Now THIS REALLY is exciting news!!! - 5 Feb 2005

G7 finance ministers have backed plans to write off up to 100% of the debts of the world's poorest countries.
 
If you've been praying for the poorer nations on earth and asking God to intervene, you might just want to stop and read that last sentence again...
 
Gordon Brown partying
The BBC reports that UK chancellor Gordon Brown (left) is describing this week's London meeting of the world's richest nations as an event that would be remembered "as a summit for 100% debt relief". Some 37 countries could benefit after a case by case review by the World Bank and the IMF, he said.
Mr Brown said: "We are willing to provide as much as 100% debt relief for individual Hipc (highly indebted poor countries)." He added: "The rich countires have listened to the poor."
 
Learn more about the Drop The Debt Campaign here
However...
We now need to pray even harder that such good intentions would come to reality. In particular plans for an International Finance Facility to help deal with debt in the developing world have not been agreed.
 
Mr Brown wanted to provide $10bn (£5.38bn) a year over a decade, using G7 backing so the money could be borrowed up front on financial markets, despite reservations by the US. British International Development Secretary Hilary Benn said a solution would be found by 2006 with or without the US, but clearly it would be better if America would come on board - so let's pray bfor a change of heart on the part of the US administration.
"For the United States it doesn't fit into our budget process."
The IFF is a key element of Mr Brown's proposals for a modern version of the Marshall Plan, which brought US aid to rebuild Europe after World War II, for the developing world. Earlier, speaking to BBC Radio 4's Today programme about Mr Brown's plans, John Taylor, under-secretary of the US Treasury, said: "For the United States it doesn't fit into our budget process.

"We are providing more funds for Africa. For example in the last four years' we've increased our support for Africa by four times, from $1.1bn per year to $4.6bn per year," he said.

Within 20 years half the world's manufactured exports could come from developing countries and within a decade five million US and European jobs could be outsourced
UK Chancellor Gordon Brown
 

"It's not so much we oppose the British using the IFF, or others, but it does not work for the United States, because we have means for providing support for poor countries that is working for us."

The UK has made alleviation of poverty in the poorest nations a key theme for its 2005 presidency of the Group of Eight (G8), which comprises the G7 and Russia. The G8 countries will meet at Gleneagles in Scotland

At a dinner on Friday night, former South African president Nelson Mandela backed Mr Brown's plan when he urged the finance chiefs to write-off African debt and provide an extra $50bn (£26.69bn) a year in aid for the next decade.

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