The extent of Debt and Aid In Senegal and Vietnam

Senegal Senegal is situated on the coast of Western Africa bordering the North Atlantic Ocean between Guinea-Bissau and Mauritania. Senegal became independent from France in 1960 and joined with The Gambia in 1982 to form the nominal confederation of Senegambia. However, this union was dissolved in 1989. Senegal has a long history of participating in international peacekeeping. Senegal is 157th of 177 countries in the Human Development Index.

Aid In 2002 Senegal was the recipient of $362.6 million in multilateral, bilateral and private sector aid. The purpose of these aid efforts are to support the Government of Senegal’s structural and sectoral adjustment programs. Some aid donors to Senegal: Japan United States Canada Europe

Debt In 2004 Senegal had an external debt of $3.476 billion and therefore qualifies for the category of Heavily Indebted Poor Countries (HIPC). During the 1970’s a succession of droughts combined with a series of external shocks led to an economic downturn. This caused the country’s debts to reach unsustainable levels prompting a reliance on the IMF and World Bank. Senegal, alongside other Sub-Saharan countries, is now taking part in ‘Stabilisation Programs' and ‘Structural Adjustment Programs’ (SAPs) governed by these institutions in order to improve debt problems. Senegal is forced to spend more on paying debts than what is spent on education and health.

Vietnam Vietnam is located in Southeast Asia bordering the Gulf of Thailand, Gulf of Tonkin and South China Sea. Independence from France was declared after World War 2 but the French continued to rule until 1954. Vietnam is a densely-populated, developing country that has had to recover from the ravages of war, loss of financial support from the old Soviet Bloc and the rigidities of a centrally planned economy. Vietnam is ranked 108th of 177 on the Human Development Index (HDI).

Aid In 2004 Vietnam received $2.8 billion in credits and grants pledged by international donors in order to boost economic growth and reduce poverty. For the past twenty years the country has experienced little economic growth due to conservative leadership policies. However, since 2001, Vietnamese authorities have committed to economic liberalisation and enacted structural reforms needed to modernise the economy. Leading aid donors to Vietnam: Japan Bank for International Cooperation (JBIC) World Bank Asian Development Bank (ADB) Agency For French Development German Reconstruction Bank

Debt In 2004 Vietnam had an external debt of $16.55 billion and also qualifies as a HIPC. The UK is hoping to ‘free’ Vietnam, amongst other countries, of its unsustainable debt problems in order to allow them to spend more money on health, education and economic development. France and Canada are also considering the plan. However, the US have alternative ideas for cancelling Third World Debts. The Vietnamese economy is now on the rebound due to strong export performance and through the support of increasingly accommodative fiscal and monetary policies.