The Debt Of The Third World Countries - 942 Words

Is it possible for the first world countries to forgive the debt of the third world countries? It is possible if the first world countries can afford to lose money and resources to help other countries. If the first world countries do not cancel the debt then the third world countries debt and loans is going to increase. It going to cause the value of the money currencies to drop and the cost of the debt is going to rise. The debt is also causing the third world countries to delay from increasing their own economic and other benefits. In other word it is preventing the third world countries from developing into a rich and resourceful country just like the first world countries. This causes the third world countries to borrow money from the first world countries in order to resolve the debt and need to borrow money to privatize the communal resource. The debt of the third world countries need to be forgiven because of the increase in debt, economic and borrowing money. The third world countries debt is only going to increase if the first world countries do not cancel the debt. The main reason that the debt is going to increase is that the third world countries had made loans with the first world countries and the loans continue to increase. According to Vanessa Baird, â€Å"Most loans to the third world have to be repaid in hard currencies; and hard currencies are stable currencies: that means their value does not change much.† (1) This makes it difficult for developingShow MoreRelatedThe Third World Debt Crisis1740 Words   |  7 Pagesnow there are many third world countries that are in debt and the one that I am going to be focusing on mostly is Africa. The third world debt crisis has to do with some of the poorest countries around the world that are in deep debts because they are not able to pay back loans that they were given to a while back. It is very hard for them to come up with the money and as time goes on little by little the amount keeps on increasing. This debt started back when first world countries had very large amountsRead MoreHow Should International Debt be Rectified in Ghana? Essay1244 Words   |  5 PagesInternational Debt be Rectified in Ghana? International debt is a modern geographical issue which has sparked much controversy in the past and continues to affect our global community to this day. Through this essay I aim to analyse contrasting viewpoints and conclude with my own perspective of the current situation, having digested the main arguments. The debt crisis originated in the 1970s due to considerable increases in oil prices. Developing countries were forcedRead MoreCauses for 1980s Debt Crisis Essay905 Words   |  4 Pagesbackground and causes of debt crisis in late 1970s and 1980s. 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