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Debt Forgiveness Update: Nevermind

Posted by James | in Development | on January 30th, 2006
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So much for the World Bank’s debt forgiveness of Tajikistan. It turns out that reports that the World Bank intended to forgive or annul development loans to Tajikistan were false.

“All participants of the program make their own decisions,” the document stated. “As the Tajikistan’s debt to the World Bank is totally financed by donor countries, its reduction or annulment are out of the question.”

Because donor agencies like the Bank are the main way the West engages with Tajikistan, the country will likely become increasingly reliant on investments and aid from Iran, Russia, and China. Western nations would do well to reach out to one of the few countries in the region that has been making some strides in development, even if not by writing off debt.

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