Pulling on the G-8's G-String

Posted by: Dr. Joseph Ozigis Akomodi

Written by: Miriam Ikunaiye

The group of eight (G-8) has yet, offered another debt relief to ‘poor’ Africa nations. What the rest of the world do not know however, is the legitimacy of the loans, the unreasonable interests and the questionable terms and conditions that governs it. This is how it works; the rich countries coaxed African leaders to take out loans under the pretext of better economy. In reality, it is a bait, for one of the conditions governing the loans is concessions to foreign traders and investors with the aim of “opening” Africa markets.

The truth of the matter is, while rich countries keep their markets closed, African countries are forced to open their markets at breakneck rate, often with damaging consequences. The rules are so manipulated with such high interests that it is absolutely impossible to pay off the loans. In addition to the Agricultural subsidies that already made it immensely difficult for African countries to compete in rich countries’ markets, the imposed “open” market regulation allows the rich countries to continue to skew benefits of the African countries.

The questionable circumstances surrounding much of Africa’s debt qualifies the loans as illegitimate. The original loans as it stood, has been repaid in folds, the continue existence of a debt is as a result of high interest and unfair condition imposed by creditors. Also, the debt is contracted and squandered by corrupt governments, which should be considered stolen wealth, hence audios debt.

As it is, terms of trade with the developed countries is not in favor of Africa, not surprising that after 200 times of debt relief and over fifty years of aids, grants and donations to Africa for poverty alleviation, hunger and better economy, the continent continues to witness more hunger than ever before. It is unarguable that at the 25th century, Africa remains the least developed, poorest and most technologically backward. If at all the international aids had had any nominal effect, it is, boosting the living standards of those already comfortable –corrupt African leaders.

By the early 1990s Africa’s foreign debt grew to four times its export income, then, the All-Africa Conference of Churches called the massive foreign debt burden "a new form of slavery, as vicious as the slave trade." To continue to facilitate such unserviceable loans that clearly, are not without impoverishing a country's people is illegitimate, immoral and Western-style robbery.

In light of the above, the non functional international aid and the debt relief fiesta has a string attach to political propaganda plus, it is to help present Africa as the poor box so no one would keep tab on bilateral trade ineffectiveness –who will steal from the poor? Some may ask.

What African people deserve from G-8 instead is an honest strategy for trade fairness and not economic hostage by the developed countries. African people also deserve an investigation into the processing of the loans and circumstances under which the debts were incurred. To ensure future government accountability and transparency on the lenders’ side, leaders of the repressive regime under whom the loans were incurred should be brought to international court of law for embezzlement by the G-8 or the lender government.

Unless better measures other than debt relief is taken under the guard of Africa initiative, sooner than expected, we shall yet watch but with cynicism, another show of political craft go on display in Gleneagles or ‘Glenmonopoly’ at the expense of ‘poor’ African nations. Thus, taking credits for all-is-well proposals that obviously lacks all the ingredients for effectiveness.

By Miriam Ikunaiye