A Burden of debt.• Many of the World’s countries are poor. They do not have clean water supply, food, electricity and other recourses. So they need millions of dollars to run their countries and improve their lives. This is also one of the most important reason which made many of the countries lag far behind in development!
How the debts arose.• Many of the poor countries borrow money from the rich countries to develop themselves. They borrow loans from World Banks , International Monetary Funds (IMF), High Street Banks and other governments and promise them to return it as soon as possible along with the interest.
Why the lenders were happy to land?• The richer countries happily lend plenty of money because they knew they have enough.They would collect interest each year too.
The Result!• The result is that, soon the poor countries are unable to return the money so they have to close the schools and hospitals and apply more taxes on people.
Tackling the problem!• People in richer countries put pressure on their government to cancel all the third world debts.