Financial Future: Is it time to cancel Africa's debts?
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- Опубліковано 28 вер 2024
- Is it time to cancel the debts of low-income countries in the global south? It’s estimated that three out of five low-income countries are struggling to pay their debts. In Africa, 21 countries are either bankrupt or in financial distress, and are on the hook to repay more than $70 billion in 2023 alone. Freeing up this money could help these countries get back on their feet and invest more at home-but it’s not without its drawbacks.
Heidi Chow, executive director of the UK-based nonprofit Debt Justice, says debt relief is needed. She argues that debt payments shouldn’t come before essential human needs, and that rather than tightening the screws on indebted countries, we should address the predatory lending practices that have pushed many global south countries to the brink of collapse. Bright Simons, policy analyst at the Ghana-based Imani Center for Policy and Education, contends that blanket debt cancellation doesn’t benefit anybody, saying that some countries have successfully paid back their debts while others have spent recklessly. And, he argues, domestic lenders and private investors shouldn’t have to pay the price for governments’ poor financial decisions. Watch the Doha Debates Podcast as they debate how to best address Africa’s debt crisis.
Doha Debates Podcast is a production of Doha Debates and FP Studios. This episode is hosted by Nazanine Moshiri. Thoughts on this conversation? Let us know! Follow us everywhere @DohaDebates and join the post-episode discussion in our UA-cam comments.
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Not only cancel - but also make very sure there is no repeat 🔁
13:11 I am learning so much from this debate- thanks for bringing such smart speakers:)
This was such a smart debate- I learned so much and really appreciated the guests' expertise as well as their willingness to listen to each other. Thanks to the young man, Mohamadu from Guinea-Bissau for his questions and perspective:)
The argument by Bright Simons is comparing apples to oranges. The issue of individual national responsibility is important. However, that does not influence the interest rates of the loans. Remember, these multinationals and lenders give out loans purely for profit. Interest rates are priced off a countries ability to repay these loans. This is problematic for lower income countries as their capital base is very low.
These lenders are also, big investors in industries that profit of the consumer attitude of lower income countries. They therefore have no incentive to lower interest rates.
President Ruto recommended that lenders forgive debts of lower income countries, and allow these countries to focus on development, otherwise early repayment of loans will be problematic.
Also, the form of multiparty politics will not allow for systemic development before the loans are due. Since each party wants to merely attain power, and will go to any extent, including paying voters at polling stations and instituting stop-gap policies which merely appeal to the emotions of voters, to remain in power.
These multinationals and lender institutions have think tanks. I expect that they do a great job at properly investigating the true nature of politics in the global south. It is very worrying when on the one hand in Ghana, for example; the IMF would castigate the country for being in a state of decline and all of a sudden because the IMF programme is being followed, Ghana is all of sudden on the rise.
When the inflation rate is at an all time high, enterprise loans for businesses are high and forex rates are also problematic. Not to talk of the cost of living crises the country has.
WE Can ask to cancel the debts . Also the more important challenge is also to renegociate or to increase the parts of poors countries in naturels ressources fossiles shared...
This is interesting.
The speakers are very learned on the topic.
I believe there can always be a way out in our debt sustainability discussion.
thanks guys!
Very informative debate. IMO the buck stops with the borrower. Doesn't matter how responsible lenders are, if borrower governments keep missapropriating funds, then there's a real problem.
Africa desperately needs money for its sustainability, and to tackle this issue for good we don't need to focus on debts or foreign aid. Whether the debts are cancelled or simplified with the pay terms, we will always be stuck in this circle of dependency. A new policy on the sides of both borrowers and lenders is needed for now, but only unifying Africa will solve this problem for good.
Can Africa be unified like Europe
There is a better way than cancelling debt. For poor countries, the amount of debt payment should be channeled toward building roads, energy, agriculture, education, in the country.
This will force the indebted natioñs to slowly emerge in developments and prosperity.
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If debt is simply cancelled, the politicians and bureaucrats will take advantage and enrich the people at the top and the connected.
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So a more pragmatic approach is to monitor those debt repayment to remain in the same country and build the same.
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One relief .... Lower interest rate and employ "debt freeze" from 6 months upto one year. Meaning the debt remain the same and unpaid in the "freeze" period.
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After freeze period, debt payment pick from where it left off.
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In a few areas, portion or all debt should be forgiven.💸💸💸💸💸
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Once upon a time English law imprisons debtors if unable to pay😂😂😂😂😂. Banned😂😂😂
Another point of relief....
Significantly reduce national debt, such that the nation is able to both continue to repay debt and provide services to citizens.
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berhutang utk pertanian, utk jln , utk keperluan yg umum
What, be civil and respectful after you've stolen everything and systematically murdered billions of Africans.
Waive any and all debts.
What you did was criminally vicious.
If you keep everything free . That country will never develop and beome responsible
Has enough of this changed on the continent?
"Prof. AYITTEY: Let me give you an example. Back in 1999, Uganda, for example, received debt relief equivalent to something like $790 million, and when Uganda got that debt relief, the first thing that President Museveni did was to buy himself a new presidential jet. Africa's begging bowl leaks horribly. The old Africa seeks to put more money into this leaky bucket. A new approach will seek to plug the leaks."
From:
Expert: Africa Needs More than Foreign Aid
NPR
And corruption , commissions are reduced the final dépenses final near people to Help...
No, we can use the debts in good and beneficial such as by adding more pressure to fix corruption, addressing the why, and restructuring the management board.
In my opinion
Calls for debt forgiveness are anything but new. So is the lack of any positive effect. Forgiveness of certain percentages of debt shoukd be linked to clear and timely reforms if at all. Reforms can be implemented immediately if leaders are responsible and with reforms, debt can begin to decrease.
Big debate for silly subjects
Credits givenout of greed
Debtors can file insolvency
Only solution
"" CONVERT DEBT TO INVESTMENT ""
CONVERT INTERST TO PROFIT SHARING ""
RESTRUCTURED INTO LONG TERM PROJECT FUNDING WITHOUT INTEREST
Is this debate for opinion building
Simple solutions no body appreciates
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