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Political science - Essay Example

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Economies of Africa, South America and few of the Asian nations are the largest borrowers of funds from the international market. The aid that the western nation provides basically takes two…
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Political science
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Political science

Download file to see previous pages... The in – depth study of the loan syndrome of the poor nations reveal the fact that most of the nations fail to repay the loan, not only the interest but also the principle. It has raised the burning question whether the developed countries accept such lack of repayment! In other words, should the citizens of wealthy nations bear the burden of development of the poorer countries!
Though there are valid arguments in both the sides as this a topic of debate but still the general consensus and majority of the experts feel that the rich nations should bear extra responsibilities for the development in their poorer counterparts, if not full. Therefore, it is argued in the essay that not all but majority of the debts of the poorer nations should be written off.
The under – developed nations of Africa and Latin America, have been borrowing consistently from the international markets. The purpose of such borrowing includes building of infrastructure like roads, dams and bridges and contributing towards the livelihood of the people like agriculture and fisheries. Among the major lenders, the developed nations of the world like the United States, Great Britain, Germany and France are notable. Along with the individual nations, the international bodies like International Monetary Fund (IMF), World Bank (WB) are also mention worthy.
The Mexican crisis in 1982 led to an international strategy on debt. The major stake holders of such strategy included the major creditor countries and the multilateral organisations. The prime motto of the strategy was to deal with the commercial bank creditors and the official creditors. The strategy evolved three fold initiatives:
The noted scholar William Easterly held the view that though the aids and donations did not reap the intended benefits in the African nations still those should not be discontinued. The economist is of the view that it is easy for one party to blame the other as the western nations did not get ...Download file to see next pagesRead More
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