The Wire

The International Monetary Fund and World Bank trumpeted the debt relief given to third world countries yesterday during World Debt Day but one critic has questioned the relief process. 17 countries have reached their completion points which the two bodies require before debt relief can start. The IMF and World Bank request countries put in place poverty reduction programs, free resources for poverty reduction and restructure their economies. One of the countries to reach the completion point is the African nation of Zambia. To qualify the government agreed to privatise their railway and airport, telecommunications, petroleum, banking, power and copper mining sectors. In return the World Bank and IMF have agreed to relieve Zambia of US$2.5 billion in debt. This amount is less than one quarter of Zambia’s foreign debt and the government continues to receive new loans of US$120 million each year. Vincent Chakulya, a former economist with the Zambian government spoke to Michael Atkin about the impact the debt relief program has had on his country.