This underscores one specific aspect of a more general and complex challenge. We must be part of the management to ensure that it is not loaded against us and that our interests are adequately, suitably and appropriately taken into consideration. I n this regard, we must make a decisive contribution to the debate on the reform of the international financial institutions. The South must participate fully and effectively in the design and management of a new international financial architecture. T he heavy external debt burden and large unsustainable debt service obligations constitute a major obstacle to social and economic development, the fight against poverty, human security and stable democratic governance.
Heavy debts undermine the capacity of our countries to make positive adjustments.
It is clearly unacceptable that the external debt burden should continue to constrain our ability to channel public investment into physical and social infrastructures and human resource development. The debt burden also deters new foreign investments. T he countries of the South must be enabled to make a fresh start to grapple with the socio-economic development of their countries. To that end developed countries must agree to effective and speedy debt remission beyond the onerous and protracted HIPC conditions. The categorisation of indebtedness into HIPC and others is itself arbitrary and without relevance to the realities of those who have to shoulder the burden of debts.