own economy, stop encouraging dictatorship and civil wars. Afterward, African nations should become more responsible and pay their debts with no interest.
It is just insane to wound someone and promise relief at the same time. Africa must stand alone. Nelson Mandela gave the best example to all the nations and South Africa is now showing the path.

What Does Africa Owe?

An excellent article by Neil Watkins, head of Jubilee USA Network, on the debt in Africa and asks who is responsible for it? Who should pay? How much should Africa pay? At the bottom, click on the box to read and download a Word.doc version of the same article.

Neil Watkins | February 18, 2008
Editor: John Feffer
www.fpif.org

As President Bush embarks on his journey to Africa, he is looking to secure his legacy in part through his administration’s development initiatives on the continent. One of those initiatives is the administration’s support for expanded debt relief for the continent.
A closer look at this administration’s record on debt should begin with the question often posed by Africa-based civil society groups: who owes whom?

Canceling Debt
Take the case of the Democratic Republic of Congo (DRC). The United States, the World Bank and IMF, and other creditors lent former President Mobutu Sese Seko billions of dollars in the 1970s and 1980s, knowing full well that the funds would not benefit the people. This was a price they were willing to pay in the context of the Cold War to win the country’s allegiance to the West. But this clearly odious and illegitimate debt remains on the books today – over $9 billion worth in fact, and the people of the DRC are still paying for the sins of a leader they didn’t want.

The Bush administration has supported debt cancellation in Africa. Does Africa owe President Bush a debt of gratitude? In 2005, the Bush administration, together with the UK, took strong leadership at the G-8 summit in Gleneagles, Scotland and agreed to provide the possibility of 100% debt stock cancellation of eligible debts to eligible countries. This was important because up until this point, only debt relief – reduction of payments – rather than outright cancellation, was possible.
The initiative championed by the Bush administration has since become known as the Multilateral...

Read more...

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