Cologne economic summit: Leaders welcome recovery from crisis, call for cooperation to relieve poverty and debt

• Pages: 209-210

Page 209

Meeting in Cologne on June 18-20, the heads of state or government of the Group of Eight industrial countries said in a communiqué issued on June 20 (see page 211) that they were encouraged by policy actions taken in the major industrial countries and in some emerging market economies to sustain growth and improve performance. At the same time, challenges remain-in particular, finding ways to increase and extend the positive benefits of globalization to people all over the world.

To help the poorest countries laboring under a heavy burden of debt, the Group of Eight approved the Cologne Debt Initiative (see page 214), which is designed to provide deeper, broader, and faster debt relief through major changes to the Heavily Indebted Poor Countries (HIPC) Initiative launched in 1996. Leaders generally hailed the package, saying it would reduce countries' overall debt by more than half, lowering interest payments and freeing money for education and health care. IMF Managing Director Michel Camdessus also welcomed the initiative (see below).

Major elements of the new initiative include: - Framework for poverty reduction. The IMF and the World Bank should help qualifying countries draft and...