PUSH FOR TOTAL CANCELLATION OF AFRICA’S DEBTS - SAYS GHANA’S HIGH COMMISSIONER TO THE UK

Ghana’s High Commissioner to the UK , H.E. Mr. Isaac Osei has called on the Jubilee Debt Campaign to go beyond their mandate of seeking relief from debt payments and servicing to push for the total cancellation of debts of African countries.

He said this would enable African countries to start a new relationship with the developed countries under the New Partnership for African Development (NEPAD) initiative on a clean slate. Mr. Isaac Osei made this call in an address he gave at the Jubilee Debt Campaign’s annual general meeting in London.

The Jubilee Debt Campaign UK is a coalition of various non-governmental organisations canvassing for debt relief for the world’s poorest countries through fair and transparent processes.

He said there was no way most of the world's poorest countries could pay their debts and added that the massive and unsustainable external debt remained a major obstacle to growth "

" It deters private investment, threatens the sustainability of reforms, disrupts the smooth functioning of the state and calls into question the very survival of some poor countries' economies" he added.

Mr. Osei stressed that the challenge facing the international community was how to deepen global integration, without impairing the interest of poor countries and argued that it was in the long-term interests of the rich countries of the north to offer the rest of the world the opportunity afforded by economic integration, just as it was in the interest of poor countries of the south to exploit them".

This, he said, could be done by a combination of debt cancellation, increased aid and freer trade and gave two reasons why the rich countries should assist the poor countries.

First is the slowing down of the world economy exacerbated by the terrorist attack on September 11 and second the need for reformers in the poor countries to deliver on their electoral promises.

Touching on efforts being made to resuscitate the Ghanaian economy, Mr. Isaac Osei told his audience that the Government had finalised the preparation of the Ghana Poverty Reduction Strategy (GPRS) for 2002-2004, with greater emphasis on participation of key partners, including civil society, the media, private sector, all arms of government, development partners as well as decentralized agencies.

He said the priorities over the period are centred on infrastructural development, modernised agriculture based on rural development, enhanced social services, good governance, private sector development and poverty reduction with a view to the creation of wealth at a faster rate in order to reduce poverty in a sustained manner.

The High Commissioner pointed out that the bold economic reforms introduced by the government had made Ghana become one of the first countries to reach decision point under the HIPC initiative in less than a year.

On his part, Dr. Ashok Sinha, Coalition Co-ordinator of the Jubilee Debt Campaign, thanked the High Commissioner for his incisive presentation and urged the Government of Ghana to vigorously pursue the on-going current reforms to reduce poverty in the country.

ISSUED BY THE

GHANA HIGH COMMISSION, LONDON.

28TH MARCH 2002