Running the Numbers
Recent news about debt relief for poor African nations might give the impression that governmental corruption, inefficiency, and irresponsibility are unique to developing countries. This is simply not so.
Take, for example, the situation of the United States government. As of June 14, 2005, the total outstanding U.S. public debt is $7,804,534,405,437.48. That amounts to a share of debt for each U.S. citizen of just over $26,000.
Take, for example, the situation of the United States government. As of June 14, 2005, the total outstanding U.S. public debt is $7,804,534,405,437.48. That amounts to a share of debt for each U.S. citizen of just over $26,000.
Comments
#1 2005-06-21 23:46 (Reply)
There is a big difference here. Developing countries the nationalization of foreign debt means that the burden of debt servicing falls on the govt and ultimately shrinks the social development that govt. can spend on the poor.
These debts were really the sad combination of irresponsible lending of foreign banks and of corruption and bad governance in developing countries. Our countries could not default on them because of the pressures exerted by WB and IMF.