Third World Debt Essay - 1151 Words

Third World Debt In 1957, Ghana, a promising and growing African country, had a higher gross national product than the East Asian country of South Korea. Presently, however, South Korea is an industrial powerhouse- one of the ‘four dragons’ of Southeast Asia, while Ghana’s development is on a landslide- its gross national product is lower than it was at independence. This sort of economic development discrepancy between Asia and Africa is†¦show more content†¦However, East Asia has avoided heavy external debt through successful debt control and management policies. As a result, the extensive burden of a large debt is not of major concern to East Asian countries, allowing them to focus on economic development. Furthermore, in terms of economics, Asia has managed to diversify its economic sectors, not relying on a single commodity or raw material. For example, the oil rich country of Indonesia used its significant profits from the oil boom in the 1970’s to actually invest in other industries so it would not be susceptible to price shocks in oil. The African country of Nigeria, also rich in oil, used its profits to borrow heavily, increasing their debt and oil dependency. Nigeria’s economy is reliant on oil for 95 percent of its export earnings and 80 percent of its budget receipts. Therefore, a price shock in oil has devastating effects on Nigeria, while Indonesia is able to reduce and possibly avoid these ramifications. Impractical debt management and the dependency on single sectors are major reasons why Africa lags well behind Asia in economic development. The African-style of governing and continuing problems with corruption also greatly hinder growth. After gaining independence, a number of African countries like Zambia and Tanzania, firmly believed in socialism, an ideologyShow MoreRelatedThe Debt Of The Third World Countries942 Words   |  4 PagesIs it possible for the first world countries to forgive the debt of the third world countries? It is possible if the first world countries can afford to lose money and resources to help other countries. If the first world countries do not cancel the debt then the third world countries debt and loans is going to increase. It going to cause the value of the money currencies to drop and the cost of the debt is going to rise. The debt is also causing the third world countries to delay from increasingRead MoreThe Third World Debt Crisis1740 Words   |  7 Pagesof now there are many third world countries that are in debt and the one that I am going to be focusing on mostly is Africa. Th e third world debt crisis has to do with some of the poorest countries around the world that are in deep debts because they are not able to pay back loans that they were given to a while back. It is very hard for them to come up with the money and as time goes on little by little the amount keeps on increasing. This debt started back when first world countries had very largeRead MoreThird World Debt2776 Words   |  12 PagesUnivesiti Utara Malaysia FACULTY OF INTERNATIONAL STUDIES International Political Economy GFPP 3113 Individual Research Paper Prepared for: Dr. Christopher Wylde Prepared by: Arnold Garibaldi Soewondo 107646 â€Å"All the Third World Debt Advanced by the Developed Countries should be Cancelled Immediately† Introduction In the late of twentieth century, the worldwide has spread with the political and economic liberalism. There is no single country would be able to survive withoutRead More Assess some of the ways in which Third World Debt might be reduced.1100 Words   |  5 PagesAssess some of the ways in which Third World Debt might be reduced. Despite the overwhelming number of statistics and indicators, global poverty is as hard to measure as it is to conceptualize. One fact is undeniable: someone is going to have to pay for past debts. It could be the people in debtor countries, or the banks, or the people in advanced industrial countries. Most likely it will be some combination of these three groups. In the last ten years, there have been a variety of proposalsRead MoreHow Should International Debt be Rectified in Ghana? Essay1244 Words   |  5 PagesHow Should International Debt be Rectified in Ghana? International debt is a modern geographical issue which has sparked much controversy in the past and continues to affect our global community to this day. Through this essay I aim to analyse contrasting viewpoints and conclude with my own perspective of the current situation, having digested the main arguments. The debt crisis originated in the 1970s due to considerable increases in oil prices. Developing countriesRead MoreAmerica s Stand Point On The Ordeal1565 Words   |  7 PagesEnglish 20 October 2014 America’s Megalomaniac Urge to Put Others First Lesley Boone once said, â€Å"We are a country that prides itself on power and wealth, yet there are millions of children who go hungry every day† (Johnson, p.38). When people think of world issues, many do not consider America’s stand point on the ordeal. They are unable to fully comprehend the growing lack of jobs, poverty, hunger, poor health care, and meager education that takes place across the nation. American charity foundationsRead MoreThe Principles Of Debt Alleviation, Fair Trade Policies, And Economic Inequality1734 Words   |  7 PagesIn terms of world impact, no ideology has irreparably shaped the course of history like neoliberalism. Its core tenets of free markets would inform the policies imposed on developing nations. The assumption among particularly Western nations would be that developing nations would need to advance to become modern capitalistic societies just like them. However, the efforts to reach that ideal would lead to more harm than good. Neoliberalism has resulted in heavy debt for developing nations, unequitableRead MoreThe Dangerous Outcome Of The Unethical Selling Strategy1020 Words   |  5 Pagesmoney let the Third World Countries stuck in poverty. At the end of last century, the Third World countries owed more than 1.3 trillion dollars to the first world countries. Of the total developing-country debt, most of debts are borrowed from the private banks, such as Citibank and Chase. Agents of private banks travel around the world to convince the Third World leaders and politicians to borrow from them, and the bank convinced those politicians in unethical ways. â€Å"Third World debt grew rapidlyRead MoreThe Expansion Of The Global North And Global South1540 Words   |  7 Pages having elevated the developed world to middle-class mass consumer status, is now moving in space to the former colonies and time to the 19thcentury in terms of labour costs and conditions.† It seems as if the modern world system is moving back to its era of colonisation for promoting unequal power-relations between the global North and the global South. Of course, this notion holds the truth as the North is home to the powerful, global leaders who shaped the world structures and institutions underRead More Child Labor in the Third World Essay1195 Words   |  5 PagesChild Labor in the Third World The problem of child labor has become an ever-increasing concern among many nations. Many of the worst child labor offenses take place in Third World countries. Throughout these nations, children are being forced to work long hours in terrible conditions for little or no money. To fully understand child labor, one needs to address the reasons for supporting and opposing child labor, its effect on underdeveloped countries’ economies and the child laborers, and what