In order to decrease the widely prevailing economic disparity between the rich countries and Africa, Rodrigo Rato has asked western countries to end cotton subsidies.
In order to remove African countries from vicious circle of poverty, the International Monetary Fund was considering offering loans on concessionary terms to the region.
Rodrigo Rato, the head of IMF added, ”negotiations under way at the WTO (World Trade Organisation), industrialised countries urgently need to end the subsidies which distort trade."
Rato emphasized, that a framework should be developed to encourage reforms in cotton sector in Africa. Further, eliminating cotton subsidies would encourage cotton production.
Rato's comments are of crucial importance, as the G8 summit scheduled to begin on July 6,2005 will discuss the issues of debt relief and international aid to African countries.
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