Togo qualifies for debt relief scheme
Togo will now have its debt repayments reduced, while it has to jump through further hoops, in the form of economic and political reform conditions, in order to get irrevocable debt cancellation. It had to undertake a range of reforms under World Bank and IMF programmes to get this far, and more of the same is to follow.
Togo's income per person is just $360 - only about 80% of the 1980 level. Life expectancy is 57 years and it ranked 152 out of 177 countries on the Human Development Index in 2007-2008.
Togo's economic situation is linked to decades, in fact centuries, of exploitation by international and local elites. Togo formed part of the Slave Coast from where Europeans shipped captives across the Atlantic from the 17th century. After a tussle between European powers, it became a French colony at the start of World War 1.
Togo gained independence in 1960 but has spent most of the time since then under the rule of General Gnassingbe Eyadema, giving him the dubious honour of the longest running head of state in Sub-Saharan Africa. Human rights abuses led to the imposition of EU sanctions, although the IMF and World Bank continued to lend to the regime, with their usual economic policy conditions attached. Eyadema died in 2005, tipping the country into a period of violence and instability, although parliamentary elections were finally held in 2007.
Togo's debt stood at around $1.8 billion at the end of 2007, while its entire Gross National Income was just $2.2 billion. The largest single creditor is the World Bank, with smaller amounts owed to the African Development Bank and the IMF, and around one-third of the debt is owed to country creditors.
When Togo finishes the HIPC process, it should receive approximately $270 million in debt relief, and a further $404 million under the Multilateral Debt Relief Initiative. This is on top of a deal with the Paris Club of 19 wealthy countries in June 2008, which saw $347 million of Togo's debts wiped out and an agreement to defer any debt service payments to the Paris Club until 2011.
The combination of these schemes will still leave Togo in millions of dollars of debt, even after it has met the conditions of HIPC. Togo needs faster and deeper debt cancellation, without harsh and undemocratic strings attached. The international community should provide more support to civil society and parliament, to increase the potential for democracy and economic growth after the oppression and poverty that have characterised Togo's troubled history.
