Group of 7 Agrees to Ease Debt Burden of the Poor

The world's richest countries agreed formally for the first time on Saturday to pursue a 100 percent write-off in the $70 billion debt owed by the poorest nations to big institutions like the World Bank. But, at a meeting of finance ministers from the so-called Group of 7 major industrialized countries, they failed to resolve differences largely between Britain and the United States over plans to raise an extra $50 billion a year in aid to lift African nations in particular out of poverty. This year Britain is the leader of the richest countries - the United States, Britain, Canada, France, Germany, Italy and Japan - whose presidents and prime ministers meet along with Russian leaders in Scotland next July. The British hosts want the meeting to endorse a plan to relieve African poverty with the same broad sweep and effectiveness as the Marshall Plan after World War II. They are trying to push the issues of African debt and poverty to the top of the agenda. But unanimity is proving elusive, despite an appeal Friday for action by Nelson Mandela, the former South African president. "Do not delay while poor people continue to suffer," said Mr. Mandela, who had compared the fight against poverty to the battles against slavery and apartheid. In a communiqué after their two-day meeting, the Group of 7 noted that individual member countries had "significantly reduced" the bilateral debt owed by 27 of the world's poorest and most indebted nations to individual creditor nations. "However, we recognize that more still needs to be done," the statement said, promising "our willingness to provide as much as 100 percent multilateral debt relief." [more]

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