There have been claims that these debts have been a continuation of the legacy of colonialism in the way they are given out without looking at the way in which they will be repaid. 1
The jubilee campaign has been a debt calling for eth cancellation of more the $400 billion which the developing nations owe to the G8 countries. It is a campaign that has taken a moral direction on the way these debts have been issued and the legality of these debts in light of the world unequal distribution system of the world. The campaign has been calling for the cancelation of the debts in light of the fact that while the whole nation continue to be paying for the debts, most of them are not used to build the interest of the while nation but rather they are channel to build the interest of the few individuals who are in the leadership of these countries. These debts therefore have a lot of negative impact on women and children, education, climate change, heath sector and the general welfare of the society. The campaign has realized some progress as some debts totaling to $88 billion has been cancelled off but there is a lot that is to be done. The main assertion of the campaign is that most of the debts can be attributed to irresponsible lending decision.
Although the developing nations have also been blamed for the increased debt d...
The paper look at the case of the helping the poor nation and the moral issues that surrounds. Then it will look at how the developing world has accumulated these debts and the role that developed nation has played. Finally it will set the agenda on what could have been done in order to reverse the situation.
Debt as a continuation legacy of colonialism
The history of debt in the developing nations has been described as legacy of great siphoning off of their resource by the international financiers. It has been described as unjust process which is used by the rich and developed nation in order to siphon the resource of the developing nations and to ensure that the developing nations live under the shadow of their will. It is a process that has been designed in order to perpetuate itself using a diabolical mechanism where debt replicates in an even greater scale to create cycle that can only be broken by the use of debt relief mechanisms. 2
There have been claims that the process of debt creation in the developing world has been result from unjust transfer to them the debts that they have been accumulated in a colonizing state. To support this argument there is a lot of evidences that shows that a massive $59 billion in form of external debts to the developing world was transferred to the independent state when they were given independence in 1960. The debts have been increasing at a great rate of about 14 percent since then as a result of the unilaterally set rate. This has led to high rate of increase of these debts. Even before the new independent state got time to organize their economies, there were their lenders knocking on the door to get their money back. In order to understand the cycle of debt well,