Third World Debt

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Third World Debt
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World Debt Introduction

• Third World Debt is a situation where many
  developing countries have amassed high debts and
  the amount of money they owe to wealthy creditors
  is rapidly accelerating.
• Attempting to pay off the debt service for a
  poor nation has become a severe problem for these
  countries and it causes great hardship for their
  people.
• The amount of money owed by developing
  countries has increased dramatically since the
  early 1980's.
• These countries now owe money to commercial
  banks and also to organisations like the World
  Bank, the International Monetary Fund, and to
  First World governments.

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Countries In Debt
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Graph Showing Trends In Debt
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Causes Of World Debt

• Oil producing countries pegged to the dollar
  affected as value decreases.
• In 1973 Oil producing countries hiked prices
  resulting in more money being earned that was put
  in the western banks
• Interest rates plummeted resulting in more
  lending by banks.
• A lot of borrowed money went to western backed
  dictators.
• In 1982 Mexico defaulted on debt payment.
• The world Bank and IMF prescribed loans etc.

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The Effects Of Severe ThirdWorld Debt

• The Nations People
• How the land lies
• The Good Effects?
• The Bad Effects
• Economic Activity

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Countries That Are Owed Debt The Wealthy
Creditors

• The Main G8 Countries That Are Owed Money From
  The Poorer Third World Nations.
• The Key Question Has any debt actually been
  cancelled by these powerful countries?
• Are there any assistance schemes
• In Place To Ease The Global Issue Of Debt?
• What are the short term and long term
  consequences of cancelling vast amounts of debt?

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Case Study Of Nicaragua

• Investigating Into The Repayment Concerns Of One
  Of The Statistically Poorest Nations In The
  World.
• Looking At The Consequences Of Borrowing Finance
  From Powerful Nations.
• Understanding The Typical Living Conditions Of
  Nicaraguan Citizens.
• Finding Possible Reasons And Solutions For Their
  Desperate Financial Circumstances.

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Solutions

• Boycott Large banks
• Move Your account to an ethical bank
• Propose to Supportive A Debt Union
• Help Protest To Parliament Members
• Campaign Against World Debt