Cut strings, widen relief, IMF/World Bank urged

ActionAid International Responds to World Bank Communique Today, the World Bank’s Governing Body expressed support for the G8’s proposal to cancel 100% of the debts owed to the institution by 18 of the world’s poorest countries. Here is what ActionAid International had to say: On Debt Romilly Greenhill, Policy Officer, ActionAid International: “These 18 countries have been paying nearly $10 million of their precious revenues to the World Bank each week. So today’s support for the G8 debt deal can only be welcome news. But this is the beginning of the story, not the end. The harmful strings attached to debt relief must be cut, and 100 percent debt relief offered to at least 40 more countries.” “The devil will still be in the detail, and we will be watching to make sure that the deal is not watered down once the media spotlight has faded.” Rick Rowden, Policy Officer, ActionAid International: “Debt relief can deliver badly-needed funds for health and education. But often, IMF and World Bank conditions that come part and parcel with debt relief keep public spending too low to effectively deal with crises such as HIV/AIDS. If we are to really make poverty history, the IMF urgently needs to rethink its low-spending framework.” On Conditionality The World Bank’s Governing Body today accepted the findings of its review of conditionality and agreed to monitor its implementation each year. This follows the G8’s acknowledgement in July 2005 that countries should be free to determine their own paths to development. But ActionAid warned that the review’s findings did not go far enough. Collins Magalasi, Head of Policy with ActionAid Malawi, said: “We welcomed the G8’s recognition that it is local people, not Washington-based bureaucrats, who should determine a countries’ policies. But the G8’s rhetoric does not match the reality. In countries like Malawi, the Bank is still forcing through policies against the wishes of its Parliament and the general public.” Romilly Greenhill, Policy Officer with ActionAid UK, said: “It’s time for the World Bank to take a long, hard look in the mirror. While preaching country ‘ownership’, in practice it is still forcing poor countries’ hands. This review, and the commitment to annual monitoring is the first step. But there must be much more radical changes to Bank conditionality if the G8’s promises are to amount to more than warm words and hot air.” For further details, including comprehensive reports, please visit www.actionaidusa.org ActionAid International is a nonprofit organization bringing relief to some 13 million individuals in Africa, Asia, Latin America, and the Caribbean every year. Working hand-in-hand with 2,000 civil society partners, over 90% of ActionAid's employees hail from developing countries.

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