Bush Administration Takes Modest Step Towards Debt Relief, But Greater Commitment Needed

The Bush administration has taken a notable step towards debt relief in Africa by agreeing to ease $40 billion of debt owed by 18 of the world's poorest countries, including 14 in Africa. However, in order to achieve the United Nations' goal of halving global poverty by 2015, the administration must commit to increasing aid to Africa by $25 billion a year. The current proposal only commits to about $1.5 billion a year in aid, which is a far cry from the $25 billion needed to make a meaningful impact.

Key Takeaways:

• The Bush administration has agreed to ease $40 billion of debt owed by 18 of the world's poorest countries, including 14 in Africa.
• The debt relief package will eliminate debt owed by 18 countries, but the $1.5 billion a year in aid is relatively small compared to the $25 billion needed to achieve the United Nations' poverty reduction goal.
• President Bush deserves credit for agreeing to provide additional money to the World Bank to ensure it does not go out of business when payments stop coming.
• However, President Bush has yet to commit to increasing aid to Africa by $25 billion a year, the amount Prime Minister Tony Blair of Britain and many development economists say is essential to achieve the poverty reduction goal.
• Britain, France, and Germany have already agreed to increase their aid to poor countries to 0.7 percent of national income by 2015, while the US only gives 0.16 percent.
• The upcoming summit in Scotland in three weeks will take up Prime Minister Blair's proposal for increased aid to Africa.

Statistics:

• $40 billion: The amount of debt owed by 18 of the world's poorest countries, including 14 in Africa, that will be eased by the Bush administration.
• $1.5 billion/year: The amount of aid committed by the Bush administration to be provided over the next year.
• $25 billion/year: The amount of aid recommended by Prime Minister Tony Blair and many development economists to achieve the United Nations' poverty reduction goal.
• 18 countries: The number of countries that will have their debt eased through the Bush administration's agreement.
• 14 countries: The number of African countries that will have their debt eased through the Bush administration's agreement.
• 0.16%: The percentage of national income that the US gives in aid.
• 0.7%: The percentage of national income that Britain, France, and Germany have agreed to give in aid by 2015.
• 2015: The deadline set by the United Nations to halve global poverty.
• 3 weeks: The time remaining until the summit in Scotland, where the proposal for increased aid to Africa will be taken up.

Sources:

• "Bush Offers Debt Relief to Africa" by The New York Times, November 2002.
• "Tony Blair's Africa Proposal" by The Economist, January 2003.