As you are all aware the earthquake in Haiti has brought devastation to the tiny island. I came across an article in The New York Times that discussed that France, and other wealthy nations believe that they should relieve Haiti of all its debt, which adds up to a total of $214 million. To read the complete details go to:
http://www.nytimes.com/2010/01/20/world/americas/20debt.html?ref=world
Now, I think that given the circumstances this is a wonderful thing to do for the poverty stricken country. However, I can't help but wonder what would happen if this became a habit. I'm not well versed in how all this financial stuff works, but it I feel as though this could set a negative precedent for the future.
Can anyone explain possible outcomes or just give their opinion on the topic?
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This is very interesting. I am curiious to see if these countries hod true to this. Its true this is a very kind and generous thing to do to a poverty and disaster stricken country such as haiti. It may go a long way towards peace in the world, but i highly doubt that this will ever become a habit especially for much larger countries.
ReplyDeleteMany people think that The IMF (international Monetary Fund) should cancel all third world debt. While this would help third world countries in the short run to balance their budjets, it would not end their debt problem. Many of these countries base a good percent of their budjets on aid money. If the IMF or World Bank canceled a countries debt, that country would be unable to borrow money in the future. So while canceling debt would be a good thing to do, the country must first have economic stability to support itself with out aid money.
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This is a good question. I dont think that this will become a regular practise though. It is very good that these rich nations are considering cancelling the debt that Haiti owes to them. If they didn't, it would take a lot of years for Haiti to pay them back anyways. If they were unable to pay when their nation was more stable, how could they be expected to pay now that they are almost completely dilapidated. All this relief effort is good but I also want to see relief plunging into Haiti that would have a long-term effect and change the overall direction of the country. I would like to see investments in the most iportant industry of a country: education. A large number of the people living in Haiti do not have a standard education and this adds to their poverty. If we do all these reconstructing and building up of the physical structures without also investing in the human resources of Haiti, it will not be properly able to stand on its own and face they world on equal terms as most other nations are able to.
ReplyDeleteI think that cancelling Haiti's debt in this case would be a fantastic move. While I understand that it may be unwise to make the forgiveness of third world debt a habit, I think that Haiti should be treated as an exception. The earthquake was a natural disaster that devastated an already fairly destitute country. The cost to rebuild on top of the preexisting debt could be crippling. Canceling the prior debt seems like a way to help Haiti ty to get back on its feet. (A)
ReplyDeleteWell, not to sound cold-hearted or anything, but I believe this is a bad idea, especially for countries, such as the United States, who themselves are already in great debt. I understand that Haiti needs all the help it can get, and therefore generous donations should be made by wealthy nations such as France. But when it comes to the U.S. and other countries that are struggling right now, they should send the relief money that is within their budget. With this said, its not like the U.S. wouldn't be doing its part, they would just be giving the best help they could during this time of great distress. I mean, doing your best is all anyone can ask for, right? Moving on, if France and other wealthy nations feel obligated to make this happen, then they themselves should step up and make it happen. If they are doing so well, then they should have the extra money that can make this possible, unlike struggling countries. So in my opinion, the U.S. and other struggling countries should give what their budgets tell them they can give, and France and the other wealthy nations should take on the brunt of what they cannot provide and beyond, because they can. (A)
ReplyDeleteI agree that the case for Haiti is just a very kind exception since this earthquake is so devastating. I think it is unlikely to become a haibt or it will result in unbalance and injustice. No matter how long it takes a country to pay back the debt, there's no reason to cancel it.
ReplyDeleteHere's my question: why are these nations concerned enough with Haiti's debt to make the New York Times? There are people dying in Haiti TODAY, and the country's debt could be dealt with in the future because, unlike human lives, the debt isn't going anywhere.
ReplyDeleteI agree with Rich, our focus for now should be on the humanitarian aid that is needed for the people of Haiti. However, I do believe that Haiti needs all of the help that it can get both in necessity and financially. Haiti is one of the poorest nations in the world, give them a break already. Yes, the U.S is already in enough debt but there is no comparison between the the t. It will probably hinder the economic growth of the U.S. but I think that it is the least we can do to help rebuild the nation of Haiti.
ReplyDeleteBecause of the earthquake, Haiti's case became a very kind exception. But I just wondering, is this the only helping way of wealthy countries to do is relief the debt? if the wealthy countries relief all the Haiti's Debt, will they think about the future about Haiti, Haiti need money to develop, this time the earthquake brought devastation, it is very kind to relief all the debt, but will they contiune to helping Haiti like that all the time? A
ReplyDeletei believe that the countries should relieve haiti from the debt because 214 million is not a lot of money for countries to chip in and pay. However, i believe it should wait untill all of the problems from the earthquake today are dealt with. Right now they have more problems than debt which need to be solved immediately.
ReplyDeleteForgiving Haiti’s debt of $214 million would be really nice deed but would require the support of all the countries that are able to financial help. The United States is in huge debt right now and if the country is willing to help out, “where would that money be taken from?” most likely taxpayers money or healthcare benefits. I bet everyone would like to help but there are people who really need that extra money for their daily life.
ReplyDeleteDulce, people in Haiti don't need money for their everyday life because I imagine that most of the places where people would use money are in ruin because of the earthquake. Haitians need food, clean water, clothing, and medical attention. Deal with the debt later; it's $214 million, if the USA wants to take less than a dollar per person from American citizens I am in full support of it, but right now--in this moment--there are more important things.
ReplyDeleteThough in theory canceling all of Haiti's debt would be a great movie, practically it may be challenging. All major countries of the world will have to support this in order to keep the world economy dipping more than it already is.
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