Chapter 3 of Ellwood’s text, The No-Nonsense Guide to Globalization, discusses the debt and structural changes, which are taking place around the globe. According to the author, the world has changed so fast in this 21st century (Ellwood, 2001). It is hard to consider that…
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He goes on to discuss how Third World countries united, into political organizations such as the Non-Aligned Movement, to break out from the polarized West/East power struggle (Ellwood, 2001). According to Ellwood, this was a way of Third World countries confirming that they also wanted to prosper. In the ending of the chapter, Ellwood discusses how Third World nations borrowed loans from westerners to develop their nations (Ellwood, 2001). Ellwood thinks that these borrowings have gone out of hand, which has brought about the massive debts along with structural adjustments in the world economic system. Further reading of the book is advised.
The video watched was extremely impressive. It shows the true picture of the debt, which Third World countries owe the westerners. Stunning information from the documentary is that Africans gave back twice as much as they borrowed from First World countries. This does not make any sense as aid is supposed to assist people in developing, and not depriving them much further. What is the need of aid if it makes you much poorer that
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And the essay develops around the cause (or causes) giving the evidence of its association with effect through at least two well documented resources. Increasing money supply leads to inflation. Here, the effect is inflation due to the increased levels of money supply finding a cause in it and not a vice versa.
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