Unsustainable Debt Essay -- Economics

Unsustainable DebtMany ordinary citizens today in developed countries much(prenominal) as Canadaacknowledge the abject poverty affecting citizens of various Africancountries and other undeveloped nations. However, exactly why thesecountries ar in this part appears to be a mystery, despite morecash grants, relief efforts, and attending are delivered to these countriesby various Western organizations amidst great media attention. Inaddition, it also seems natural that such undeveloped countries shouldhave a net fuse of capital moving towards them from wealthy industrialise nations such as Canada. On the contrary, a net flow ofmoney has actually been directed towards the industrialized nationsand various financial institutions from these impoverished countries1.This fact has failed to achieve much media coverage, if any.Figures on poverty levels of the early 1950s, following the SecondWorld War, do not reflect those found today2. Undoubtedly povertyexisted in the world. In fact, some(prenominal) the worlds economy and the globalGNP figure were far smaller in comparison to present day figures3.However, the fact that poverty existed in many countries did not implythat the inhabitants of those countries lacked basal necessities suchas food, water, adequate shelter, and basal health services. Thispresent situation of utter poverty is a dissolving agent of the debts and debtservice payments an enormous burdens on these countries. Far greaterpercentages of capital and resources are spent each year on interestpayments resulting from these debts by the debtor nations than onvital services such as education, health care, and basic socialinfrastructures4. Without the debts and debt service payments, suchcountrie... ...., 1991) 54.8 conjuring trick Serieux. Journeys Just Begun. (Canada Renoult produce Co. Ltd., 2000) 28.9 Cheryl Payer. carry and Lost. (United Kingdom Zeb Books Ltd., 1991) 27.10 Roy Culpepper. Journeys Just Begun. (Canada Renoult Publi shing Co. Ltd., 2000) 32.11 Roy Culpepper. Journeys Just Begun. (Canada Renoult Publishing Co. Ltd., 2000) 33.12 Gianni Vaggi. From Debt Crisis To Sustainable Development. (Great Britain The Macmillan cheer Ltd., 1993) 117.13 UN Economic Commission for Latin America. Debt Adjustment and Renegotiations in Latin America. (USA L. Rienner Publishers, 1986) 34.14 John Loxley. Debt Disorder External Financing for Development. (USA Westview Press 1986) 162.15 John Serieux. Journeys Just Begun. (Canada Renoult Publishing Co. Ltd., 2000) 29.