British deputy leader Gordon Brown is emerging as one of the most prominent advocates of debt relief for poor countries. He will be in a prime position to champion this agenda in the coming year, as the country takes on leadership of both the Group of Eight and the European Union. His opening salvo came this week, with a pledge to write off Britain's share of the debt owed by 32 of the world's poorest countries to the World Bank and African Development Bank.
The annual #100 million ($1.41 billion) in payments that Britain will forgo falls well short of the total forgiveness that activists and some economists have been calling for over many years - and Britain holds only about 10 per cent of the total debt owed by these countries to the two institutions. But it is a start. The plan will also focus the world's attention on the debt-relief issue as rich-country lenders gather in Washington for their annual meeting this week.
On the agenda will be other proposals for freeing up more money for governments to spend on health, education and poverty relief. Watch for Mr Brown to lobby in favour of two of his pet projects. One would revalue the International Monetary Fund's gold reserves to release some US$32 billion in aid, while another would see the issuance of bonds backed by future government aid payments.
These are initiatives that deserve global support, and they should help keep the UN Millennium Development Goals of halving poverty rates by 2015 from slipping out of sight. Yet they are only part of the equation. As much as debt relief will give developing countries some breathing space, it should also be seen as a chance for governments of poor countries to put their houses in order. The burden of debt is too often compounded by inept administration and corruption.
Any short-term boost that poor countries get from having their payments reduced or loans written off will not last if the equally large problems of inefficiency and graft are not tackled. At worst, similar obligations will be built up again in little time, with the average citizen left to foot the bill.
To be effective, debt relief might need to be tied to redirecting the funds once meant for interest payments into humanitarian programmes. Benchmarks for better and more accountable governance could also be established.