Sustained effort from campaigners has meant the cancellation of $37 billion of debt owed by poor countries to the World Bank.
The debt relief is part of a package promised by G8 leaders last summer in Gleneagles.
This package, called the Multilateral Debt Relief Initiative will make a real difference to poor people’s lives in the countries which have qualified for relief. Such a cancellation is a move towards recognising that some countries should have all their debts cancelled.
However campaigners were still keen to point out the limitations of this debt cancellation – there are strings attached.
Countries must comply with damaging conditions – opening up their markets, privatising their services and cutting public services.
Moreover the World Bank cancellation only covers debts up to the end of 2003, unlike the IMF’s cancellation which covered until the end of 2004.
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