Thu Doan_ topic4

Through the history, the gap between industrialized and developing countries has been widening. It has resulted in enormous debt burden of poor ones. From this evidence, some people insist that the rich should forgive all debts. I, by contrast, do not agree with them.

There are several reasons for wealthy countries to give more and more financial supports to poor nations, but we can divide them into two main groups, namely charity mission and economic purposes. Charitable task involves providing loans with generous interest terms as well as longer paying debt time in order to boost domestic economy. In contrast, giving loans to seek profits through market interests or to gain big advantages in foreign trade, etc.… results in lucrative goals. Nevertheless, whatever the rich aim to, easing debt will have bad effects.

In view of humanity, free to pay loans responsibility makes the gulf between rich and poor enormous. If low-income countries are not under pressure to repay money, they will use finance less effectively. They will invest in projects without carefully considering. Therefore, they just gain a slow advance, while the others develop faster and faster. This means that the gap will continue widening.

Next, the rich never invested in which they do not have benefits. In fact, to get low- interest credits, of course, less developed countries must exchange for economic and political dependence. We can find concrete evidence from Africa. On having been providing low-interest loans and forgiving several former debts for Africa, China has ruthlessly exploited metal ores legally. Consequently, it has destroyed environment in these countries, and increased social inequality. Currently, it have been meeting with resistance from natives, which must make it have fewer profits than expected. The rich must have fell into this way if they still follow forgiving debts policy.

Overall, absolving the poor from payment of debts exerts seriously negative effects rather than impressively social economic progress. That is why developed countries should not give free loans to low-income nations.