Irish doctor with too many thoughts, too little time and a blog that's supposed to check in on reality.

Friday, February 11, 2005

"Make poverty history" - good or bad???

Rod Liddle on debt relief - he's taking the line that rescheduling debt is better than canceling debt and then he states that rescheduling debt repayment would affect the country's credit rating and lead to higher interest rates on future loans.
He also raises the point that the political culture of a Third World country is much more important than the size of the debt in terms of future development. - "Even when it is not used as a basis to borrow more money, debt relief rarely guarantees that a country will begin to develop its economy, unless economic power is redistributed from the incompetent or corrupt elites which incurred the debt in the first place. In fact, to forgive the debt is effectively to forgive the dictator and entrench him in power. "


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