UK Primeminister Tony Blair and his Finance Minister, Gordon Brown, Wednesday faced veiled warnings that their drive to bring relief to the poor of Africa will founder unless they quickly persuade other rich economies to back more aggressive steps, the World Bank press review reports.
In a hard-hitting joint report, the World Bank and International Monetary Fund said that “bold and urgent action” by wealthy nations was now needed if the Millennium Development Goals under which they pledged to end extreme Third World poverty by 2015 were not to be missed.
In a blunt message that the standing of Blair and other leaders from rich countries is on the line, the Banks outgoing President, James Wolfensohn, said that “the credibility of the entire development community is at stake as never before.”
Wesnesday, senior World Bank and IMF officials conceded that there were doubts over whether tangible progress towards boosting aid, debt relief and other development efforts would be now achieved in time for July’s G8 summit of the Group of Seven leading economies and Russia, to be hosted by Tony Blair at Gleneagles.
Blair has put the delivery of relief to Africa at the heart of his agenda for Britains G8 presidency this year. But with just three months left until the leaders gather, UK efforts to reach a deal on concrete measures that can be signed off at the summit are bogged down in disagreement between the countries, notably with the Unites States, notes the news report.
Wolfensohn has stepped up pressure for the G7 countries to resolve their differences and agree on action. – Rich countries must now deliver on the promises they have made in terms of aid, trade and debt relief, he said. He added that developing countries, especially in sub- Saharan Africa, also needed “to aim higher and do better in terms of their own policies and governance, and to make more effective use of aid.”
Some officials at the IMF and World Bank are concerned that Britains general election battle may distract Blair and Chancellor of the Exchequer Gordon Brown from their commitment to the development effort.
Officials in Washington expect that Brown will cut short his usual lengthy talks with fellow finance ministers and senior policymakers at the IMF and World Bank meetings in the US capital this week. A curtailed presence at the talks could impede Browns ability to push for faster progress on the UKs development agenda.
Meanwhile, Wolfensohn said Wednesday an agreement to relieve the debt burden of the globes poorest countries probably will not be finalized at this weekends meetings of finance officials from the worlds richest countries (G7), as well as meetings at the 184-nation World Bank and the International Monetary Fund.
Wolfensohn said he was confident an agreement would emerge later this year, perhaps at a conference of world leaders in July. – The sticking points are just differences in approach. It is not malicious, Wolfensohn declared.
The United States and Britain have competing proposals for expanding debt relief, and they differ in their details, especially how it would be financed.
A G7 source played down the likelihood of agreement on debt relief and development aid issues at this weekends meeting, taking place just before the International Monetary Fund and World Bank spring meetings.
But the source said he believed the meeting of heads of state from the Group of Eight nations scheduled for Scotland in July may bring a change of heart. – The pressure will really be on there. I think you may see concessions all round, he said.
Canada will push this weekend at meetings in Washington of G7 finance ministers and the International Monetary Fund for greater debt forgiveness for Africa, a senior Canadian official said Wednesday.
To encourage other countries to follow suit, Canada announced Wednesday it was completely canceling debts owed to it by two African countries (Zambia and Rwanda) as well as Honduras. The Ministry of Finance said the total value of this debt cancellation was 41 million US dollar, with Zambia accounting for the lions share of 31,3 million.
Kilde: www.worldbank.org
