Essay on Unsustainable Debt

2017 Words 9 Pages
Unsustainable Debt

Many ordinary citizens today in developed countries such as Canada acknowledge the abject poverty affecting citizens of various African countries and other undeveloped nations. However, exactly why these countries are in this position appears to be a mystery, despite many cash grants, relief efforts, and aid are delivered to these countries by various Western organizations amidst great media attention. In addition, it also seems natural that such undeveloped countries should have a net flow of capital moving towards them from wealthy industrialized nations such as Canada. On the contrary, a net flow of money has actually been directed towards the industrialized nations and various financial institutions from
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The origins of the debt crisis lie in the beginning of the Cold War era. An era in which the two superpowers of the world sought to gain alliances with as many nations as possible. One such method of attracting allegiance was to provide military aid and economic aid
(termed defense support by the US)[5] to countries such as Taiwan and
South Korea that lay directly in the path of communist efforts. One such individual involved in defense support projects was Secretary of
State John Foster Dulles, who quickly realized what a disadvantageous situation the American government had found themselves in by offering only military support. Dulles stated that he was being forced to defend the interests of the US with one arm tied behind his back; namely the nations economic strength. US military power - the other arm - was not enough and was indeed largely unsuccessful[6].

The Development Loan Fund, founded, sponsored, and funded by the
Central Intelligence Agency's Center For International Affairs at
Massachusetts Institute of Technology, resulted primarily from the efforts and concerns expressed by Dulles[7]. Milikan Max, a former CIA officer and the director of the Center For International Affairs
(CENIS), along with colleague Walt Whitman Rostow, a senior State
Department official, held the belief that "… to

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