A Plan For Reducing Poverty Through Debt Forgiveness

Over 75 years later, we still do not have the freedoms President Roosevelt wished upon us. A specific freedom that still does not exist is “economic understandings which will secure to every nation a healthy peacetime life for its inhabitants.” There are still dozens of poverty stricken countries, known as Heavily Indebted Poor Countries (HIPC). These are countries that have a national debt that is unmanageable with traditional manners alone. The good news is that the Heavily Indebted Poor Countries Initiative began in 1996 to address this issue. The World Bank, the International Monetary Fund (IMC), and other creditors teamed up to reduce the debt of 36 countries that met strict criteria.

When thinking about an issue that may affect me currently and in the future, would be an issue with student loans, something that would not only effect me but other students is a debt forgiveness which would help millions with getting a better set of mind and would further education without being in fear of graduating out of school with debt.

Due to capital limitations, most governments, particularly in the developing nations borrow funds from their bilateral friends and organizations such as World Bank and International Monetary Fund (IMF) in earnest to enable them pursue development projects, and sometimes to correct balance-of-payment deficits. Nevertheless, such governments must adhere to some outlined conditions that are spelt out in the article of agreement in order for them to secure the loans; otherwise, the loans are withheld (White, 2012). Equally, a healthy population significantly contributes to economic development of

Although Ghana has sought out financial and development support from the United States, other supportive sources from developed countries may be of an asset to developing country dealing with global

Poverty is a major issue in the US today, and sadly identity influences the cycle of poverty and how it is passed down through families. To reduce, or put a stop to poverty, equal resource and opportunities should be provided. Help with education, finding a job, or fair government programs should also be provided to those who need it.

IMF/ World Bank: The International Monetary Fund (IMF) and the World Bank Group's International Development Association (IDA) agreed this week to support a comprehensive debt reduction package for Honduras under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. The debt relief package will save Honduras more than US$900 million in debt service over the coming years, and is equal to US$556 million in net present value (NPV) terms.

Social security just turned 80 years old this year and it still remains the single most effective anti-poverty program ever created in the United States.

This never-ending cycle of debt is the reality for most, if not all of Third World countries. In the 1970’s, Western banks loaned out huge sums of money to Third World nations with the intention of one day making profit. And they succeeded.

In this unit we looked at different policies for breaking the cycle of poverty and lifting people out of it. This cycle is isn’t impossible to break but it can seem like it to the people inside. Growing up in poverty raises the chance for a child to stay under the poverty line when they group. While there are obviously policies to help break the cycle, this is obviously still a big enough problem to millions of Americans. The inability to break this cycle creates a large barrier to people in poverty to escape.

Djibouti has few natural resources and little industry; therefore, it is heavily dependent on foreign assistance to help support its balance of payments and to finance development projects. (“The World Factbook,” 2011). The

The World Bank and the IMF are among the two most corrupted financial institutions to exist today. They're also two of the wealthiest institutions in the world. While they were created after WWII supposedly to help countries recover in during harsh conditions or during economic troubles, they have seemingly done the opposite. They manipulate poor countries by giving loans out to countries that are in such harsh conditions that they must accept the loans. Once they do accept the loans, it becomes a never ending maze of debt. Examples of this corrupt dealing exists still today in countries within Africa. The institutions charge huge amounts of interest and place special conditions on the loans that are accepted which creates a great amount debt. Quickly,

From reading the articles, the term that hit me the most was “poverty relief” what is poverty relief? From reading the articles and looking at the statistics, I always feel “they” the government is helping out the wrong people, 75% of the time. I want to use this example, when my sister turned 19-years-old, graduated high school, my sister moved in 1996, had her own place, and was okay. Yet, ten years later, when I turned 18-years-old, graduated high school, could not move out. Where was the relief for me? Why are there apartments just for 65 and up, shouldn’t there be apartments for students who are going to school, and trying to reach this American Dream. Also, to point out these “poverty relief” programs, why are there a lot of crimes happening

The Heavily In-debt Poor Countries (HIPC) initiative was created in 1996 by the wealthy nations through the combined efforts of the IMF and World Bank. This initiative actively seeks the

One major complaint about the World Bank is that it causes high debt in developing countries. Even though the loans are meant to help these countries, they end up causing the countries to take on debt that they must pay interest on and remain under the conditions of the institution. Another is that as part of their lending requirements; the World Bank has imposed rigorous conditions on recipient countries. These requirements are known as structural adjustment programs. These programs force countries to adopt their conditions, such as deregulation of capital markets, reformation of national companies to private corporations, and downscaling of social welfare programs. Privatization of water supplies and public pensions, and imposing fees for public hospitals and publics schools are among the debated bank reforms. In his book, 50 Years Is Enough, Kevin Danaher describes the World Bank's policies as "austerity plans that 'reform' economic policies by suffocating the poor and inviting

Harvard Business School’s Case Study “Aid, Debt Relief, and Trade: An agenda for fighting World Poverty” outlines the steps, and missteps, that the world community has taken since World War II to address the efficacy of international assistance. The study focuses on international financial institutions (IFIs) and their ability to help poor nations break out of poverty and the possible obligations of rich, developed countries to assist the heavily indebted poor countries (HIPCs). Additionally, the study seeks to see if this assistance has been and can be parlayed into growth and investment for the HIPCs.