No More Debt

I read this interesting little tid-bit from Sean @ The American Mind today about third-world countries having all their debt to various institutions wiped out. Here’s what he had to say about it.

The G8 agreed to write off billions of dollars of highly impoverished third-world countries. Finance ministers from the Group of Eight industrialized nations agreed Saturday to a historic deal canceling at least $40 billion worth of debt owed by the world’s poorest nations.

Britain Treasury chief Gordon Brown said 18 countries, many in sub-Saharan Africa, will benefit immediately from the deal to scrap 100 percent of the debt they owe to the World Bank, the International Monetary Fund and the African Development Bank.

He goes on to say that he never expected countries like Bolivia or Ethiopia to ever pay off their debt. He’s probably right there. I’ve given that some thought in the past, only to come to a quick conclusion that there’s no way possible they could pay off their debts. I doubt they would even if they could.

I don’t understand what they plan to do with the rest of their debt. It’s not like these countries are going to stop recieving financial aid, their debt is gonna start growing immediately again. It’s definately a good step, I just don’t see how we won’t be in the same position we were 10 years from now.

Here’s the story on Yahoo! News.