The Three Stages Pre Decision Point

991 Words May 13th, 2015 4 Pages
Q3a)

Q3b) I think that the HIPC approach is fair, as the process of the HIPC contains 3 stages, that are fair and possible to accomplish. The three stages pre-decision point, decision point, and completion point are fair to decide if a country deserves help, and what kind of help it requires. Also, the fact that in stage two, the PRSP (poverty reduction strategy paper) makes sure that the countries that are in debt structure their spending and paying back properly to achieve paying their debts more efficiently. This initiative, in my opinion, is a good approach, as debt is relieved.

Q5a) The conditions attached to multilateral aid from the world bank/IMF are serious, as they impact countries that borrow that money. These conditions include:
- Cut government services
- Sell government assets
- Boost cash crop production
- Allow foreign competitors to enter the market
These conditions sometimes require countries in debt to stop funding education and healthcare, and start funding projects that require lender countries companies to build these projects. Aldo, the fact that the lenders benefit more from lending money to poor countries, as they get the money back in return as they have the power to control the countries in debt.

Q5b) From the perspective of the citizens, devaluing the currency would be disastrous as the citizens assets are in that currency, as well as their life savings. For example, in Iraq, when the currency collapsed, people’s savings were…
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