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Discussion in 'Politics, Religion, Social Issues' started by skunk, Oct 3, 2004.
This is how terrorism SHOULD be fought.
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).
well it definatly helps the poorest countries on the long term..in some of these countries especially in africa) the interest from those debts is eating large holes into their budget
Its 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 Im unsure of the exact figure) £10 paid for every £1 received.
Though Im 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