how burden of debt in developing countries not prevent government frm loooking aft basic need of individual?
since the projects that they had encourage government in developing countries weren't successful. the western banks wanted to lend money for these project to african country that were exporting minerals and agricultural products, but prices for these projects fall into collapse because of world economic slow down. some of loaned money gone into overseas bank accounts of corrupt dictators.
i really not know if this be it but i got lots more information i just not know how make it smalls and if i be able to post on here and you please tell me main details, or if this already be right.
okay i not know what happen to that word but it supposed to be countries.
That looks good, Mohammad.
thanks ms. sue :)
The burden of debt in developing countries can indeed hinder governments from meeting the basic needs of their citizens. Let me explain the issue and the factors involved.
1. Loans for development projects: Western banks often lend money to developing countries to fund various projects aimed at promoting economic development. These projects could include infrastructure development, healthcare, education, and other sectors.
2. Economic downturn and falling prices: When the global economy experiences a slowdown or recession, the demand for commodities such as minerals and agricultural products tends to decrease. As a result, the prices of these goods fall, causing a decline in the export revenues of developing countries heavily reliant on these sectors.
3. Debt repayment difficulties: With falling export revenues, the ability of developing countries to generate sufficient funds to repay their debts becomes challenging. This burden of debt repayment diverts a significant portion of the government's budget away from essential social services, such as healthcare, education, and poverty alleviation.
4. Corruption and mismanagement: In some cases, loans meant for development projects end up in the hands of corrupt dictators or officials. These individuals may siphon off the funds into overseas bank accounts for personal gain, leaving the country with even more debt and fewer resources for necessary public services.
To answer your question, this situation prevents governments from adequately addressing the basic needs of individuals because a significant portion of their budget is allocated towards debt servicing rather than social welfare programs. Additionally, the economic downturn and corruption further exacerbate the problem.
It's important to note that the issue of debt burden in developing countries is complex and can have various other contributing factors. The specific details of each country's situation may vary, so it's essential to examine each case individually to gain a more comprehensive understanding.