Many of the loans which are being re-paid were made during the Cold War to repressive regimes and corrupt leaders, who used the money to strengthen their rule or to line their own pockets. Many more loans were made without attention to the viability of planned projects or to the capacity of the recipient country to make repayments. Very little of the money filtered its way down to make any real difference in the lives of the African people. Demanding that these people and their new governments now pay for the corruption and mismanagement practiced by previous regimes is simply unjust.See also Confessions of an Economic Hit Man (interview, not book, linked):
...we go to that third-world country and we arrange a huge loan from the international lending community; usually the World Bank leads that process. ...One of the conditions of that loan is that the majority of it, roughly 90%, comes back to the United States to one of our big corporations, the ones we've all heard of recently, the Bechtels, the Halliburtons. And those corporations build in this third-world country... big infrastructure projects that basically serve the very rich in those countries. The poor people in those countries and the middle class suffer... In fact, often their social services have to be severely curtailed in the process of paying off the debt. Now what also happens is that this third-world country then is saddled with a huge debt that it can't possibly repay.posted by mistersix at 6:32 PM on February 22, 2005 [1 favorite]
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however, it is ultimately our interest to help Africa stand on its own two feet -- not in a patronizing way, but in a brotherly way.
being aware of the problems Africans face is a step.
PG is right that bad government is the source of many problems. I think the only real way to overcome this is by reaching out to and constructively educating the people. rather evident, very necessary.
posted by pwedza at 12:08 PM on February 22, 2005