G8 Debt Forgiveness

G8 Debt Forgiveness

In his recent article "The Next Big Scandal," nationally syndicated columnist Richard Rahn addressed concerns about planned G8 debt forgiveness for Highly Indebted Poor Countries (HIPC). His concerns focus on the economic instability and government corruption prevalent in many of the countries slated for relief.

The July 2005 G8 meetings in Scotland resulted in an agreement to forgive $40 billion of debt owed by 18 HIPCs. Fourteen of these countries are located in Sub-Saharan Africa.

The United States will pay $1.28 to $1.75 billion per year through 2015, under the accepted debt relief plan. Although I have no problem with helping needy nations, this expenditure should not be made when we have so many unmet needs in our own Country.

Critics will falsely complain that it is wrong to withhold foreign aid when it amounts to such a small percentage of the Federal Budget. But when we add this debt relief to the hundreds of billions of dollars the U.S. spends in foreign countries for other programs, it is clear that our generosity is not insignificant.

This sum would be better spent on Social Security, Medicare, or offsetting relief for Hurricanes Rita and Katrina.

Under current budgetary constraints, federal funds should be applied to programs that reflect the greatest public need.

http://www.house.gov/duncan/en032306.htm