G8 agrees to $40B debt deal for poor countries
 

I don't think it will help that much as most of these countries...if not all...are rife with corruption...and will soon be in debt again.

See it this way, it's a great goodwill move from G8. Not like they were gonna see that money ever again...

And the first thing they will do? Spend more money ...

"We can expand health and education services with this relief," said Daudi Balali, the governor of Tanzania's central bank. "We will also be able to expand our infrastructure."

That would be the idea of clearing debt.. it gives them the chance to build.. they've just gotta do it right.

I take it back. I didn't realize Tanzania has employed Hernando de Soto's group as consultants and are implementing his ideas. I read "The Mystery of Capital". Excellent book.

I think you are correct...on both points.

Fact of the matter is that America is as corrupt as most of these poor countries.

Having a healthy and educated workforce along with a solid infrastructure is the only way they'll be able to make it on thier own long term.

:2 cents:

The have so start with stuff like education and healthcare... :2 cents:

agree with ya 100%
not like they'd see any poenny of it
so write it off as goodwill gesture
and same time.. world bank doesn't charge tjhem intrest or anything
cause once again.. not like as if they'd see it anyways

Where do you get that "fact" from? "Transparency International", a German based group ranks countries according to the level of corruption. The US is ranked very low in corruption. In the bottom 15%.

It is less costly to operate extralegally than it is to operate legally in these countries. In the US, if you want to purchase a property or apply for a business license you can own it in about a month. In many of these countries that same process can take years - if ever. As a result, people resort to bribing local officials. This is the result of poor legal and judicial institutions.

It's not about people being more or less corrupt but rather systemic corruption which is a function of how well the legal system reflects the needs of people and businesses. Many of these nations are so corrupt that it hampers with the capitalistic process.

As corrupt as a country may be, much of this debt is from thr World Bank and the IMF, so, in order for the country to go into debt 'again' it would be because they took on more loans, which is at the discretion of the lending party and has no relation to the degree of corruption.

China and Russia have two of the most corrupt economies in the world, and yet this has little bearing on their international debt and/or ability to function economically.

Ahem. Where did that IMF loan to Russia disappear to again?