Help Africa to Continue Its Development
Ellen Johnson-Sirleaf, President of Liberia | April 10, 2009
The economic crisis threatens to undo the progress made across Africa. ++ It has been achieved as a result of stronger leadership, more accountable governments and effective development aid. ++ Funds from the IMF and World Bank are still required, as well as strong export market, to allow development to continue and not suffer from a crisis Africa did not create. ++ Protectionism must be avoided and "strong action by African governments and robust support from the international community can keep Africa's recovery on track."
Mon, Sep 28th 2009, 20:23
Nicole Greene, NYU - Global Affairs, (3)
As I finished reading this piece, I started to think about the massive amount of debt most African countries face, and how this impacts their ability to effectively develop.
If you look at the case of South Africa, the ANC was handed a bill for $16.5 billion USD by international banks following the end of apartheid (since then it has grown and is now roughly 75 percent of its total external debt). Additionally, other countries in the region were hit with apartheid-caused debt, equaling a bill of $28 billion USD for all of Southern Africa.
These statistics are just daunting because South Africa's debt is odious since it is a carry-over from the apartheid era. Their debts should be cancelled by internal lending institutions, multinational banks, and corporations that aided and promoted apartheid because it is siphoning off much needed resources. According to international law, if a loan is “used against the interests of the local populace, then it is ‘odious’ and need not be repaid.”
The ANC has promised that South Africa will pay its debts, but at what price? As the country continues to pay off its debt, it is forced to cut critical funding in social development, poverty relief and development of human resources. Is this the price South Africans must pay for the past? No! There must be a global initiative that forces lenders to take responsibility for their actions and carry the burden of the cancellation of these odious debts.
South Africa’s debt is its largest immediate obstacle to growth and sustainable development. Without the burden of massive debts, South Africa would have the ability to fund all of its necessary development sectors that are currently jeopardizing the quality of life for South Africans. . By canceling South Africa’s debt, the world will be ensuring that the victims of apartheid are not being forced to pay twice.