Uganda

In the 1970s OPEC raised the price of oil twice and banked the money in western banks. The banks lent this money out to developing countries, sometimes for projects but mainly to finance conflicts. By the 1980s global interest rates had more than doubled and any unpaid interest was added to original loan amounts. Highly Indebted Poor Countries Initiative: The HIPC are a group of 38 of the least developed countries with the greatest poverty and debt. They are considered eligible for help from the IMF and WB The WB, IMF and African Development Bank cancelled all loans owed by the 18 HIPCs However there were two conditions - the government of each country had to demonstrate good financial management and a lack of corruption, and the money saved had to be spent on healthcare and education By 2008, 27 of the 38 HIPCs had met the conditions of debt relief and had received a total of $85 billion in aid African countries still owe $300 billion and there is little chance that any of them will be able to repay those debts For countries affected by war or natural disasters, new loans may be needed just as old debt is cut Impacts of debt cancellation: The cancellation of $1.5 billion of its debt under the HIPC initiative has had major impacts in Uganda. Spending on public services has risen by 20% overall - with 40% extra being spent on education and 70% extra on healthcare Free primary schooling introduced - with girls in particular benefiting most 5 million extra children have begun to attend school 2.2 million people have gained access to clean water Fetching water is usually the responsibility of girls and is often a reason for girls not going to school