Debt Forgiveness etc.

Nicholas Newman writes "...All debt forgiveness or rescheduling does is to delay the day when such countries will need to make the painful process to reform their economic, governmental and political systems. The 1996 World Bank Report argues “Aid may have unintentionally encouraged misrule that led to collapse and civil conflict”. Almost all civil governance and public development in Africa is paid for by foreign aid, enabling African despots to wage wars on their neighbours...Did you know debt forgiveness or rescheduling increases the cost of future borrowing - as such a process worsens the credit rating of such a state. Indonesia has rescheduled three times and the cost of borrowing has gone up each time. That explains why many third world states including Laos and Vietnam are against such proposals reports the World Bank..."
via OxfordBlog