• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

International debt - how should it be rectified in Ghana

Extracts from this document...


West Calder High School Centre Number: 5502330 Advanced Higher Geography Unit 3: Geographical Issues Critical Evaluations Barry McGonagle Date Of Birth: 17.10.85 Candidate Number: 990875448 Barry McGonagle, Candidate Number 990875448 West Calder High School, Centre Number 5502330 Advanced Higher Geography Unit 3: Geographical Issues, Critical Evaluation 1 International debt - how should it 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 countries were forced to borrow extortionate sums of money from the developed worlds financial institutions, who were keen to take advantage of such countries vulnerability. The lending continued as Third World countries were forced to borrow more to pay back outstanding debt repayments and a further increase in oil prices in the early nineties saw many countries fall into irreconcilable amounts of debt. Figure 1: Map of Ghana's location (adapted from The Africa Debt Report, Page 21) ...read more.


Although the HIPC scheme requires governments to utilise the monetary benefits in abolishing poverty within the country, the fact that there is no social input to how the money should be used worries much of Ghana's poor inhabitants. The decisions on how to tackle the countries poverty are made by the government upon consultation with IMF and The World Bank; this makes a social analysis seem irrelevant. Even though the HIPC initiative has been subject to much criticism the World Bank maintains that it is doing its utmost to help Ghana out of its current debt predicament. Despite demands from Christian Aid to simply cancel larger amounts of the debt, the bank argues it has done as much as it possibly can. Operating as a business means the bank must adopt the most basic of business principles. This includes protecting the shareholders interests and ensuring they receive an adequate annual dividend. If the bank were to eradicate larger amounts of Ghana's debt and the then eventually the business would be forced into liquidity. The bank's liquidity would have huge implications on the global market and Third World countries would have to look elsewhere to find financial aid. ...read more.


In my opinion organisations such as the World Bank initially exploited the poorer nations financial fragility for their own benefit by offering loans disguised with low interest rates which were to rapidly increase once the amount had been agreed. I feel there must have been some degree of deception involved in the initial lending process, as I don't believe so many astute Third World governments would enter into agreements which they knew they could not fulfil. Much of the information I found on the World Bank contained an element of bias. The articles from which I extracted much of my information were written by directors and senior members of the bank, who will almost indefinitely be shareholders. The fact that less debt relief would mean higher profits and therefore higher dividends I feel would influence their perspectives when writing articles regarding the Third World debt crisis. In order to balance my essay I made use of the Guardian newspapers articles concerning debt in Ghana, as I felt they were written in such a way that all points were portrayed clearly and accurately without bias. Sources www.worldbank.org www.jubliee2000uk.org www.christain-aid.org.uk www.guardian.co.uk/debt Bradley. E & Cunningham. R Core Themes In Geography: Human Oliver & Boyd Various Authors The African Debt Report Jubilee 2000 Coalition Page 21 Word Count: 1, 459 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    What is an international bank? How do international banks compete?

    4 star(s)

    This original bank will assess the credit awareness of the borrowing company and will look for other banks to divide the loan with. The borrower will only deal with the original bank as it will be the one managing the loan.

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    The "global problems-global solutions" thesis is predictably laced with an emotive, intuitive do-it-yourself economics.12 It has a false diagnosis of globalisation's effects and the role of the nation-state (as I will argue in due course). Furthermore, its prescriptions, if realised, would damage the life-chances of the world's poor, for example

  1. Will trading fairly reduce world poverty?

    Some observers believe that poorer nations spending more on defence seem to attract greater levels of aid. This suggests that aid may not be just directed towards eradicating poverty. It might also be meeting the donors' strategic military objectives. (Source: http://www.channel4.com/news/microsites/T/tsunami/aid_3.html)

  2. There are 3 areas to judge for sustainability. 1. Economic sustainability. 2.Social sustainability. 3. ...

    MNCS may of course act ethically, most try as they will be exposed by the media and lose sales. However in remote parts of the world subcontractors working for clothing chains etc may carry out unsustainable practices.

  1. Interpol is an abbreviation for international police, which is the largest international police organisation.

    for example, in fact it will most probably lead to a worse reputation. In the mean time Interpol is assisting the west and providing them with intelligence against the third world. A big problem Interpol is confronted with but also knows about, which makes them look not so good.

  2. Explain the evolution and characteristics of the debt problems of LDCs. In the light ...

    debts by individual governments and commercial banks3, and aid donated to LDCs. Debt takes a number of different forms. Before the 1980's, much of the borrowing by LDCs, especially in Latin America, was in the form of bank loans from commercial banks, lent at commercial rates over 5-7 years.

  1. In this report, we shall explore the reasons for the shift from multilateralism to ...

    This new regionalism mostly comes through the approach of bilateral agreements, both inter- and intra-regional6. Table 6 shows a list of proposed and actual regional trading arrangements undertaken by some East Asian countries. Singapore has been one of the countries that is most aggressive in initiating bilateral agreements with other

  2. Managing Environment - A report on investing in Ghana.

    (SA Department of Trade & Industry - 2002) In less than a decade, South Africa has become one of the top 10 investors in, and trading partners of many African countries, displacing European and American companies which traditionally held the high ground, particularly former colonial powers.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work