African heads of state call for G8 to wipe out debt

AFRICAN Union (AU) heads have adopted a “common position” on asking rich G8 nations to wipe out the debt of all African countries and abolish all agriculture subsidies.

AU spokesman Adam Thiam said the statement, drawn up for presentation at today’s G8 summit, hailed June’s $40 billion (E33.6bn) debt relief package extended by G8 countries to 18 poor countries, 14 of them in Africa.

But he said debt forgiveness “must be applied by all creditors, including the African Development Bank” and that “all African countries must benefit from this measure.”

The statement also called for “the abolition of subsidies that stand as an obstacle to trade” and for the adoption of a calendar for the abolition of these subsidies.

African nations have long complained that the agricultural subsidies accorded by Western governments, notably cotton subsidies granted to US cotton producers, go against the rules of fair trade and keep African producers in a cycle of poverty.

The heads of state also called on development partners to commit to “increasing their aid to 0.5% of their GDP at least by 2010 and to 0.7% of GDP by 2015.” They also called on donors to stop attaching strings to aid.

“The G8 and the international community should commit to granting higher budgetary support to the AU’s peace and security programme,” the statement said, adding that the international community should work in partnership with the AU on the preparation and implementation of post-conflict reconstruction programmes.

Some 40 heads of state have been meeting since Monday for the fifth ordinary summit of the AU.