provision of loans to LEDCs should be finished
Debate Rounds (2)
Once a country gets into debts they are hardly ever able to pay them back that creates a lot of problems to the people living in that country as they are the one who have to give taxes.
then not all the politicians are good enough to utilize the money for the betterment of the country but they put the money into their pockets and demand for more funds. so i say that yes, the provision of loans to the LEDCs should be abolished.
For a start, there is negligible chance that an underdeveloped nation will be able to freely compete on the international stage considering the relative dominance of Europe and the Asia Pacific, as shown by the first graph on http://www.unescap.org...
This oligopoly means that the chance that an underdeveloped nation has in raising the profile of its current accounts using only internal sources is very small indeed.
Also, there are some countries who have really benefitted from the provision of loans from MEDC's to LEDC's. Egypt pre- Arab Spring is an excellent case to look at. Traditionally, Egypt has always had a large workforce but not the investment or government budget in order to put these workers into jobs which shall aid the progression of the nation from LEDC to MEDC. Large loans from the United Kingdom, amongst other countries allowed for large-scale projects such as the Aswan Dam. It is fallacy to believe that Egypt would have been able to find the $1 billion required in order to finance such a project. From that stage in the late 60's, Egypt has gone from strength to strength and is now considered as a future player on the world stage. The Arab Spring has dampened such aspirations but their progress using international loans is undeniable.
But loans and grants from MEDC's to LEDC's must be continued in order to give nations the opportunity to develop without meeting the humanitarian problems of nations such as China. How else can nations develop in this day and age in a world community which is in almost unanimous agreement upon the concepts of capitalism.
I shall also point out that that there is now a lot of different criteria that nations must meet in order to qualify for a loan. A list of these criteria can be seen in the link below:
Since the year 2004, the countries being lent funds have had a very good track record of repaying those funds to the IMF or international aid which is provided by the more advanced nations. Of course there are going to be cases where such aid does not fit the country's situation, but this does not mean that aid that could benefit millions of people could and should be cut off.
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