Heavily Indebted Poor Countries

of its impact. These problems are pushed aside and 22, 000 children each day die. In 2014, Ebola outcry garnered visible top spots in media coverage leading the US among others to send ground personal to contain the crisis. Across developing countries malaria and tuberculosis receives billions upon billions of dollars from both multinationals like the Global Fund and individual donors like the Bill and Melinda Gates Foundation. William Easterly (2006) would call them “goodhearted,” as they misunderstand

position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial power institutions are geared towards moving resources from the poor countries to the rich western countries. The end result is creating a situation where the poor countries sunk into more economic

reducing poverty through debt forgiveness. The plan was called the highly indebted poor countries (HIPC) initiative Countries would be eligible for this plan if they had unsustainable debt, debt ranging from 200-250% of their export earnings. The first stage of HIPC involved a structural adjustment for 3 years until the Decision Point was reached, if the debt was still unsustainable there would be a 67% cancellation. The country would then enter stage two which included another 3 years of adjustment

The HIPC Initiative By HSvB “The Heavily Indebted Poor Countries (HIPC) are a group of 38 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund (IMF) and the World Bank”. The HIPC Initiative was initiated by the International Monetary Fund and the World Bank in 1996. In 2001 Ghana declared itself as heavily indebted poor country, according to the then president John Agyekum Kuffour, the decision of Ghana to

position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial power institutions are geared towards moving resources from the poor countries to the rich western countries. The end result is creating a situation where the poor countries sunk into more economic

inherited levels of foreign debt have crippled in the capacity of low income countries to overcome poverty and that concessional lending’s are not enough. This lead to the ‘Enhanced Heavily Indebted Poor Country (HIPC)’ initiative in 1996 in collaboration with world bank to eliminate unsustainable debt in the world’s poorest and most heavily indebted countries. A summit meeting in 1999 expanded the spectrum of eligible countries for debt relief with higher and faster reliefs. This came to be known as

position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial power institutions are geared towards moving resources from the poor countries to the rich western countries. The end result is creating a situation where the poor countries sunk into more economic

Over the past few decades Africa’s overall economic performance has been in decline especially in the 1980s. There has been little prospect for the future of most of these developing countries, however during recent years there has been a degree of optimism considering the development performance of the economy as well as providing a better long term future. The crisis emerged in 1982 with their debt rising above $140 billion to over $270 billion in 1990 (World Bank, 2013). There has been stagnation

crisis of the 1980s is the most traumatic economic event in Latin America’s economic history. During the “lost decade”, the GPA fell from 112% to 98% of the world average, and from 34% to 26% of the developed countries average. Development countries were giving loans to Latin American countries to enable them to straighten their economies. However, they have had difficulty repaying their debt. Latin American borrowing from US commercial banks and other creditors increased dramatically during the

debts. Can you imagine the sudden relief, of your debt being paid, every hard-earned penny being your own, and finally your family having enough food on the table. Now lets apply this to underdeveloped poor countries. As the country struggles to get ahead, international lenders drown them in their overwhelming debt, preventing them from every rising to the surface. Thus my first contention is Mercy. Mercy is having compassion or forgiveness shown toward someone whom