World Economic News
British Present 'Third Way' Debt Reorganization
British Chancellor of the Exchequer Gordon Brown promoted the British plan for a "Marshall Plan" for Africa, in a discussion with the London Guardian Feb. 2. The plan was presented at the G-7 Finance meeting in London Feb. 4-5.
The "Marshal Plan" consists of more globalization, free trade, some debt relief, some more aid, and arrangements for the developed nations to pay off the IMF and World Bank. Britain, and the rest of the G-7 nations, all insist on "liberalization" and privatization by developing nations' governments as a prerequisite for aid, as a matter of policy.
Brown and Prime Minister Tony Blair are using the Bush Administration's fears about global security to push their plan to Washington, which has many objections to it. The "diplomatic" thrust of their plan is to persuade the Bush crowd that poverty in Africa is hampering the "fight against terror." World Bank head James Wolfensohn is also backing the British plan for Africa.
Gordon Brown told the Guardian: "We will be trying to persuade America that debt relief and extra finance for development is in its interests, not just because it is good economics and social policy, but good for its security as well. If the U.S. wants to separate the extremists from those that they are trying to influence, it makes good sense to show how industrial nations can implement a Marshall Plan for developing countries. U.S. interests point to the wisdom of the international finance facility and debt relief that will show that rich countries believe that globalization should be about social justice on a global scale."
Brown is promoting an "international finance facility" (IFF), reportedly with the backing of Germany, France, and Italy. This operation would double annual aid flows to a pathetic $100 billionby selling bonds on the world's capital markets!