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Unsustainable Debt

Powerful Essays
Unsustainable Debt

Many ordinary citizens today in developed countries such as Canada

acknowledge the abject poverty affecting citizens of various African

countries and other undeveloped nations. However, exactly why these

countries are in this position appears to be a mystery, despite many

cash grants, relief efforts, and aid are delivered to these countries

by various Western organizations amidst great media attention. In

addition, it also seems natural that such undeveloped countries should

have a net flow of capital moving towards them from wealthy

industrialized nations such as Canada. On the contrary, a net flow of

money has actually been directed towards the industrialized nations

and various financial institutions from these impoverished countries[1].

This fact has failed to achieve much media coverage, if any.

Figures on poverty levels of the early 1950's, following the Second

World War, do not reflect those found today[2]. Undoubtedly poverty

existed in the world. In fact, both the world's economy and the global

GNP figure were far smaller in comparison to present day figures[3].

However, the fact that poverty existed in many countries did not imply

that the inhabitants of those countries lacked basic necessities such

as food, water, adequate shelter, and basic health services. This

present situation of utter poverty is a result of the debts and debt

service payments; an enormous burdens on these countries. Far greater

percentages of capital and resources are spent each year on interest

payments resulting from these debts by the debtor nations than on

vital services such as education, health care, and basic social

infrastructures[4]. Without the debts and debt service payments, such

countrie...

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1991) 54.

[8] John Serieux. Journeys Just 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.
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