Causes of financial crisis pdf

This page looks at the geopolitical, political and economic context in which the current third world debt crisis came about. Third world debt has long been recognized as a major obstacle to human development. Many other causes of financial crisis pdf have arisen because of the enormous debt that third world countries owe to rich countries. Debt has impeded sustainable human development, security and political or economic stability.

The history of third world debt is the history of a massive siphoning-off by international finance of the resources of the most deprived peoples. This process is designed to perpetuate itself thanks to a diabolical mechanism whereby debt replicates itself on an ever greater scale, a cycle that can be broken only by canceling the debt. 59 billion external in public debt was imposed on the newly independent States in 1960. With the additional strain of an interest rate unilaterally set at 14 per cent, this debt increased rapidly. Before they had even had time to organize their economies and get them up and running, the new debtors were already saddled with a heavy burden of debt. Odious debt is unfair debt resulting from illegitimate loans.

Odious debt is an established legal principle. Legally, odious debt is debt that resulted from loans to an illegitimate or dictatorial government that used the money to oppress the people or for personal purposes. Moreover, in cases where borrowed money was used in ways contrary to the people’s interest, with the knowledge of the creditors, the creditors may be said to have committed a hostile act against the people. They cannot legitimately expect repayment of such debts.

Jubilee USA continues on to note that this principle has been used by the US to prevent Spain imposing debts on Cuba in 1898, as the US pointed out to Spain that those loans were imposed on Cuba by force, for Spain’s interest. Many poor countries today have started their independent status with heavy debt burdens imposed by the former colonial occupiers. South Africa as another example, has found it now has to pay for its own past repression: the debts incurred during the apartheid era are now to be repaid by the new South Africa. Southern Africa want to rebuild. In a remarkable spirit of reconciliation, the people of Southern Africa want to forgive the horrors of the past and look forward. But the banks, international financial institutions, and individual countries which lent to both sides in the apartheid war are demanding repayment.


Related Articles

Original kamasutra book in hindi free download pdf

The Kamsutra is one of the world’s original kamasutra book in hindi free download pdf popular books on the art

Pathfinder blood of the elements pdf

This is a good article. Follow the link for more information. Outstanding Art Direction for a Series, Richard D. Data,

Why wont my chrome book not open a pdf

why wont my chrome book not open a pdf 12 12 12 12-5. 449 1 1 0 . 13 7