Debt Cancellation

-a relief to the poor or a justification for capital flight

by Samuel Donkor

The Jubilee 2000 Africa campaign, a World wide organization with many branches in most African countries, is a movement canvasing for the cancellation of debts owed by Africa, Asia, Latin America and the Carribeans.

They called on the on the leaders of the G-8, in the 90s, to take concrete action directed at the cancellation of the crushing external debts, as an important gesture of solidarity and responsibility, as we entered a new millinium.

According to the movement, the ordinary people of the World demand concrete commitments and effectual actions from the G-8 to eliminate what has become an affront to our collective humanity as mankind and woman prepared for this century and millineum, adding that, the debt crisis is the responsibility of our governments and lending international institutions and governments, though it is the ordinary people who suffer the brunt of its effects.

Africa alone was indebted to a total sum of 375 billion dollars, Africa count are also among the poorest of the Highly Indebted Countries (HIPC) of the World.

The demand from the G-8 by the Jubilee- 2000 Africa campaign organizers was genuine and alright, but what they had failed to recognize, was the fact that, most of the debts were created by the unscrupulous leaders of these countries themselves through their personal greedy and rapacious rule, resulting in large capital flight, leading to economic woes on their people.

It is a fact that African leaders, since their independence, have not been able to manage their own affairs. They have been found to be greedy and unscrupulous in their administration of their nations up till today. And we all know that mismanagement is the result of greed, which also breeds corruption, which has become a canker in African governments.

African leaders are like the scriptures according to Jeremiah 6:13-15 saying; ' from the least to the greatest, all are greedy for grain, Prophets and Priest alike,all practice deceit. They dress the wounds of the people as though it was not serious. Peace, Peace; they say, when there is no Peace. Are they ashamed of their loathsome conduct?'

What better measures and suggestions were therefore put across by the campaign organizers to the G-8 to check and prevent the further raping, selfish exploitation and capital flight by the greedy leaders in this century after the cancellation of their debts.

It is sad to note that African leaders, both politicians and intellectuals, always fail to see or tackle the truth and to wrestle the root cause of their national problems, but rather start witch hunting and also look for avenues to blame the industrial world to the detriment of the people.

African leaders, both intellectuals, politicians and religious leaders have failed politically, economically and socially. They have today proved Dr Kwame Nkrumah wrong, that the blackman and for that matter, the African is capable of managing his own affairs. They have failed and disappointed their people after 46 years independence and are still putting blame on external forces without looking internally for their own mistakes and mess, omissions and commissions.

Actually, the conditions for the cancellation of debts under the HPIC scheme must have been made that, debtor governments must first prove , they were worthy to be chosen and that, they had put measures to prevent and deter the past occurences.

These African leaders must be reminded and also be told frankly,without any diplomatic niceties, that it would be unfair to the tax payer of the G-8 countries, if no conditions were attached to the debt cancellation. They are disappointed that, the poor people have up to today not benefited from past and present huge sums of monies given out to their governments.

This debt cancellation should not have been on a silver platter, but must have been linked to the existence of the rule of law and sustainable policies designed to abolish poverty and inequallity in the countries concerned.

The question now on the lips of ordinary people on whose behalf the institutions and organizers were pleading, is the ethical foundation of debt forgiveness, unless it can be guanranteed, that it really benefits the poor in the debtor countries. A general debt cancellations or reductions could very well be used for personal enrichment of ruling elites,for the financing of prestige projects, for higher military expenditures, which do not benefit the ordinary poor, as has been the case since their independence, resulting in their huge debts today.

A debt cancellation might also be interpreted as already seen, a justification for ccapital flight and encourages it even further, if no conditions wre attached.With past and present history of African leaders linked to capital flight and unscrupulous behaviors as far as mismanagement of their countries are concerned, it should be reminded that, considerations leading to cancellations of debts, should be looked into properly in designing any new modalities for the relief or forgiveness.

The questions also to be asked, is what happened to the huge fortunes, which some of the leaders amassed, who ruled in countries that asked for debt relief. Former President Mobutu of Zaire(DRCongo), Macos of Phil;ipines, Suharto of Indonesia, Houphet Boigney of Ivory Coast, Abacha of Nigeria etc and their cronies, who were the most notorious and stood for the many others, who channelled and are still chanelling their countries monies into their own pocket accounts overseas.

The governments now in power in these countries must do everything possible to recover the ill-gotten monies of these leaders before asking the international creditors to cancel their debts. Present leaders should also examine themselves and repatriate all their monies and that of their cronies, kept in foreign banks, including all their government officials, who are stacking their ill-gotten wealth abroad. Corruption in government circles should also be a priority to be tackled seriously as another condition for debt relief.

The ordinary people of these countries applying for debt relief are also demanding that, serious and effective probity and accountability within their governments, and not lip service, should be another prerequisite for debt relief.They want to see their monies, stolen by their former and present political leaders and kept in foreign banks returned to them and those found guilty brought to book and punished to deter future offenders.

They also demand to see effective measures that are taken to prevent further capital flight in this on going century and that also of loans and donor monies negotiated for their countries, really go to benefit the ordinary person.

The only problem of Africa for that matter, is a moral factor. Greed by the leaders to satisfy their egos, for lack of self confidence, at a very high cost to the people.Africans of today need to be selfless, sacrificial and patriotic to their respective nations and all things shall be added unto them, including good governance and good management.

It is long overdue, that African leaders prove to the World that, the blackman and for that matter, the African is capable of managing his own affairs. This should be a challenge to the present leaders of Africa to vindicate Dr Kwame Nkrumah.

I write you the truth; 'Do not be deceived, God is not mocked, for whatever soweth, that shall he also reap.' Galatians 6:7

This article was originally written in 1999. Samuel Donkor, mob:0242 809352