The Debt Of The Third World Countries

942 WordsNov 19, 20144 Pages
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, “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 developing
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