The issue of global debt is the greatest issue in the world today faced by every country. The negative consequences are greatly faced by developing DEBT by COUNTRY. Without the cure of global debt, the uneven development issue will remain forever.
DEBT by COUNTRY
The problem is greater for developing nations because of their inability to service the needs of their nations. Their lower GDPs are a reason why they fail to service international payments. Poor countries like Pakistan, Bangladesh, Africa, etc seek loans from rich countries and other International Monetary Fund to work on their growth. But later the slow growth does not help these countries to give these loans back.
- For developing countries, it is important that aids should be increased instead of loans. Aid can help these countries to spend on welfare and growth programs which in the long run can contribute to the nation’s development. If rich countries are willing to help the poor countries then the way should be grants instead of loans.
- It takes long periods of decades for poor countries to pay the debt. A high percentage of its GDP is used to meet external loan repayments. The third world countries need debt forgiveness otherwise they simply cannot grow.