G8 debt deal 'only a beginning'
2005-06-11 22:00
London - A deal by the world's leading industrial countries to cancel the debts of the world's poorest was welcomed on Saturday by African countries, humanitarian groups and social activists as a positive but modest step toward tackling global poverty.
The deal was hailed immediately by several of the 14 African and four Latin American countries which make up the first group to benefit from the deal to cancel $40bn in debt under a deal sealed by the G8 finance ministers.
Ethiopia praised the deal but hoped no strings were attached, while Rwanda promised the money saved would go towards private sector investments and Uganda welcomed it as a helpful, albeit long overdue decision.
Aid groups and activists also welcomed the move, but called for extending debt cancellation to dozens more poor countries as well as sharply increasing development aid and ensuring poor countries get fair terms for trade with the rest of the world.
"Tomorrow 280 million Africans will wake up for the first time in their lives without owing you or me a penny from the burden of debt that has crippled them and their countries for so long," exclaimed rocker Bob Geldof.
But Geldof said he would keep up the pressure for greater efforts to reduce poverty as he organised Live 8 concerts to be held in the capitals of the richest countries in the run-up to the G8 summit in Scotland on July 6-8.
"We must be clear that this is the beginning and the end will not be achieved until we have the complete package demanded by the Commission for Africa of debt cancellation, doubling of aid, and trade justice," Geldof said.
'Damaging free trade agenda'
The decision to cancel debt was one component of the "Marshall Plan" for Africa launched this year by Britain, the current president of the G8, but the United States has not signed up to the other component - a call to double annual development aid to $100bn by 2015.
The Make Poverty History (MPH) campaign, the British arm of a global anti-poverty movement, said the move was positive but called for more debt relief.
Leaders of the lobby group have also attacked moves to link aid to water privatisation or economic liberalisation policies.
"The G8 countries have pushed forward a damaging free trade agenda," MPH member John Hilary said.
"If they really want to give developing countries the right to decide their trade policies, it's now up to them to change their aggressive stance at the WTO," Hilary said.
Anna Thomas, a senior policy adviser at the Christian Aid charity, welcomed a commitment to provide "universal access" to HIV treatment by 2010, but called for resources to be put in place to achieve the aim.
Romilly Greenhill of ActionAid said the debt cancellation deal "is good news but it's not enough".
She said 62 countries need debt cancellation and "we are only talking about 18 countries for the time being and no progress has been made on aid. We wanted $50bn more."
- SAPA