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Junio 11, 2005
Bolivia's Debt to be Cancelled
Via Almada de Noche:
It looks like Bolivia's burdensome debt will be cancelled by the G8. From the BBC:
Debts written off for 18 countries - total $40bn
Debt repayments saved by the group each year - $1.5bn
Nine more countries to qualify within 18 months - takes total to $55bn
UK's contribution over next 10 years: $700-$960m
US contribution: $1.3bn-$1.75bn
Bolivia is one of the 18 to qualify for immediate debt relief. Some additional countries may qualify for similar debt relief if "they meet targets for good governance and tackling corruption."
Some say that the IMF and World Bank impose too many conditions for their loans. Some should never have taken place, such as the requirement to privatize water distribution, which is a fundamental human right and should not be used to generate profit. However, there is a serious corruption problem that is caused by an overpoliticization of the public bureaucracy. Up to now, there has not been the political will to make fundamental changes to combat corruption. If pressure does not come from within the country, how will these changes ever be made?
Posted by eduardo at Junio 11, 2005 04:10 PM