Now this really IS Good News

Discussion in 'Politics, Religion, Social Issues' started by skunk, Oct 3, 2004.

  1. skunk macrumors G4


    Jun 29, 2002
    Republic of Ukistan

    This is how terrorism SHOULD be fought.
  2. Roger1 macrumors 65816


    Jun 3, 2002
    I'm glad our nation forgave some debt. A little generosity never hurt anyone. Of course, I expect these countries try to be a little more responsible with their money from now on (in other words, try not to run up a bunch of debt again).
  3. takao macrumors 68040


    Dec 25, 2003
    Dornbirn (Austria)
    well it definatly helps the poorest countries on the long some of these countries especially in africa) the interest from those debts is eating large holes into their budget
  4. Zaid macrumors 6502

    Feb 17, 2003
    It’s actually got very little to do with generosity or third world countries being more responsible. Most of the current third world debt is the interest on the original debt forced on these countries after independence or from interest on IMF/WB loans that were prescribed for disastrous economic programs.

    The interest on these loans would be considered usurious if a commercial bank tried to charge it to even its riskiest clients.

    Loans were also provided to dictators to buy arms, often to oppress their own people. When the dictators were overthrown, the new (sometimes) democratic governments were forced to honour these loan agreements.

    Not that the third world is blameless. Much of the money from these loans was squandered through corruption and mismanagement.

    The history of third world debt is both shocking and depressing, with considerably more money having gone from the third world to the first than the other way around (and that includes aid). The original loans have all been repaid many times over. I believe that it is of the order of (though I’m unsure of the exact figure) £10 paid for every £1 received.

    Though I’m sure the third world appreciates the ‘generosity’.

    You should do some reading up on this. Some links to get you started:

    Legacy of colonialism
    Scale of the Debt Crisis

Share This Page