Samuel Gregg of the Acton Institute has a good piece in Monday's edition of the Washington Times that pretty much sums up why handing out economic aid wily-nily to the various nations in Africa is a bad idea and should be rethought. One area that requires such a rethink is the issue of debt forgiveness that a lot of the MSM community, the elites and especially from a considerable amount of African leaders when they visit D.C. or have an audience with our President. I'd say Gregg pretty much sums up the reason why such requests should be shot down from the get go with the following:
Allowing heavily indebted nations to walk away from their debts sends precisely the wrong economic signal to private and public international lenders of capital. Why should they lend any more funds to such countries in the future if they can never be sure their funds will be returned? Developing countries need to develop reputations as responsible borrowers who not only deploy the borrowed funds productively but who also repay their debts as contracted. How will debt forgiveness of a country like the Congo, especially given its extensive government corruption, help the Congo to achieve either goal?Lets hope more folks in D.C., the World Bank and other groups take heed of such thinking.
On the moral side of the equation, such debt forgiveness is very questionable insofar as it effectively mortgages the economic future of the ordinary citizens of countries like the Congo. It is they -- not the President Sassou-Nguessos of this world -- who will suffer as a consequence of the Congo's future limited access to the foreign credit essential for the only sure slayer of poverty: economic growth.
Moreover, does anyone seriously imagine debt-forgiveness that does not hold accountable developing world political elites who corruptly diverted the billions loaned to their countries is likely to discourage future such diversions? Surely such actions will only undermine ongoing efforts to discourage corruption among these elites by effectively rewarding with debt forgiveness countries whose leaders have been irresponsible borrowers.
Enough is enough. The time for placating corrupt African politicians is long past. Refusing Mr. Sassou-Nguesso's demands would signal the developing world's political elites that the days of toying with their peoples' futures are over. While such refusal might appear unfashionable in some circles, the future well-being of millions of Africans depends on it.
1 comment:
The best reason NOT to give to various African nations came from former leaders recently. They adviced not to give directly to the nation because the money/supplies would only be used to further warlords or incompetent regimes.
BUT they said the countries still needed help and giving to aid-organiztions who can control the distrubution of supplies, is the best way to give.
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