In an unprecedented response to development needs, the Paris Club of rich lender countries has decided to freeze loan repayment by nations affected by the Indian Ocean tsunami disaster. The decision follows calls by UK government leaders to write off debt owed by poor countries.

This important gesture highlights the wider problem of how developing countries can broaden their financial base for development. Money embezzled by government officials and hidden in foreign banks is a possible additional source of funds. It should be repatriated, put in private foundations under appropriate legislation and used to support priority areas such as education, health and infrastructure. Doing so raises a number of legal and moral issues, as noted by the 2003 United Nations Convention against Corruption. But so does doing nothing.