Should Developed Countries Provide Debt Relief To Indebted African Countries?

1943 words - 8 pages

The indebtedness of sub-Saharan African countries is said to be one of the greatest problems faced by them in present times. [Omole 2003:1] Not only has it led to economic stagnation of these countries and the increase in global inequality, it has further increased the number of people living in extreme poverty and reduced the ability of developing countries to have a strong political and economic foot on which to stand. The most vulnerable groups within these countries have suffered and continue to suffer, and Africa remains the poorest, least developed and most technologically backward continent in the world, even though it is abundant in raw and human resources. [Mulinge 2003:23] Many ideas have been put forward to proclaim the responsibility of this enormous debt but our main concern should lie with whether Africa can continue to survive with this overwhelming burden of external, multi-faceted debt and should debt-relief be given, can Africa remain debt-free?Movements such as Jubilee South, CADTM, ATTAC, Human Rights Activists and many other NGO organisations across the globe have declared that debt cancellation, without 'conditionalities', is the only solution to this increasing devastating problem of poverty. "...make sure debt relief is not conditional on health or economic reforms that are potentially harmful to health outcomes." [Moseley (Logie and Rawson) 2004:80] While this may seem like a good idea, one has take into account that there are additional factors that need to be addressed before complete debt cancellation can truly improve the lives of the populations that live in these indebted, impoverished countries over a long-term period - Africa too, has a job to do.Debt forgiveness or cancellation is the only answer:The enormous debt owed by developing African countries is crippling their economic growth, human development initiatives and is undermining poverty reduction - the tremendous weight placed on the economies of these debtor countries causes basic human needs such as water, food, health and education to be sidelined in order for debt repayments to be met. "...many highly indebted poor countries, especially those in Africa, have found themselves engrossed in a vicious circle in which their economic growth has been sacrificed to repayment of debt." [Omole 2003:19]Debt repayments cause an outflow of capital from the South to the North and the using up of sources of foreign exchange which have been given as grants or additional loans from governments and other multilateral donors. So often countries are given further loans in order to pay their current ones and this form of debt rescheduling has only worsened the problem. [Mulinge 2003:26] Not only has this escalated the burden felt by these countries, but almost all monies (which are minimal due to low market values) received for the export of their predominantly primary commodities, is not utilised by the state but rather, is completely absorbed by repayments. As well as...

Find Another Essay On Should developed countries provide debt relief to indebted African countries?

Poverty in Less Developed Countries Essay

687 words - 3 pages issued loans from developed countries like the USA and England at a high rate of interest. They are required to pay over time, but the interest rates are so high that the country often finds itself in further debt than before the loan. This problem is defined as world debt. Suggestions made recently have been that all debt to be paid by the developing world should be written off and a fresh start made. However the problem

Health Policy in Developed Countries Essay

1191 words - 5 pages health system is without challenges, whether they are unique or shared. Health Policy in Developed Countries To examine health policy in well developed countries, we will look specifically at the US and Canada. Most Americans are insured privately through employer based programs, under market based control, while Canada has a government run single payer system that determines rates. One challenge in the US is the uninsured population and

How to Bridge the Gap Between Developed and Undeveloped Countries

2194 words - 9 pages to answer the question of what can be done to bridge the economic gap between developed and developing countries. Emphasis will be placed on a few countries namely Singapore, which has recently undergone rapid economic growth, and Rwanda, a poor agriculture-based economy. 
 I chose this topic because I believe it is important to discuss, consider and resolve the relevant challenges that we face today. The global economy affects everyone

America Must Provide Foreign Aid to Poor Countries

2239 words - 9 pages Assistance (ODA), increasing market access for developing countries, promoting good governance, and encouraging debt relief in the poorest countries.               According to the State of the World's Children 2001, a child born today in the developing world has a 4 out of 10 chance of living in extreme poverty.   Absolute poverty is "poverty by any standard...[it] is life at the very margin of existence" (218-219).  Confronted with

Should richer countries help poorer countries?

1060 words - 4 pages nations should be giving to their poorer counterparts. Richer nations should offer help, such that poorer nations can make use of it to achieve economic and political independence, to carve out a better future for themselves. Help should be rendered for development and not consumption.Rich countries can assist poorer ones in forming sound economic and governmental policies but not to the extent of controlling their governments or imposing beliefs

Globalization affects lives in developed countries

1613 words - 6 pages overall living standards. Restrictions tend to strike at the very export industries in less-developed countries that typically pay the highest wages and maintain the highest standards, forcing production and employment into less-globalized sectors where wages and standards are almost always lower. Restrictions also damage developed countries' economic interests by sabotaging regional and multilateral trade negotiations.I think globalization has helped

Agriculture In More and Less Developed Countries

2105 words - 8 pages country we all rely on agriculture for survival. The characteristics and differences between countries all over the world are all united in the need for food and survival. The technology of this world is amazing and it has brought much needed help to lesser developed countries, so maybe someday they can be more fortunate in their living conditions. Through agriculture, we as humans are surviving together as we provide for each other. Works

Trade, Protectionism, and the Developed Countries

1845 words - 7 pages 1.1 2 3.0) TRADE, PROTECTIONISM AND THE DEVELOPED COUNTRIES The World Trade Organization refers to an organization formed in 1995 with a stated goal of supporting and liberalizing international trade. Although it is in line with free international trade it allows governments to impose short term protectionist measures under specific circumstances (Shrybman, 2001). Developed countries have imposed remarkable protectionist measures since

Industrialization Differences Between Developed and Underdeveloped Countries

732 words - 3 pages breathing. Due to the influence of wealthy high-income nations, many of the middle and low-income nations have reversed priorities. Instead of mimicking the ways of those in the wealthy countries at the expense of their own societies, they should be trying to improve their economies in order to compete with the high-income countries. In most high-income countries, few children, due to successful birth control, is the rule. However, in many middle

Why are some countries called developing countries, and some developed countries? This essay gives facts about developing countries and gives differences between developing and developed countries

1486 words - 6 pages . These issues are very different in developed and developing countries. I'm also going to tell why these things are happening and how they could be improved.Probably the most important issue is starvation; the result of a serious, or total, lack of nutrients needed for the maintenance of life. First of all it is one of the few words in the English language with no synonyms.It is a word that stands alone. It should be fixed first. "Why?" You

Should People Living in more Affluent Countries Have the Moral Obligation to Provide for the Poor in Other Parts of the World

1512 words - 7 pages In this paper I will look at the argument made by Peter Singer in his paper, “Famine, Affluence and Morality” which advocates that those people living in more affluent countries have a moral obligation to provide assistance to the poor in other parts of the world. I will first outline the basic premise of Singer’s argument supporting this moral obligation and whether it is a sound argument. Secondly, I will look at an alternative view provided

Similar Essays

Least Developed Countries Essay

751 words - 4 pages stable enough for there to be any type of wealth in the common man leaving about 50% to survive on less than $1 a day. B. Actions Previously Taken 1. Previous Resolutions The U.N. has created the Istanbul Program of Action. The goal for this is to have a more strategic, comprehensive, and sustained approach based on ambitious, focused and realistic commitments to bring about structural transformation in least developed countries that

Industrialising Less Developed Countries Essay

2979 words - 12 pages This essay intends to address the argument that Less Developed Countries (LDCs) cannot achieve the level of development of the Developed Countries (DCs) unless they undergo a process of industrialisation. In proposing a case in favour of this argument the industrialisation experiences of the Latin American and Asian regions will be investigated, with specific regard to the role of state intervention throughout this process. Conclusions will be

Developing Countries Competing With Developed Countries

2379 words - 10 pages compete globally with developed countries as they are at a disadvantage in many respects. I feel that the best way to increase the competitiveness of developing countries is to increase the development in the countries and to increase investment and this often requires external assistance. I feel that developing countries can overcome the disadvantages they face by successfully planning and using some of the policies mentioned above. The third world should not be alienated but welcomed into the global market, and only then will they not feel so daunted by the prospect of competing with the superpowers of the industrial world.

More Economically Developed Countries And Less Economically Developed Countries

851 words - 3 pages common for an LEDC to overpopulate, this is caused by rapidly growing population and not enough resources to cope with the increased population. MEDC have lots of resources in both types of population. It is the size of the population that causes worries for the MEDC countries, if the population is to large the resources will start to become depleted. Although the LEDC can support and provide for their people the essentials i.e. food, water