Africa's largest slum, Kibera, where 600,000 Kenyans live with neither sewage nor public healthcare. Photograph: Khalil Senosi/AP
What effect will debt relief have on the economies of countries left behind by the sudden outbreak of generosity at the IMF, World Bank and African Development Bank?
Kenya, for one, did not qualify for debt relief, while three of its neighbours and major trading partners did. That left the
East Africa Standard wondering if the country would "lose its competitive edge against Uganda and Tanzania, given their treatments under arrangements such as the Heavily Indebted Poor Countries (HIPC) initiative. Rwanda has been included in the HIPC initiative."
Kenya's frustrated assistant minister for trade, Petkay Miriti, told the paper that Kenya had met all conditions imposed by western capital over time and yet the goalposts kept changing. "It will be difficult for us because our neighbours will be investing that money in services and mobilising trade when we are servicing debts."
Nigeria - aka Africa's richest debtor - would understandably like its $35bn debt written off as well. New World Bank president Paul Wolfowitz made Abuja his first stop on an inaugaral four-city tour of Africa, and Nigeria lost no time in making its case. The response sounded cautiously optimistic, with Nigeria's daily Guardian quoting Wolfowitz as saying creditor nations would "hopefully come up with a deal to forgive Nigeria's debt".
Forgiving the debts of the poorest is a start, but selective debt forgiveness will have consequences for those with stronger economies. Kenyans and Nigerians have just as much right as the 18 initial "winners" to claim that money borrowed in their name and paid back from their paypackets was not spent for their benefit.
Meanwhile, as Nigeria's Daily Trust reports, the government is left trying to pay down an outrageous debt owed to countries that can well afford to forgive it.
