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3rd world Debt....
Waldo mentioned the debt situation in an answer below. I agree that we should cancel the debt but I also think that in the process we should stop them getting back there again, I mean is there any way we can "cut up thier credit cards" so that, like an out of control shopaholic they don't just slip back into debt again? They got into debt in the first place didn't they so clearly there is a propensity for over spending. Any comment/Ideas ?
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Ignoring the very complex historical reasons - exploitation by other territories etc - the reason that these debts have occured is because of the way in which trade rules restrict these countries abililty to control their own economies. One of the key objectives of Make Poverty History is addressing the political issues that sustain the poverty traps and changing these trade laws.
Just cancelling the debts and/or providing more aid will not cure the problem in any long term way. If we learnt anything from Live Aid, it is that throwing money at the situation is not enough.
Sorry, to specifically address your comment about "a propensity for over spending" I would like to add that the debts we're talking about consist of compound interest on compound interest, meaning that the countries are expending vast proportions of their national income just paying off the interest - and failing.
Aid is often granted dependent on countries liberalising their ecconomies and allowing foriegn companies to set up. This typically has the net result of resulting in a net outflow of capital from the countries, again, further empoverishing the population. These are the kinds of trade agreements MPH wants to see scrapped.
Instead of cancelling the debt would it not be possible to cancel ALL the interest and leave the countries concerned to pay the original loan back?
This would help those who do not want all debt cancelled as that would affect their chances of borrowing sensibly in the future.
Even nations have a credit rating !
I would like to add that I am in favour of helping in the best way possible, and have been invilved in charities working to cancel these debts.
Also to add that a lot of this debt was actively encouraged by certain western countries - particularly those who benrfited by the spending of the loan money.
This would help those who do not want all debt cancelled as that would affect their chances of borrowing sensibly in the future.
Even nations have a credit rating !
I would like to add that I am in favour of helping in the best way possible, and have been invilved in charities working to cancel these debts.
Also to add that a lot of this debt was actively encouraged by certain western countries - particularly those who benrfited by the spending of the loan money.
Any chance they could take the stand of 'charity starts at home' and wipe the debts this country has? Just a thought and said very tongue in cheek but the words 'throwing good money after bad' keeps springing to mind. Who can afford to take a day off work to go and protest at the G8 conference??? Certainly not me - I also have debts to pay!
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