Ghana President Akufo-Addo Makes the Case for ‘Cancellation’ of Africa’s Debts

May 19, 2021 (EIRNS)—Speaking at the Summit on Financing African Economies, in Paris on May 18, President of Ghana Nana Akufo-Addo declared that the Bretton Woods conference, which took place as World War II drew to a close, created a global financial architecture which, over the last 77 years, has proven to be unfavorable for Africa.

“These challenges have resulted in a global economic system that has proven to be incapable of supporting lives and livelihoods, and allocating sufficient long-term resources to support Africa’s economic transformation,” President Akufo-Addo said.

“The pandemic has also ensured that the total fiscal deficit of Africa rose from 4.7% of GDP in 2019 to 8.7% in 2020; overall debt levels are also estimated to have increased from 57% of GDP in 2019 to 70% in 2021. Without the ‘fiscal room to breathe,’ Africa could truly become ‘the forgotten continent, and that is why there is urgent need for comprehensive debt relief and debt cancellation,”

President Akufo-Addo stated.

He continued,

“Just as the Bretton Woods institutions helped to rebuild the post-war global economy, and rekindled international economic cooperation, 77 years ago, there is now a historic opportunity to reset the global financial system’s economic rules to give African countries an equal chance at development, in the wake of the pandemic.”

“I urge the IMF to on-lend 25 to 30% of new $650 billion SDRs, to support low and vulnerable middle-income countries before the 2021 annual meetings, increase IDA funding to strengthen the balance sheet of the World Bank, replenish the African Development Bank and Afreximbank to support investment in green investments, facilitate trade, and support the private sector to create jobs and build back better,”

he stated.

With Africa, in 2050, becoming home to a quarter of the world’s population, more than half of the global youth population, and, potentially, having a GDP of some $29 trillion, President Akufo-Addo told the gathering that “it is, thus, in our collective interest to create the conditions that will enable such a development to be of benefit to the entire globe.”

President Franklin Roosevelt’s vision for the post-war world was not achieved with the Bretton Woods system. Lyndon LaRouche campaigned vigorously for a New Bretton Woods system, to establish a just international economic order. A change of economic paradigm is needed to liberate the world from the evil (and idiotic) Malthusian and colonialist policies that have been tolerated since Roosevelt’s death.