Quote:
Originally Posted by The_Heretic
But what hampers a third world's economy is holding debt over their heads like an axe. One of the best arguments for debt forgiveness is that how can a poor country pay debt when that very debt prevents them from earning enough. So if they stay in poverty due to debt then it never gets paid and forgiving the debt costs nothing when all things are considered.
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Most debt was forgiven back in the 80's(actually the countries just defaulted)...now, the World Bank and the IMF have set up "condititionality" in order to prevent them from defaulting on the loans and to ensure that they will take the necessary steps to grow economically.