Over the course of the next few months, i will be WRITING blogs about present global issues.
Throughout the world, many countries struggle in poverty and crisis. In these rough times, they often turn to the IMF for economic support. The IMF gives loans to these poorer countries and supports them with developing and improving trading, medicine, technology, and debt relief. The idea of this is to give poor countries in debt a chance to succeed and develop into powerful countries. This is a great idea, but it takes a lot of money to do, and you don't just find billions bucks anywhere. When the IMF decides to loan to a country, they turn to large, rich countries for capitol. Of course they have to pay them back so they try to make sure that the countries develop and succeed, so they can make back that money. During this whole process, of course, the IMF has been intending on their own benefit, as well. They include interest in their loans that can put a country in debt even further. They also regulate and direct their spending and economic decisions. This can sometimes go against the countries interest, and they later find out it was in the IMF or investing country's greatest interest. One other problem that arose in this system was failure of richer countries to participate. Countries have not been meeting their promises on expected lending to poorer countries. There is an $180 billion gap between the promised debt relief and provided relief to struggling countries. There are some things that other successful countries could do to help without having to lend money. Countries could remove subsidies on exports to poorer countries that would over compete with their local businesses. They could remove trade between themselves. Additionally, they could develop trade agreements that could possibly mutually benefit each other, but most importantly, support the poorer countries businesses.
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