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Neil Watkins

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Also, civil society must stay vigilant because the details of the deal will be worked out over the upcoming weeks at the IMF and World Bank boards. What we have right now is only a broad agreement; the finer details are what will matter.

As world leaders gather in New York, we are still decades away from meeting the modest Millennium Development Goals to halve extreme poverty. A critical tool for achieving these goals is debt cancellation. A recent study by U.K. charities found that at least 62 low-income nations would require full debt cancellation -- in addition to more aid and trade justice -- as a first step towards achieving the goals.

Debt service drains money away from social spending and HIV/AIDS drugs. But under the Bank's proposal, Malawi would wait until July 2007 to see desperately needed relief, more than one year after qualifying (for debt cancellation).

Last summer, President Bush and other world leaders promised debt cancellation to the world's most impoverished countries. But a proposal before the World Bank this week would needlessly delay cancellation for at least two years from last year's G-8 summit for more than half of those countries eligible.

The G-8 made a promise this summer that some of the world's poorest nations would see their debts to the IMF and World Bank totally and irrevocably erased. Now some governments and the World Bank are trying to take that promise back. That is unacceptable,

The IMF/World Bank must agree to full debt cancellation this weekend. But this will only be a first step towards our broader goal of expanding debt cancellation to all impoverished countries, without devastating economic conditions, in the months and years ahead.

This means that these 18 countries should only be the beginning, ... The World Bank and IMF should extend debt cancellation to all poor countries if they are serious about poverty alleviation.

To top it off, the Bank is asking these countries to keep making non-refundable debt payments to the Bank instead of using the funds to fight poverty, HIV/AIDS, and now avian flu in Africa. We call on the US Executive Director and the World Bank's Board to do the right thing and scrap these delays when they meet on Thursday.

We also serve clear notice that this agreement is only a first step on a long journey. We will continue to pressure world leaders to cancel the debts of all impoverished countries in the months and years ahead.

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