Aid agencies worldwide are responding to the crisis in Haiti. It’s typical of Christian Aid that it is looking beyond the immediate crisis and addressing the underlying issues that have helped create the crisis that country faces.
As a result it is calling for full cancellation of Haiti's debt of $890m, and for all emergency and development funds to be given not loaned. Please sign Christian Aid’s petition now.
Haiti currently owes $890m, owed mostly to the International Monetary Fund (IMF) and the Inter-America Development Bank. Christina Aid argues that this is unacceptable. And while the World Bank’s announcement on Friday that it will waive repayments for five years marks welcome progress on this issue, what Haiti needs from the Bank and the IMF is concrete commitment that all its debts will be cancelled in full.
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Can’t argue with that. This is also a real test of Obama’s mettle: if ever there was the chance to do the right thing Haiti is such an opportunity. What is striking though, is how, in the scale of things, $890m is such a small amount.
Let’s get this right.
$890 million feels like a ridiculously low number in the context of sovereign indebtedness (on a day where Greece printed a $15 billin bond issue).
The usual arguments against debt forgiveness (moral hazard, etc.) don’t seem to be relevant in Haiti’s case. I really hope this goes through.
Fair enough in this casde, but Christina Aid, whoever she is, is being a bit disingenuous. Haiti is already a large aid receipient with foreign aid making up over 30% of the government funding. Unfortunately Haiti has suffered from a series of highly corrupt governments. The development loans outstanding represent a small fraction of the aid that has been given by the US, Canada and the EU, but have been a way to try to hold governments to account. Development loansd can be useful because they represent a greater amount of funding than would be available than woulkd be available simply as aid.
@Alex
Where did the proceeds of corruption go Alex? Western banks.
Who helped them? Accountants and lawyers
How was it routed? Through tax havens
How could it happen? Because of secrecy
Defend the role of each
Say how it could be stopped
Please do so now
Richard,
In the case of Haiti you might find the blame lies squarely at the feet of an onshore jurisdiction rather than any “tax havens”.
@mad foetus
It always ends onshore
But as you well know offshore disguises the mechanism for getting it there
As you also know – offshore is all a sham
I did, but you deleted my reply.
@Alex
Well if I did so it must have been because you
were way off target