Essay on Debt: Developing Country and Debt

Submitted By JuliaKatkova
Words: 649
Pages: 3

Julia Katkova
Be it resolved that International Debt Forgiveness has not been integral to developing nations incurring setbacks in their economic development
80% of the world is developing! How can industrialized countries forgive developing country’s debts when only 20% of the world is industrialized? Would anyone, in reality, forgive a person who owns them money? I do not think anyone would. Even when looking at the developing countries they should pay back their debt. At least, they should be ABLE to pay back their debt. To do so, when developing countries borrow money from industrialized countries they should be building hydro dam and power lines to increase energy supply to factories, so they would be able to pay back their debt and also benefit from it. In addition, by doing so they could benefit from it by being able to pay back their debt as well as earn money from the factories and they also would be able to provide jobs for their citizens.
Another key to pay back debt completely is that it must be lower than a countries’ income. That is because when a country has to spend its income repaying debt that money isn’t available to provide all the other things governments do such as health care and education.
According to professor Janice Munro, professor in university of Chicago " The richer you are the more you can borrow, that does not necessary means that poor countries debt lots of money and that is why they are in trouble” in her response to an article "industrialized world should forgive the debt of developing countries".
For example, let’s imagine that a developing country's annual income is $1000 and they borrow the same amount of money. According to Lindsa Rowgow whom has been discussing developing and industrialized world issues for years said "According to researcher developing countries borrow more than their income". When a country borrows an amount of money that they will not be able to pay back they will need to use their annual income to repay their debt but if they use their income to pay their debt they will have no money to do anything for their country. They will no longer be able to provide the very basic to their citizens such as health care, education, housing, energy supply, food, or not even water! But if they borrow a good amount of money and plan well for that money they will be…