Much is being mooted regarding the forthcoming G8 meeting and the abolishing of poverty
from third world countries, particularly in Africa.
However, a closer look at a workable economic model should be examined if any real progress
is to be expected.
Firstly, there is the question of cancelling the interest payments on loans made to third
world countries. Economic leaders should examine whether the interest payments already made by third world
countries already exceed the loan amount made to them. If the interest payments have exceeded the amount then the loan
should be written off. Alternatively, the interest payments already made should be deducted from the loan amount and
a conservative interest rate applied to the balance.
Secondly, there is the question of the giving of aid. How can aid be given to countries
in a manner which suits their political suitation or stage of development? This can be quite a complex matter but if
it is broken into small controllable projects then some headway can be made.
The basic aspirations are for food, clothing, health, education and jobs.
Let's assume that US$10000 can feed, clothe and educate a village for a year. Rather
than bringing in foreign workers and food, employ the maximum number of local villagers to teach, manufacture clothes, and
provide or grow food. Where this is not possible, the closest villages should be sought to provide the shortfall.
There are also the complexities of transportation and clean water, and this is where the experience of aid agencies can
help. This is perhaps where western companies can be most involved in. However, they should still employ
the maximum employable villagers and pass on and develop their skills & experience.
Inter-country African trade should be encouraged ensuring circulation of wealth among countries.
One of the issues confronting any aid agency is the mis-appropriation of funds.
There are a number of approaches that can be adopted.
1. Barter trade; but in a manner that holds the aid fund in a private account that generates
interest. This provides savings from expenses including those incurred in foreign currency transactions.
2. The use of e-currency.
This would introduce technology throughout the region and yet still allow the aid fund to
grow via its interest gained in an account or better yet invested to provide yet even more e-currency for development purposes.
