Should 3rd world debt be cancelled?

Authors Avatar by khalil_1 (student)

Should third world debt be cancelled?

I am writing about the third world debt and why they should be cancelled, for numerous reasons. Third world debt is the poor developing countries of the world repaying loans borrowed by their leaders around the 1970’s to MEDCs (more economically developed countries). An example of a country with third world debt is Ghana, just one of the countries from the 32 in Sub-Saharan Africa which are in debt. Ghana borrowed a huge amount of money from another country to build the Akosombo dam. They are in debt because they thought it would make them a lot of money out of which they would repay the other country, but it isn’t going as good as they assumed it would and left them hanging in debt.

I think they should cancel the third world debt because debt is the thing keeping LEDCs poor. E.g. Kenya spends as much on debt payments as it does on water, health, agriculture, roads, transport and finance combined together. Because of this, Kenya can’t keep any money for themselves to develop the country, but instead have to keep giving all their earned money to MEDCs.

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Another reason why the third world debt should be cancelled is people born now are spending their lives repaying debts for their corrupt leaders in the 1970’s even-though it’s not their fault; this is clearly not fair! Because of loans from the past, they can’t get on with their own lives.

Furthermore, the debts should be cancelled because some loans were taken out die to the lenders bad advice. E.g. Bataan nuclear plant in the Philippines was built in an area at risk of earthquakes and has never been used. The Philippines still had to repay over $1.5 billion to ...

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