But doesn't corruption mean debt cancellation is wasted?

No, not at all. Corruption is, or has been, a problem in some countries, but this doesn’t negate the benefits of debt cancellation.

Repeated studies have shown that the money from debt relief DOES go where it's needed; some of the same studies show major increases in health and education spending, but no corresponding spending increases for weapons or the military. Of course there must be mechanisms in place to make sure that the proceeds of debt cancellation aren’t misused through corruption; campaigners in indebted countries also demand this. These should include creditor and debtor governments making accessible all information about loans and debt cancellation. Where governments can't do this, debt payments could instead be re-diverted towards, for instance, humanitarian projects in the country: the solution is not for the rich world to take the money.

<< Previous | Back to questions | Next >>