Debt Forfeiture

Should rich countries forgive all debts for poor countries?

There is a big difference between rich countries and poor countries. Rich countries can sustain themselves and also provide for their citizens. Poor countries require improvements in major areas such as health, business, and education to develop and sustain themselves without having to borrow loans. Richer countries should take the initiative and responsibility for helping the poorer nations in such areas. Most poor countries are having a difficult time trying to sustain themselves and also pay the debt (Ricupero, 2000).

According to the current statistics, the average per capita income in most of the indebted nations barely reaches a dollar a day.

Paying debt is becoming a burden to most of these poor countries. In fact, it has been absorbing more than 5% of their economy every year. Some Sub-Saharan countries are having critical economic problems, and their resources are also running low. With all these to bear, it is not fair to continue increasing their debt every year. It is unacceptable on both economic and ethical grounds.

Because of these conditions, poor nations become more and poorer as rich countries continue being richer (Economist, 2003). To balance and improve the conditions in these nations, rich countries should sacrifice and forgive all debts for poor countries. Unless this is done, poor countries will lack behind when it comes to social amenities and even development as their debts keep increasing every year. The problem might not be solved by relieving them their debts, but it would create room for them to improve economically (Yadav, 2012).

My opinion is that rich countries should forgive debts for poor countries however it should only be done to a certain limit. This will relieve the poor countries from the burdens such as loans, unemployment and poverty.