Debt Crisis

9 Pages 2198 Words

d on three premises: First, HIPC’s (highly indebted poor countries) cannot pay; Second, Strong arguments of persuasion are necessary to convince creditors to remit the debt repayments due to them; Finally, there are strong reasons for removing or reducing debt burden (Peters and Dents 391). Basically, it is found that remission of debt is necessary to help developing countries to proceed with their development and they do not have to suffer being unable to pay debt again. Countries should be forgiven of paying their full debt amount and they should only have to pay a small amount over a period of time. Countries with debt run into problems when improving their economy and their living standards due to the debt burden. In order for developing countries to reach the economical or technological level of Canada some of their debt needs to be remitted once and for all.

Froning argues that the major problem of poverty is not because of lack of resources but because of bad leadership. In order for poor countries to succeed economically they must have access to markets of developed countries (Froning 411), and a good trade policy. There are many solutions to the debt crisis such as: 1) forgiving debt , the World Bank and the IMF should forgive the debt owed to them by HIPC’s in order to for those countries to achieve economic growth. 2) Remove barriers to globalization; 3) encourage trade; with the establishment of a common trading system the cost of trading with neighboring countries will be cheaper. 4) Eliminate quotas on HIPC; entry fees to join the global economy should be lowered for HIPC. Countries will succeed no matter how big or powerful they are, as long as their problems are being addressed and as long as t...