PTE Essay – Should rich countries forgive all debts for poor countries

As a result of normal economic activity, all countries are under some kind of national debt. But some developing countries are crushed under huge debt as they have not been able to pay back, maybe because they were not able to grow/develop as rapidly as they were expected to. As a consequence, many poor countries have not been able to exit from extreme poverty.

Debt-ridden countries reportedly spend four times on loan repayment than on their health. There is no industrial or economic progress in these developing nations, it has reversed, instead. It would be better if their debt is canceled or reduced as many countries struggle with paying the interest alone, the repayment of actual amount is a far-off cry.

Cancellation of debt would not only help poor countries but as these countries develop, the world’s economy would improve. Trade would increase and there would be the reduction in global poverty.

But debt reduction alone is not sufficient. The governments of these developing countries and external partners also need to take action to improve repayment capacity. Other aids should be provided to opening schools and health care centers which will significantly improve the lives of the people of poor countries.

Many argue that debt of poor countries should not be forgiven because it’s not our concern how they are going to pay back, they took loan so they must pay it back, etc. But how are the governments of these nations ever going to pay back when their economy is totally broke? They can not even have food on their plates, how is it possible for them to pay back loans?

To be able to pay back, these nations must have basic necessities for the public first. The external aid can definitely help them. And once they are on the path of development, they ‘ll eventually start paying off their debts. Moreover, the extreme poverty and hunger will be eradicated, the goal of universal primary education would be received, child mortality would be reduced, global sustainability would be ensured.

The countries which forgive loans are not at a loss either. They gain in a multilateral way, through the development of the global trading system. The governments of countries crushed under debt do not know how to manage the funds or grants provided. They need to be helped with that too. A lot needs to be done.