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Adventurer · Joined: 28 Jan 2006

US cancels Liberia's $391m debt

Condoleezza Rice promises debt relief to Liberia
The US Secretary of State Condoleezza Rice has promised to write off $391m (�200m) in debt Liberia owes to the US.
Speaking at a World Bank conference, she told Liberia's President Ellen Johnson Sirleaf: "We have every intention of helping you succeed."

The World Bank's Paul Wolfowitz opened the conference by saying that Liberia's $3.7bn of debt was unsustainable for a country of three million people.

President Sirleaf warned that Liberia was "not out of the woods yet".

Ms Rice also announced that President Bush had asked Congress to provide more than $200m in additional aid to Liberia over the next year.

A conflict between 1989 and 2003 devastated the West African state and left more than 200,000 dead.

http://news.bbc.co.uk/2/hi/business/6358665.stm

caniff · Joined: 03 Feb 2004 Location: All over the map

Okay, so what's the rub? The evil empire wants an oil pipeline? An air force base? There must be a WHOLE LOT MORE to this story!!

I am sure we'll hear some interesting ideas.

(p.s. That was half joking, and half a serious request for an explanation for why this action has been taken. Could it just be that we knew we weren't getting the money back and decided to get some good publicity out of forgiving this debt?)

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

$391,000,000 out of $3,700,000,000. Something is better than nothing, but 10% isn't all that helpful, is it?

Hater Depot · Joined: 29 Mar 2005

Other countries must have the rest.

If I remember correctly, there was some research done a few years ago that concluded debt relief was an ineffective way to help African countries, since nobody really expected them to pay it back anyway and the freed-up money just got wasted anyway.

Leslie Cheswyck · Joined: 31 May 2003 Location: University of Western Chile

That's mighty white of us.

Adventurer · Joined: 28 Jan 2006

It is simple, Liberia has an American educated economist running Liberia. She is friendly with the United States. Liberia has long had a connection to Liberia, and it is a large source of rubber. Also, in time the U.S. could potentially put bases there. It would be a good way to access West Africa and connect with that part of Africa. It is also good PR for the U.S. government and good for the president of Liberia.

dulouz · Joined: 04 Feb 2003 Location: Uranus

Maybe they are getting ready to send the slaves back again. Its a new Katrina relocation scheme.

Roch · Joined: 24 Apr 2003 Location: Seoul