Britain & G7 Ministers Ready to Strike Historical Poverty Deal

Finance ministers from the seven richest countries in the world have accepted a debt relief deal, which should include money owed by poor countries to the International Monetary Fund; a move that looks certain to be Britain’s first victory in its battle to eradicate poverty as the G8 chair.

The G8 finance ministers, excluding Russia, will gather in London today to lay down exact details of the package, which is scheduled to be announced officially tomorrow.

British Chancellor of the Exchequer, Gordon Brown has delighted aid groups and humanitarian organisations by insisting that the government would refuse to bow down from its agenda for Africa.

Brown told the Guardian newspaper, "I’m still aiming for 100% debt relief. I'm still aiming for a doubling of aid. I'm still aiming for trade justice. I'm still aiming for all these issues."

On Tuesday, Prime Minister Blair announced a deal after his meeting with US President George Bush. However, the G7 finance ministers have agreed to move beyond these proposals, which only included the debts to the World Bank and the African Development Bank. The new proposals are touted to potentially save poor countries up to £1.1 billion a year in debt repayments.

The topics of increasing aid to the region and creating fairer trade rules were brought up also, as Blair and his government seem determined to bring the world’s focus towards poverty, using Britain’s G8 Presidency to the fullest.

The Chancellor said, "After talks with my finance minister colleagues, I believe there is a shared understanding that a resolution on the crushing burden of debt is urgent, and that at the Gleneagles summit we will reach agreement that action together on aid, trade and debt relief is essential."

Brown commented that he believed the Make Poverty History campaign was having a huge influence and effect on the topic, as a global awareness was being brought to the centre of discussions. He praised rock stars Bob Geldof, and U2 front man Bono, by saying, "These concerns about global poverty are on the agenda as never before. Western countries are under enormous pressure to export subsidies in agriculture as a result."

In parallel announcements, the US treasury secretary, John Snow said that a deal was close, and he reported, "I'm very hopeful we'll be able to announce a far-reaching agreement that will relieve the crushing burden of debt from the poorest countries."

Bush and Snow are expected to remain firmly against proposals for an International Finance Facility (IFF) to be set up, as put forward by Gordon Brown. However, Brown remained undeterred and stated that a mini-IFF could come to fruition "within weeks" to aid a global vaccine programme.

The British Chancellor also stated that the G7 would soon unveil a health initiative to conduct research, and to provide funds to bulk-buy desperately needed drugs for poor countries. Brown was confident that a doubling of aid from US$50 billion to US$100 billion would succeed: "I believe the IFF will be set up. But there is still a lot of water that has to flow under the bridge."

Despite finance problems in a number of the G7 nations Brown said that he refused to ease up in his efforts, "Eight years in government have convinced me that if we continue to work internationally and with people both inside and outside governments, then we are not powerless but have the power to make this difference."

Many world leaders have brought up the topic of corruption in many African governments and used this as a reason to be hesitant in offering increased aid. However, in response to this Brown said, "My answer is, come with me to the school I visited in Kenya, to the hut in Tanzania where I saw the Aids victims, come and see the mothers begging for the education for their children they can't afford because of the school fees, come and see the schools built with aid. Small amounts of money can make a big difference. Large amounts of money can make a massive difference."