The Impact of External Debt on the Nigerian Economy

In the documentary Life and Debt, it is explained through the stories of local people, the economic and social crisis of Jamaica. With Jamaica receiving mandatory loans from the International Monetary Fund (IMF) in 1977 because of lack of alternatives, Jamaica was promised meaningful development. Unfortunately, this only made the situation worse because of the extreme policies and foreign economic agendas that came with the loans, forcing Jamaica into even further debt. Therefore, it is my opinion that it is because of the policies and greed of the IMF and The World Bank that came along with the loans, that Jamaica is currently 4.5 billion dollars in debt.

Operating in an international economy is a must for every nation. However in order to keep an economy out of long term debt the foreign sector need to be as balanced as possible. As shown in the circular flow model (figure 2) too many imports can lead to major leakages in our economy causing foreign debt to rise. To slow rising foreign debt the causes need to be considered:

Neither Republicans nor Democrats appear to have any sense of urgency in rectifying this problem. Fortunately the U.S. Government has a good reputation of paying its debts and thus has a good credit rating which allows it to continue borrowing, although that good standing was put to the test recently in 2011 when Standard& Poor’s reduced the U.S. rating from AAA to AA+.

America’s economy is a fading light in an endless void of blackness that is going to keep getting dimmer and dimmer until it sizzles out, and unless America realizes this and does something about it, American economy is doomed. Federal debt, lack of jobs, discouraged workers, jobs overseas, job loss, state and local bankruptcy, and reckless inflation all take a large part in the deteriorating of America’s economy. American’s have failed to acknowledge the growing crisis, and because of this, our economy is reaping the consequences. Each problem that America’s economy is facing is going to require a unique set of solutions and an army of problem solvers. Is fixing the United States’ biggest problem going to be easy? Of course it isn’t going to be easy. But it is possible? With every American working together to pay back our debt and end this economic apocalypse once and for all, anything is possible.

This paper sought to answer the question whether Federal Debt is Harmful to the United States Economy. The paper examines and assesses the possible effect of high levels of debt on the United States in the context of the recent financial crisis. The analyses provides significant insights on understanding the adverse impact of national debt dynamics on medium and long term economic growth, with a special focus on the United States. This paper adopted a general theoretical model enhanced with a debt variable to address the possible issues of bias. A fixed effect panel regression was used to control factors of time and country-specific elements. Concerns of possible effect of low economic growth on increased levels of debt were addressed using

The United States of America has carried some amount of federal debt every year since the country was founded. From this empirical evidence, it can be said that debt itself is not damaging to an economy. After all, the country has had periods of rapid growth and economic booms while carrying different amounts of debt. It is also plain to see that a very large amount a debt, an amount that could not ever be eliminated without unreasonably inflating the dollar, could have devastating effects. The US dollar is a fiat currency, which holds value only when holders of the currency have confidence in the issuing institution, in this case the US government. In the event the government could not repay its debts, the value of the currency would drop as people lose confidence. The effects on the US economy, households, businesses, trading partners and foreign governments would be disastrous and widespread.

The current economic event on the increase in the National government debt has become of interest to the public and the decision makers. This paper looks at the economic event as per Stephen Dinan’s article in The Washington Times dated on June 16, 2015, in regards to the impact of the increasing national debt to the general economic growth in America. The proportion of the United States ' National debt is increasing in comparison to the National GDP. It is evident from the past years that the United States ' Treasury has been borrowing a lot of funds from its citizens and foreign investors to help fund wars promote the economic development of the country, and save the financial systems as well. This paper will explain and demonstrate an in-depth economic analysis of the USA National debt vital to cope up with this worrying trend in the economy.

When α government spends more thαn the revenue collected from tαx, tαriff, αnd other fee revenues, it must borrow to cover the deficit it fαces which when αccumulαted over the yeαrs becomes the nαtionαl debt. Internαl αnd externαl debts αre the two types of nαtionαl debt. Internαl debt includes the αmount borrowed from sources within the country. The government rαises this money by selling securities, government bonds, αnd bills. While externαl debt is the money borrowed from foreign sources. These sources mαy include privαte sources, other countries, αnd the Internαtionαl Monetαry fund. This pαper will explore the reαsons αnd consequences of the high nαtionαl debt fαced by the United Stαtes of αmericα. Furthermore it will αlso discuss wαys the reαson for this excessive spending cαn be eliminαted or reduced. economists forecαst thαt by 2030 the current αccount deficit would surge up to $5 trillion on αnnuαl bαsis which would constitute up to 15% of the country’s GD. This entire deficit will cumulαtively contribute in further inflαting the level of foreign debt thαt would burden the economy which would imply greαter imposition of bαck-breαking tαxes on the people of the country.

Many poor countries carry sufficient amounts of debts due to loans from wealthier countries or from international bank loan companies. With the large build-up of loan, the country can go bankrupt. Ultimately, this leads to the entire country working to pay the debt without having any realization of their economy. Debts create significant obstacles for these developing countries, since they divert their funds away from improving different sectors, including healthcare or education. This contributes to lower life expectancy and more illiterates in the country. For instance, Liberia has a total debt of $3.7 billion US dollars; the problem is they can only allocate US $7

One of the major causes of poverty throughout the world is National Debt. Also known as public debt, national debt is defined as “the total financial obligations of the central government of a nation usually in the form of interest-bearing government bonds” (National debt 2015). International debt is complex challenge in magnitude with poverty affecting the welfare of millions of people, in many countries all over the world. However at the same time international debt does not only affect those in the country but rather affects many international and private sources of financial institutions. National debt presents many moral challenge

One of the greatest threats to development in most African countries is the huge debt stock and the cost of servicing it. Large-scale borrowing in the 60s and 70s (in a bid to ensure welfare of the citizens after colonialism) coupled with events in the world economy such as rising oil prices, rising interest rates, falling commodity prices and global recession led to the Debt crisis of the early 80s which left many poor countries with huge cost of servicing debts which still lingers today. Even with the debt relief initiative of the World Bank and IMF about two

The larger the per capita income the greater amount of tax revenue Country X will have at its disposal to pay off debt. According to “Determinants and Impact of Sovereign Credit Ratings”, by Richard Cantor and Frank Packer, per capita income affects sovereign credit rating because “the greater the potential tax base of the borrowing country, the greater the ability of a government to repay debt. This variable can also serve as a proxy for the level of political stability and other important factors”. Per capita income will be most affected by the Country X’s economic experience. Some key questions to consider about Country X’s economic growth ‘will Country X be able to produce a stable economy that has a low unemployment rate?’.

During the 1980s, the Baker and Brady Plans were initiated to alleviate developing countries debts. The former plan called upon financial institutions to increase lending to developing countries by up to 50% and the latter plan sought to annul debt through collaboration with private-sector lenders. Developing countries’ debt problems became known as debt overhang whereby the “presence of existing ‘inherited’ debt” exacerbated the debtor countries’ economic hardships. While the Baker Plan was largely ineffective, the Brady Plan helped revive the Third World debt market and the composition of capital flows in the Brady countries shifted away from the public sector to the private sector in the form of foreign direct investment (FDI) and equity.

This paper is mainly focusing on the historical background and causes of debt crisis in late 1970s and 1980s.

There has been a lot of growing interest and concern on the development of petroleum and its contribution to economic development. The objective of this study is to look into the economic impacts of petroleum on the Nigerian economy by using theoretical, empirical and non-economic components to find out the positive and the negative impacts of petroleum on the growth of the Nigerian economy. Giving possible solutions to policies and the non-economic factors. Empirical evidence samples will cover all the