Interviews

THE G8 AFRICA AND - Debt Cancellation: How Does it Benefit Africa?

The July 2005 G8 Summit at Gleneagles, Scotland, had been preceded by the decision,  a month earlier, by G8 Ministers to cancel debts owed the World Bank, the International Monetary Fund and the African Development Bank by 18 poor, developing countries which had already satisfied HIPC conditions. 

It has been suggested that the June decisions and those at the Gleneagles summit that not only endorsed but also expanded them, had been prompted by the strong advocacy for more aid to Africa mounted by the British government's Commission for Africa (CFA). "Africa," said British Prime Minister Tony Blair, "is a blot on the conscience of the West." And he is known to have used every opportunity, as host of the 2005 G8 Summit and President-in-waiting of the European Commission, to press for debt cancellation and for more aid.

So it was to be expected of Gleneagles to adopt a number of the recommendations of the Commission for Africa, and even though Mr Blair was not fully satisfied with the exclusion of many CFA recommendations, he was not totally disappointed by what he got.  As British High Commissioner in Ghana, Gordon Wetherell, is happy to note, as many as 50 CFA recommendations were translated into commitments at the Gleneagles G8 Summit. But not everyone was happy with the Gleneagles decisions. A number of international pressure groups which had been calling for total debt write off for all poor countries, have made strident criticism of the Summit decisions, saying it provides only 10% of the relief needed, covering only a third of the countries that needed it. Even more others were ready to dismiss the Gleneagles Summit as unsuccessful, for the reason that the decisions only affirmed existing decisions on debt cancellation - a clear reference to the June 11, 2005 decision.The British Prime Minister, who had used his high profile international leadership position to promote total debt cancellation, was ready to accept what was attained at Gleneagles, noting that in international negotiations one does not always get what one wants. And High Commissioner Wetherell in Accra notes that Britain "made progress in all the areas, many of which went beyond what we might have expected at this time last year." Mr Wetherell is quite pleased that Ghana is to be a beneficiary of debt relief and enhanced aid. But he advises that  to be able to make effective use of aid, Ghana needs to embark on the complex, slow process of strengthening the ability of its public service to implement government policies. He describes Ghana as an "important beneficiary that is relatively well aided, compared with other African countries. Ghana's economic policies," he says, "have led to strong economic growth and its governance is steadily improving." But if it's to make effective use of increased aid flows, then "Ghana needs to make real progress in improving public service capacity and public financial management, in  particular."  

Despite the London bombings towards the close of the Gleneagles G8 Summit last July, the outcome of this conference has been recognised as of immense significance to the economic development of the world's poor countries. Mr. Gordon Wetherell,  High Commissioner of the UK, host of the G8  conference, provides some insights into the Gleneagles  decisions and the recommendations of the Commission for Africa that informed some of the decisions  

THE WORLD DIPLOMAT: What, in your view, were the most important decisions that came out of the G8 Summit in Gleneagles?

Gordon Wetherel: Prime Minister Tony Blair said in January (2005) that the G8 summit would focus on two main priorities, Africa and Climate Change. And despite the London bombings, Gleneagles delivered significant steps forward under both these broad themes.On Africa, the Summit built on decisions taken at previous G8 summits. But it moved the agenda forward in two key ways: G8 leaders agreed to take a comprehensive approach to development and emphasised the importance of partnership and mutual accountability in supporting Africa's own efforts to achieve the Millennium Development Goals. The result is a stronger partnership, with clear commitments on both sides on how to achieve poverty reduction and economic growth, invest in health, education, tackle AIDS, promote good governance and democracy and work for peace and stability. These were important decisions to come out of Gleneagles. But if I had to choose specifics I would welcome, in particular, the decisions on aid (an additional $50bn globally and $25bn for Africa by 2010); on debt relief  (a solution worth up to $55bn for 38 of the poorest countries); and on trade (we endorsed our political commitment to ambitious outcomes at the Doha Ministerial in Hong Kong and committed to provide increased assistance for building the capacity to trade).  

T.W.D.: Did the UK Government, which hosted the meeting, feel that more could have been achieved?

G. Wetherel: As Prime Minister Tony Blair said, in international negotiations you don't always achieve everything you want. But I think you will agree that we made real progress in all the areas outlined above, many of which went beyond what we might have expected this time last year.  I think the focus on Africa and poverty issues this year, through the UN and its preparations for the Millennium Review Summit, the consultations and report of the Commission for Africa, the Live 8 concerts in G8 countries, and the Make Poverty History/Global Call for Action Against Poverty campaign, all helped to achieve this outcome. The task now is to ensure that the commitments made by the G8 and African leaders at Gleneagles are acted upon. 

T.W.D.: In view of the formal winding up of the Commission for Africa at the end of July, what is being done to ensure that the many recommendations of the report  included in the Gleneagles communiqué are effective?

G. Wetherel: It is significant that 50 recommendations from the Commission for Africa were translated into commitments at the G8 summit. At Gleneagles, the G8 reiterated the importance of the Africa Partnership Forum in monitoring implementation of commitments to ensure they are effective. The Africa Partnership Forum is attended by representatives of both African and donor countries. There is also representation from the European Commission, the United Nations, the International Monetary Fund, the World Bank and NEPAD. The G8 texts recommended that the forum should be strengthened.  We also proposed that a joint action plan wider than just the Gleneagles commitments be created, against which it would be possible to measure progress.   As one of the co-chairs, the UK is working with its partners - including Ghana - to prepare for the next Africa Partnership Forum in October.        [back]

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