Debt Relief to African Nations : A Viable Strategy for Economic Growth and Social Progress

Debt among African nations is a widespread and pervasive problem particularly among developing nations. Debt has significant, profound and long-lasting consequences for the social, economic and political development of African nations. All too often poorer nations have been forced to set aside significant portions of their annual budgets for debt maintenance. Beginning in 2008, the eight largest and wealthiest nations will cover the total cost all loans owed to the World Bank and the African Development Bank by 19 African nations. There are benefits and drawbacks to this arrangement. This paper is a critical assessment of the impact of the debt relief initiatives of the world's eight wealthiest nations on the social and economic development of those African nations directly affected by this agreement. This paper also examines the impact of Sudan, Nigeria, Congo and Angola on this process given the ability of these nations to destabilize regions and force programs like debt relief to be halted. Finally, this paper examines the specific measurable changes realized by debt relief initiatives on housing, healthcare, agriculture, education and poverty