Debt relief for poor countries

Debt relief for poor countries

The leaders of the G-8 major countries waived all repayments of loans in official development assistance and largely increased the number of countries benefiting from the write-offs.

Japan, a large creditor nation in yen loans, resisted the plan on the grounds that nations should repay their debts.

But Japan's opposition was overcome by the drive waged by social democratic governments in Europe, which were backed by non-governmental organizations.

Larger questions remain. How will poor countries take advantage of the reduction in their indebtedness and how will they invite capital in the private sector of their economies? Unless such questions are discussed and answered, the write-offs could drain the debtor nations' self-reliance.

-- The Asahi Shimbun, Tokyo