Post by Said1 on Sept 26, 2005 7:52:43 GMT -5
World Bank, IMF Agree on Debt Relief, Turn Attention to Trade
rld Bank, IMF Agree on Debt Relief, Turn Attention to Trade
Sept. 26 (Bloomberg) -- The World Bank and International Monetary Fund concluded their annual meetings yesterday with an agreement to write off as much as $57.5 billion in debt to ease the burden on impoverished countries. They then immediately turned attention to the next priority for those nations -- global trade.
The debt-relief package, an endorsement of the initiative agreed to by the Group of Eight major industrialized countries in July, would wipe out the debts that the poorest of nations owe to the World Bank, IMF and African Development Bank. The proposal is being sent to the executive boards of those institutions for final approval, World Bank President Paul Wolfowitz said.
``This is a moment of real opportunity,'' Wolfowitz said at a briefing yesterday alongside IMF Managing Director Rodrigo de Rato. ``The path to complete debt relief has now been cleared.''
As many as 38 nations may be eligible for 100 percent debt forgiveness, the majority of which are in sub-Saharan Africa.
Immediately following the announcement, Wolfowitz said debt relief is only one step in the process and that developing nations still need better trade laws in order to compete and expand their economies. He stressed the importance for progress at the World Trade Organization meetings in Hong Kong this December.
``Even more important than'' increased aid and debt forgiveness ``is the need for a comprehensive trade agreement,'' Wolfowitz said. ``We have agreement on more aid, we have consensus on debt relief, now let's complete the picture and deliver a true development round on trade.''
The 148 member nations of the WTO have been trying since 2001 to reach a new accord that would update rules for global trade -- including limiting import tariffs and export subsidies.
Trade Barriers
Finance ministers for developing nations such as Brazil and Nigeria called on the richest nations to drop their barriers to agriculture exports and end farmers aid if they are serious about helping the poor in Africa, Asia, and Latin America.
Brazilian Finance Minister Antonio Palocci said trade and access to markets is ``more important than external aid,'' and called on the wealthy nations to agree to cut tariffs at the WTO meetings. The comments were made in statements presented to the World Bank's policy-making committee in Washington yesterday.
``Failure to deliver a deal in Hong Kong is just not acceptable,'' South African Finance Minister Trevor Manuel said. ``There must be an intensification of the efforts.''
Finance ministers from the Group of Seven industrial nations -- the U.S., U.K., France, Italy, Germany, Japan, and Canada -- held a summit this weekend in Washington as well, focusing their attention on risks to the world economy such as energy prices.
The G-7 ministers pressed for nations to let markets play a main role in setting exchange rates and called for greater cooperation in addressing energy supply problems.
At the conclusion of their meeting on Sept. 23, the G-7 countries plus Russia made a rare move by sending a letter to Wolfowitz urging the World Bank to endorse their debt relief plan and offering additional financial commitments
rld Bank, IMF Agree on Debt Relief, Turn Attention to Trade
Sept. 26 (Bloomberg) -- The World Bank and International Monetary Fund concluded their annual meetings yesterday with an agreement to write off as much as $57.5 billion in debt to ease the burden on impoverished countries. They then immediately turned attention to the next priority for those nations -- global trade.
The debt-relief package, an endorsement of the initiative agreed to by the Group of Eight major industrialized countries in July, would wipe out the debts that the poorest of nations owe to the World Bank, IMF and African Development Bank. The proposal is being sent to the executive boards of those institutions for final approval, World Bank President Paul Wolfowitz said.
``This is a moment of real opportunity,'' Wolfowitz said at a briefing yesterday alongside IMF Managing Director Rodrigo de Rato. ``The path to complete debt relief has now been cleared.''
As many as 38 nations may be eligible for 100 percent debt forgiveness, the majority of which are in sub-Saharan Africa.
Immediately following the announcement, Wolfowitz said debt relief is only one step in the process and that developing nations still need better trade laws in order to compete and expand their economies. He stressed the importance for progress at the World Trade Organization meetings in Hong Kong this December.
``Even more important than'' increased aid and debt forgiveness ``is the need for a comprehensive trade agreement,'' Wolfowitz said. ``We have agreement on more aid, we have consensus on debt relief, now let's complete the picture and deliver a true development round on trade.''
The 148 member nations of the WTO have been trying since 2001 to reach a new accord that would update rules for global trade -- including limiting import tariffs and export subsidies.
Trade Barriers
Finance ministers for developing nations such as Brazil and Nigeria called on the richest nations to drop their barriers to agriculture exports and end farmers aid if they are serious about helping the poor in Africa, Asia, and Latin America.
Brazilian Finance Minister Antonio Palocci said trade and access to markets is ``more important than external aid,'' and called on the wealthy nations to agree to cut tariffs at the WTO meetings. The comments were made in statements presented to the World Bank's policy-making committee in Washington yesterday.
``Failure to deliver a deal in Hong Kong is just not acceptable,'' South African Finance Minister Trevor Manuel said. ``There must be an intensification of the efforts.''
Finance ministers from the Group of Seven industrial nations -- the U.S., U.K., France, Italy, Germany, Japan, and Canada -- held a summit this weekend in Washington as well, focusing their attention on risks to the world economy such as energy prices.
The G-7 ministers pressed for nations to let markets play a main role in setting exchange rates and called for greater cooperation in addressing energy supply problems.
At the conclusion of their meeting on Sept. 23, the G-7 countries plus Russia made a rare move by sending a letter to Wolfowitz urging the World Bank to endorse their debt relief plan and offering additional financial commitments
Continued @ www.bloomberg.com/apps/news?pid=10000086&sid=aZe324Yeu7Mg&refer=latin_america
