- Eliminate all HIPC Debt - Salvatore Vuono
HIPC is the acronym for Highly Indebted Poor Countries. These are countries that have borrowed money beyond their capacity to pay it back. Disease and starvation are rampant in a country with high debt rates. Working to eliminate all HIPC debt can benefit the lender, the debtor in the long run and the country's people. When debt is paid down the country leaders can focus on developing a workforce to attract corporate investors.
How to Eliminate HIPC Debt
Increase grants. As other nations increase the money provided to Highly Indebted Poor Countries, the need for the HIPC to borrow money will be reduced. Increasing grants targeted for specific uses within the HIPC coupled with increasing debt forgiveness will help to eliminate the HIPC debt all together.
Increase debt forgiveness amounts. Increasing the amount of debt each country is willing to forgive will lower the countries monetary stress and allow more funds to be placed back in the communities where they are needed. These funds can be used to build schools, bridges, roads and other infrastructure.
Provide legal support and assistance to poor countries to help protect them from lawsuits brought about by commercial creditors who have not enrolled in the commercial credit program.
Why is Debt Cancellation Important?
Debt accumulates at rapid paces. Some people argue richer countries loaned money to dictators of these poor countries during the Cold War in return for their allegiance in political matters. Now their people have to pay for the decisions of their dictators. Thought the dictators and their regime are no longer in power, the poor countries are left to pay the debt.
Reducing debt is the single most influential factor to raising a nation out of poverty. When nations provide debt cancellations the poor country increases social spending by twice as much.
Who are the HIPC's?
Countries who are either already on the list of Highly Indebted Poor Countries or who may be placed on the list after decisions are made are: Central African Republic, Comoros, Côte d’Ivoire, Eritrea, Liberia, Somalia, Sudan, Togo, Benin, Burkina Faso, Cameroon, Ethiopia, Ghana, Madagascar, Malawi, Mali, Mauritania, Mozambique, Níger, Rwanda, Senegal, Sierra Leone, Tanzania, Uganda, Zambia, São Tomé and Príncipe.
Conclusion
The Highly Indebted Poor Countries have tremendous amounts of hunger and poverty. Past dictatorships in these countries have helped keep the citizens slaves to poverty. Once the country has had all HIPC debt eliminated they can begin to spend more money on social programs to help the people of their country.
References: HIPC Debt Strategies
Jennifer Terry - Jennifer Terry has worked to promote self-determination and consumer education for 10 years. She has been writing since 2004 and has been ...
