Book Review: Relief Pitch

Debt relief may sound boring, a topic best relegated to policy wonks and academics. But of late, the subject has seemed almost, well, sexy. At the annual meeting of world leaders at Davos, Switzerland, in January, one of the most exciting moments followed an impassioned speech by President Benjamin Mkapa of Tanzania, who proclaimed that his country can do nothing about poverty so long as it is burdened with heavy debt payments. Sharon Stone leaped to her feet and called for the stunned audience to help–and promptly raised some $100,000. But after the stars fade from the headlines, it’s easy to forget such worthy causes.

Hence the importance of an engaging new book, The Debt Threat (HarperBusiness; 257 pages), by Noreena Hertz, a University of Cambridge globalization expert, who tells the story of how debt burdens are crushing many developing countries. We see rock star Bono, on a debt-relief crusade, bring Senator Jesse Helms to tears as the musician quotes verses from the Bible. We also learn of practical solutions. Hertz insists that debt relief should be delinked from International Monetary Fund and World Bank “good governance” conditions, arguing that there isn’t time for impoverished countries to revamp their political systems. Instead, Hertz proposes that debt savings should go into trust funds managed by independent boards and earmarked for poverty alleviation. Fundamentally, Hertz sees debt relief as a security issue. “There’s a moral imperative and also one of self-interest,” she says. “When states can provide health, education and social services, there’s less opportunity for extremist organizations to come in.” –By Dorinda Elliott