A week after the end of the G8 Summit at which assistance for Africa was announced, The Guardian is reporting that leaked documents show that some European Union countries are seeking to water down the agreement. The documents reveal that Belgium is leading an initiative to make it more difficult for the 18 poorest countries in Africa to be granted 100% debt relief. Belgium, Austria, and Luxembourg are arguing that the IMF should maintain strict controls over the 18 countries by being given the right to approve or reject economic policies. The IMF “conditionality” proposal offered by Belgium would require the African countries to introduce “structural reforms” such as privatization and trade liberalization.
Back on June 15, Media Mouse raised questions about the debt relief and pointed out that countries had already participated in IMF structural adjustment programs and would likely be forced to participate in other financial programs designed to create a “favorable” investment climate for Western corporations.
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