The New York Times reported today that the G8 finance ministers have come to an implementation agreement on eliminating up to $55B in multi-lateral debt owed by 18 poor countries. Essentially the G8 have contractually committed to cover the World Bank’s dollar-for-dollar cost of this in ADDITION to their regular contributions. In reality this is worth closer to $18B in near-term dollars … significant nonetheless. This also sets a model where additional countries (up to 35 in total) can qualify to participate for even more debt cancellation.

This debt cancellation has been connected with requirements that “sound” economic policies and meet reasonable standards for good governance [details still tbd.] This is the [amazingly relatively new] concept that aid [in this case, debt cancellation] is contingent upon governments investing funds in ways that help alleviate poverty. Obviously, the devil is in the details on whether these requirements are “reasonable” [historically, some requirements have not been] and, more importantly, helpful in ensuring accountability for spending.

This is an amazing breakthrough and, frankly, a grand experiment in a new approach to aid proposed by a number of economists and anti-poverty activists including Jeffrey Sachs. Why a grand experiment? Because it hasn’t been proven that these kind of monies will be directed to help the poor. There is so much pressure (and historical precedent) for poor incumbent governments to take windfall monies and invest them ineffectively. It is understandable (although not excusable) that governments are tempted to spend money on short-term, non-sustainable activities (e.g. welfare, high-profile pet projects) which are politically popular but which are not building up the long-term infrastructure (human and physical.) And then there’s the unfortunately not-too-uncommon cronyism which favors the wealthy over long-term public interest.

In the spirit of Bono, though, I won’t succumb to being a skeptic. This is a needed experiment which we should all watch closely to ensure it is successful.

It is interesting how many anti-poverty supporters were against Wolfowitz (former US deputy secretary of defense) being placed as president of the World Bank. The New York Times reported that Wolfowitz is already pressing the US publicly to step up and commit more specific budget $ long-term to anti-poverty goals including the Millenium Development Goals. He is also promoting an approach to modernizing agricultural practices in Africa (to benefit from the rest of the world’s so-called “green revolution” — basically using better seeds and modern ag techniques.) He is also advocating for infrastructure projects like Jeff Sachs recommended in The End of Poverty.

Frankly, I think having someone who has the tenaciousness to run a military war may have what it takes to drive a war on poverty. The jury is still out on Wolf #2, but there’s some interesting early promise in his priorities.

This past Sunday, James Traub did an impressively insightful cover story on Bono: The Statesman in New York Times Magazine about Bono’s journey along the path of advocating for the poor.

Here are some of the highlights I liked in the story:

• Bono knows how to “ask big” and celebrate partial progress. Bono praised Chirac at a U2 Paris conference in spite of Chirac’s incomplete support. Guess who called him later and asked to work more closely with him?
• Bono knows how to align himself with both the left and the right. He appeals to different people in different ways for the sake of the “emergency” of poverty.
• Bono thanks people – big and small. He signs every item fans extend to him to sign. He thanks major leaders for their actions and the impact that they will have. Bono praised the Bush administration for the commitment to the Millennium Challenge Account (for funding AID relief in Africa) even though it had conditions attached to it that he didn’t approve of. Notice, he thanked people, not the program.
• Bono trusts people taking them at their word. When Condoleeza Rice privately made a verbal committed that the Bush administration would later make a historic commitment to fight AIDS, Bono trusted her and gave them his support even though that promise was not made public. Rice delivered.
• Bono likes to sing his messages. When asked why he preferred a goal of canceling all of the debt in Africa instead of the, then current, 2/3’s cancellation, he said that you can’t sing about two-thirds of something. Instead, “it has to feel like history … incrementalism leaves the audience in a snooze.” Singing for Bono includes speeches and press conferences.
• U2 has always stood for something positive. Rock for stopping bad things and Rock in favor of good things. Compare that with other rock bands.
• Bono loves the world – he isn’t full of angst. This is so opposite to the angry words so many advocates have for others.
• Bono likes to hear the whole story. After meeting with Jeffrey Sachs to hear his opinion, he asked Sachs to find him an academic who opposed his perspective.
• Bono speaks unspoken dreams. “My generation wants to be the generation that ended extreme poverty.”
• Bono say “yes and yes.” He calls for responsibility for the aid recipient as well as the aid donor.
• Bono calls on everyone to be their best. Nothing less, nothing more.
• Bono is in for the long haul. He decided to go low profile last week in New York for UN summit on Millennium Development Goals because of America’s focus on Katrina. Do you think that his quietness reflects any less passion for the MDGs?

Traub says that it isn’t Bono’s belief in the issue [of eliminating extreme poverty] that is so effective; it is his belief in others.”

And most importantly, Bono is not a skeptic. Yeah, I’m really tired of skeptics!

Oh yeah, and Bono like Brunello ;-)

UPDATE: Bono also answered questions in the New York Times. He’s asked about microcredit and talks about his meeting with Dr. Yunus. Bono offers this quote: “Give a man a fish, he’ll eat for a day. Give a woman microcredit, she, her husband, her children and her extended family will eat for a lifetime.”