Bono, Bob and the €33bn debt write-off

TWO Irish rock stars put Third World debt centre stage - and cast a cold spotlight over how countries, including Ireland, treat the world’s poorest.

Boomtown Rat Bob Geldof and U2 frontman Bono scored a major victory in precipitating the weekend move by the G8 to cancel the debts of 18 African nations.

But they were joined by aid agencies in warning that the historic step was just the first of many needed to wipe out global poverty. “It’s not just about mouthy rock stars,” said Bono, who urged no let-up in support for the Make Poverty History protest march at next month’s G8 summit in Scotland.

“We have to give our politicians our permission to spend our money.”

The success of the two rock stars turned anti-poverty campaigners in embarrassing the leaders of the world’s eight richest countries into signing the debt write-off deal has thrown the policies of other wealthy nations, including Ireland, into focus.

Bono called on Taoiseach Bertie Ahern to renew his pledge to commit 0.7% of the country’s annual wealth to developing countries. That promise was to have been honoured by 2007 but the target date is now set for 2015.

The singer urged Mr Ahern to use this week’s top level summit of European Union leaders in Brussels to reset his sights on an earlier deadline.

That call was echoed by the chief executive of Concern, Tom Arnold, who said the Government should harness the weekend’s breakthrough to drive the EU’s commitments.

“Ireland’s position on this has been quite progressive but we can not maintain our credibility or keep up the pressure unless we put our money where our mouth is,” he said.

“Achieving the 0.7% target would be the single biggest indicator that we are serious about eliminating poverty.

“We should recommit to that target by the earliest possible date, 2010 at the latest, and we need a clear plan for how we will reach that target in that time.”

Caoimhe de Barra, policy analyst with Trocaire, said Ireland should also act as watchdog to ensure the 18 countries to benefit from the weekend deal would not pay for the waiver in loss of aid.

“There is a long and dishonourable tradition of G8 leaders promising debt relief and taking money from aid budgets to pay for it. Our big concern is that essentially this will be another smoke and mirrors event,” she said.

She added that the list of 18 did not necessarily represent the countries in the most dire poverty but those who it was felt would put their waived repayments to best use.

“There is a risk that you will see a two-tier system where certain countries will be donor darlings and others will be donor orphans. That’s our job here in Ireland - to make sure that those countries that are in danger of becoming orphans are not forgotten.”

Overseas Aid Minister Conor Lenihan last night welcomed the deal and said it should be followed up with trade concessions and improved aid flows.

But it was dismissed as a “con job and cop-out” by John O’Shea, the director of GOAL, who said some of the 18 would use their freed up cash to buy weapons, benefiting only Western arms dealers.

Mr O’Shea criticised the inclusion of Ethiopia, where government troops shot dead scores of student protestors last week; Uganda, where President Museveni has held power for 20 years through vote-rigging and has failed to halt a bloody civil war fought by child soldiers; and Tanzania, Rwanda and Zambia which have stoked savage inter-ethnic violence in the neighbouring country, Congo.

“We’re saying this money saved is to be spent on health and education when we know it’s going to countries that are institutionally and endemically corrupt. It’s a much easier gig to write off a debt than commit troops to protect women and children from slaughter.

“It’s cowardly of Western governments and it’s naive of us if we believe them.”

Debt deal

What was agreed:

* Debts totalling €33bn ($40bn) written off for 18 African countries.

* They will save a total of €1.2bn ($1.5bn) in repayments per year.

* Money saved is to be spent on health and education.

* Nine more African countries to qualify for same waiver within 18 months.

* That will write off €12bn ($15bn) more - a long way off Africa’s total debt of €250bn ($303).