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Tsunami Aid or Debt Cancellation
The political economy of post tsunami reconstruction
4 December 2006

The studies in this book by Damien Millet, Eric Toussaint and François Houtart analyses the link between the post-Tsunami reconstruction and the cancellation of the multi and bilateral aid of the Tsunami affected countries. They are arguing that even before the Tsunami that ravaged the coast lines, the coastal poor were suffering from the powerful neoliberal wave. The servicing of debt which accounts for the colossal amount is a major obstacle to the development of these countries.

Their arguments are based on the fact that every year, governments of the twelve countries struck by the tsunami pay about 38 billion dollars in the name of “debt service”. Because the debt has to be “served” as a slave “serves” his master. All the donations promised by international community, which are estimated at 10 billion dollars, will be swallowed up servicing the debt if delaying (moratium) or partially reducing the debt is that is offered. Only total cancellation of the public external debt can make it possible for these countries to release adequate resources to cope with the difficulties of post. Tsunami reconstruction as well as to realize the millenium development goals. This means changing the policies of the governments and international institutions to make a debt free world.