The international community should reduce or eliminate the debts of the world’s poorest countries. To what extent do you agree or disagree?
Some believe that financial assistance provided to underdeveloped nations should be waived off by developed countries. I completely concur with this proposal and shall be elucidating my stand in upcoming paragraphs.
Developing nations are incapable of providing necessities to their inhabitants, and the conditions are exacerbated when they have to repay the money loaned to them, pushing them into a perennial cycle of repayments and taking bridging credit to meet the installment deadlines. However, If their financial burden is alleviated, they will have enough to provide their citizens with basic facilities, such as food, shelter and health; and develop infrastructure like education, employment venues, transportation. This is likely to bring the natives of the destitute societies closer to acceptable living standards that afford all the facilities, as well as earnings to afford a comfortable life.
Moreover, this would prove to be highly advantageous for affluent regions as they would be in a position to harness cheap labor, infrastructure and resources of the beneficiary nations, developed after investing the money saved from debt repayment. Similarly, businesses of donor countries will be able to create new markets for their goods and services. For instance, several regions in Asia, Africa and Latin America have emerged as promising markets for mobile phones like Apple; cars like BMW; and electronic appliances such as General Electric, helping large organizations of elite nations to flourish globally. Above all, this will help mitigate the pressing problem of influx of illegal refugees into prosperous countries from extremely destitute nations.
Overall, it can be safely asserted that this step will have a positive influence on the global economy. Where the impoverished nations will enjoy better standards of living, the benefactors will yield rich returns in the form of cheap resources and stemming certain challenges.
