DEBT CRISIS AND THE THIRD WORLD: A CONSCIENTIOUS ANALYSIS

Abstract

Prosaically, third world countries perambulate and meander in unpalatable, inglorious debt. The debt being emphasized here is the one that is caused by internal and external, constant borrowing by governments of various third world states. Aside from being indebted to internal and external financial institutions, majority of the states of the third world operate in the realm of what is called “debt crisisâ€, which is a situation whereby the government of a state lacks the ability to pay back what it has borrowed. However it’s not that these states do not have the wherewithal to pay off what they have borrowed, but they find it ultra-difficult to do so because of certain factors. The factors, we could say, make them helpless slaves to debt. Howbeit, this article tries to look at debt crisis in the third world and bring to surface some of the internal and external factors of saliency responsible for it. At the same time, the article provides few panaceas to the problem.