TOPIC:- The international community should reduce or eliminate the debt of the world's poorest countries. To what extent do you agree or disagree.
financial aid in terms of debt
Nowadays, it has been observed that the developed countries provide financial aid in terms of debt, to the under-developed nations. There is a proposal to either completely waive-off or lower down the debt given to these countries. I partially agree with the proposal.
On one hand, completely writing-off or reducing the debt of the poorest countries will help in the growth and development of these countries. By taking financial aid from the developed nations, the underdeveloped countries are trapped in a vicious circle. They utilize this amount to improve the infrastructure of the country and in providing an efficient and advanced healthcare facility to its citizens. However, in order to pay back the loan amount along with huge interests, they end up utilizing their nations reserve. Henceforth, by waiving off the loan amount, they would concentrate on implementing measures on improving the economic conditions and the standard of living of the population instead of diverting their focus on exploring options of paying back the amount.
On the other hand, lowering or nullifying the debt amount of the underdeveloped nations would create a negative impact on the developed countries. As per the international treaties, legal and ethical rules and regulations have been laid down to provide financial aid to these countries. Exempting the poor countries from financial liabilities will be considered, a biased approach. This would create negativity and may disturb the peace and harmony of the nations across the world.
In my opinion, it is a good option to lower down the debt amount of the underdeveloped nations to boost their economy. However, the amount should not be completely waived-off. As these nations could take undue advantages in the future, by making it a practice. They could completely get dependant on these financial aids for the development of the nation.
To conclude, reducing or eliminating the loan amount of the poor countries can contribute to the overall growth of these nations. However, this could lead to unrest in different parts of the world. Henceforth, the proposal should be planned wisely before executing it.