Assess some of the ways in which Third World Debt might be reduced.

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Assess some of the ways in which Third World Debt might be reduced.

Despite the overwhelming number of statistics and indicators, global poverty is as hard to measure as it is to conceptualize. One fact is undeniable: someone is going to have to pay for past debts. It could be the people in debtor countries, or the banks, or the people in advanced industrial countries. Most likely it will be some combination of these three groups. In the last ten years, there have been a variety of proposals which, unfortunately, usually reflect only the special interests of the groups proposing them. Generally speaking, these solutions fall into three categories: repudiation, minor adjustments in repayments, or reduction.

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There have been no serious proposals for a widespread and coordinated repudiation of global debt.

Repudiation would seriously disrupt global economic relations, probably far beyond the immediate losses of the debts themselves.
Retaliations would follow, because it would be politically impossible for lenders not to react, and because there would be a conscious effort to warn other potential defaulters against similar action. The escalation of economic warfare would have the effect of sharply reducing international economic interactions in trade, investment, and exchange. Such an outcome is in no one's interest. There is nothing to guarantee that the countries won't simply get into debt all over again and continue to owe more allegiance to first world elites than to their own people. Repudiation also let's off the hook the World Bank,
IMF and commercial lenders who created these injudicious loans in the first place.

Another option would be to cancel debt with conditions. Part of the cycle is that as countries get deeper in debt and grow more impoverished as they try to repay, the lenders impose a whole new range of what they say are anti-poverty and anti-corruption conditions, but which most often have other agendas, such as opening up poor countries to multi-national companies.

Therefore a proactive proposal that meets several criteria needs to be developed in order for this method to be

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