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Debt relief’s bet is not on violent
revolutions
E. Ablorh-Odjidja, a reprint from ThisWeekGhana
Reacting to the momentous decision by the G8 to rid Ghana and 17
other African countries of their crippling foreign debt for
good, President Kufuor noted that "We opted for the HIPC
Initiative in 2001 to allow us breathing space to recognize our
priorities and this is the reward."
In 2001 the term HIPC was derisive because some reasoned that it
was too much of a put down. Ghana was too proud a country to be
labeled as such. We had gold. We had rich resources. We couldn’t
possibly be described as “HIPC;” meaning a Heavily Indebted Poor
Country.
True, we had rich resources and still do, but the facts on the
ground were different in 2001. We had been broke for a long
time; through the various administrations of Rawlings. Only
hubris, excessive pride, prevented us from realizing that we
were broke.
The previous administration had to put up appearances and was
aided amiably in the 90s by the World Bank that was desperate to
describe Ghana as a success story. It was only after the Kufuor
administration came to power that the truth became glaringly
apparent.
On Saturday June 11, 2005, G8 finance ministers agreed on debt
relief for 17 HIPC countries in Africa and others. The World
Bank, the IMF, and the African development Bank would forgive
the debt owed to these countries. The next 20 countries on the
list “could qualify for debt cancellation if they meet targets
for good government and corruption-fighting,” the G8 said.
It will help to note that the debt forgiveness comes close on
the heels of the June 4 celebrations in Ghana; a remembrance of
a coup on that date by Flt. Lt. J. J. Rawlings. Now wonder what
June 4 was all about!
Describing the debt forgiveness on PBS’ Jim Lehrer News Hour
television show in the US, George Ayittey of Free Africa
Foundation said the package was “a step in the right direction.”
“Everybody knows that Africa is in a very deep crisis. ….
“Ayittey said.
“It doesn't address Africa's long-term fundamental needs and how
to put Africa on the right track to development. What Africa
needs to do is to grow out of debt. What this does is simply
stabilize the situation.” He continued.
Indeed, HIPC has stabilized the economic platform. It is time
for take-off. But the rest is up to Africa.
While others saw derision in the “HIPC” designation, Kufuor was
quick to recognize the opportunities presented by it. The
Economist, describing the opportunities said “In total, the
agreement could be worth more than $55 billion” to Africa.
Of this amount, some $4.1 billion dollars will accrue to Ghana’s
coffers. Now, there is not much to deride. There is cause for
celebration – and laughter – all the way to the bank.
But caution. We may be celebrating too early. Misery dies hard
and some may not find pleasure in the debt forgiveness. Some may
even be disappointed that it has happened; that it didn’t happen
on their watch. After years of grousing about the mismanagement
of our affairs, they will not sit still for someone to spoil
their disgruntlement!
Another caution to
those who could also spoil this
sudden windfall in a different way: Those
who would abuse the
treasury, or give reasons for the cries of mismanagement to
continue and the “Wahala” marches to persist.
Ghana has a fairly decent government now. That’s what the debt
forgiveness grant recognized and therein lies the achievement
that has to be applauded; the lifting of this heavy debt burden
from the nation’s shoulders.
You will recall Kutu Akyeampong recognized the injustice
inherent in the debt burden of a nation during his regime in the
70s. But in a simple way which allowed no intellectual
explanation, Akyeampong resorted to his own action and said in
the vernacular, “Yen tua,” meaning “We won’t pay!” There was
some severe retribution from various quarters.
Then in the 90s, George Ayittey followed with the missing
intellectual explanation that Akyeampong lacked. He described
the debt as “Odious Debt,” and went on to explain why. His
argument was sound intellectually and ethically. But, of course,
the professor was not in a position to cancel debts. To do so
required sovereign authority and only a political decision could
bring it about.
It was Kufuor’s turn to unravel the puzzle that was the debt
burden. Rather than simply saying “Yen tua,” he took a chance on
the confluence of events that made the debt forgiveness
possible. His decision in 2001 has resulted in a 100%
forgiveness of debt; the biggest in Ghana’s history and a proud
legacy for him.
Kufuor’s election victory in 2000 and re-election in December
2004, “marked the country's first-ever democratic transfer of
power” in Ghana, an American paper remarked.
On the recent visit to Washington to accept the debt forgiveness
package, Kufuor appeared in the White House with George Bush;
along with Presidents Pohamba of Namibia, Guebuza of Mozambique,
Mogae of Botswana, and Tandja of Niger.
"We believe by removing a crippling debt burden, we'll help
millions of Africans improve their lives and grow their
economies," Bush said. The United States, by the way, is the
biggest economic aid giver to Africa in the world.
In describing the efforts the five African presidents have made
to earn the package, Bush also said " these leaders have made (a
strong statement) about democracy and the importance of
democracy on the continent of Africa."
For our pride, Ghana has been mentioned or spotted on the
forefront of the fight for democracy in Africa. Of course, one
can argue that Ghana is not a stronghold for democracy yet, but
one cannot deny that it is certainly on its way to become one.
E. Ablorh-Odjidja, Washington, June 15,
2005
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