Unsustainable Debt Essay -- Economics

Unsustainable DebtMany ordinary citizens today in developed countries such as Canadaacknowledge the abject pauperization affecting citizens of various Africancountries and other undeveloped nations. However, exactly why thesecountries are in this position appears to be a mystery, despite many notes grants, relief efforts, and aid are delivered to these countriesby various Western organizations amidst great media attention. Inaddition, it also seems natural that such undeveloped countries shouldhave a sort out flow of capital moving towards them from wealthyindustrialized 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 debate those found today2. Undoubtedly povertyexisted in the world. In fact, both the worlds economy and the globalGNP figure were far smaller in comparison to move over day figures3.However, the fact that poverty existed in many countries did not implythat the inhabitants of those countries lacked basic necessities suchas food, water, adequate shelter, and basic health services. Thispresent military post of utter poverty is a result 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 John Serieux. Journeys scarce Begun. (Canada Renoult Publishing Co. Ltd., 2000) 28.9 Cheryl Payer. Lend and Lost. (United Kingdom Zeb Books Ltd., 1991) 27.10 Roy Culpepper. Journeys Just Begun. (Canada Renoult Publishing 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 Press 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.