Unjust debt burdens trap poor countries in a cycle of debt, poverty, and poor health. Here's how it works.

1. The Debt Trap
21st Century Colonialism
growing unjust debt
burden on poor countries
debt restructuring
processes that
often worsen debt
creditors preying on world’s
poorest countries
coerce poor countries into
loans with unsustainable
interest rates
weak health
systems, education,
and infrastructure

2. foreign governments
financial institutions
give money to corrupt leader
who takes control over
country & establishes a
dictatorship
1
Poor Countries

3. 2
knowingly provide loans to a
dictator
It’s development!
we can use this as
leverage for our own
political interest
This feels like
colonialism still…

4. 3
Dictator uses loans for personal
wealth & to pay off local elites
and increase state security
freedom
of speech!
healthcare!
education!

5. Years later…time to repay debts
I don’t have
the money!
Offshore personal bank
accounts
capital flight
4
Health system
Education
Infrastructure
Debt burden
Country Indicators
foreign
commercial
banks, investors

6. 5
Structural Adjustment Programs (SAPs)
We’ll help you
restructure you debt!
aka AusterityThis doesn’t seem
helpful…
Reduce employment
Scale back health and education systems
Increase prices for basic goods
Devalue your currency
Increase capital flight
Mix loans together so they’re impossible to track
Extract natural resources for foreign profit
Foreign control over national policies
Worsening debt
More for me!

7. or
I’m rich!
I’m leavingI’m not a
dictator! I’m
an “elected”
president
now!
6
Have these new
loans to pay back
your old loans!
Growing Debt Burden
on Poor Countries

8. The Debt Trap
21st Century Colonialism
growing unjust debt
burden on poor countries
debt restructuring
processes that
often worsen debt
creditors preying on world’s
poorest countries
coerce poor countries into
loans with unsustainable
interest rates
weak health
systems, education,
and infrastructure