The international community should reduce or eliminate the debts of the world’s poorest countries. To what extent do you agree or disagree?

The international community should reduce or eliminate the debts of the world’s poorest countries. To what extent do you agree or disagree?

 

Pressing Debts of Poor Countries 

In an era when bi lateral and multilateral cooperation is achieving new heights at the global level, many economists have started suggesting that to bring the international community more closer, rich nations should work in the direction of bringing down or writing off the debts altogether, whereas there are several who feel that this would be inappropriate.

 

It is firmly believed that the maladies, like hunger and poor living conditions, etc. being faced by humanity stem from lack of financial resources. The issue takes a monumental dimension when it comes to countries that face severe shortage of money. As per many established experts, although the countries in possession of abundant financial resources do actually put in serious efforts to help poor nations by extending aid and bridging loans, all the assistance goes in vain; as the poor nations are not able to bear the burden of paying back pending loans. The position of the poor countries is further worsened by existing poverty and low productivity.

Furthermore, the poor nations, which are already reeling under the burden of pending arrears further slide down, in terms of performance, on the economic, political and human resource front. These nations are trapped in a vicious circle; and the inhabitants of such nations are not able to reap any advantage from advancement and progress. This aspect severely hampers the prospects of even development on various fronts at the global level.

However, many experts claim that this reducing or writing off arrears would do more damage to nations stricken with poverty because such a move would make the political establishments of those countries complacent; make them dependent on such sops in future; and give rise to corruption, exacerbating the miseries of such regions. 

In conclusion, reducing or writing off debts might prove to be counterproductive for poor nations. Thus, such proposal should be enforced discreetly, after assessment of various essential aspects.