Cancelling World Debt & Alleviating Third World Debt 

Living in the more prosperous countries of the world, one might not realize that poverty in the Third World is a very serious problem. Economists, sociologists, public policy makers and political scientists have tried many strategies to alleviate the debt condition of third world countries.

But still, even in the year 2008 there is not much success.   

Poorer the country, the greater is their debt to international financial institutions. A long existing, worldwide debate is whether such foreign financial institutions should give debt relief to these impoverished countries to bring about some hope of coming out of an increasing debt situation.

The question is: is it moral to make so much money from increasing interest rates charged on loans taken by countries that are in desperate economical need, who have no money to feed their poor. Should these foreign creditors not offer compassion by either bringing down the interest rates or canceling the debt completely?

Jubilee 2000 is one among many international coalition movements that called for canceling the third world debt by the year 2000. The word “jubilee” is taken from the Bible. Old Testament biblical laws call for a year of Jubilee, which is every 50 years. 

During this year, all debts are cancelled and land lost because of debt is returned to the rightful owners. Jubilee 2000 aimed at canceling the $90 billion debt owed by Third World countries. By canceling the debt, third world countries can use those saved resources to concentrate on building their economy.   

Many countries have taken active steps in providing debt relief for third world countries.  Organization for Economic Co-operation and Development (OECD), comprising of developed nations of the world, provide development assistance to underdeveloped countries.

Many developed countries like the USA, Britain and Canada, to name a few, have government budgets to alleviate the debt situation of the third world in a systematic way. 

The problem does not lie in just eliminating the debts that these countries have but in upgrading the society in terms of education, health, creating jobs within the community so that they are able to make enough money to self-sustain their economy.

Unfortunately, many of these countries are susceptible to natural disasters each year—cyclones, tsunamis, hurricanes, floods. This is where many social and charitable organizations play a crucial role.   

Most rational people would consider the situation facing the Third World countries unfair and completely unnecessary. Statistics show that developed countries receive 80% of the world income. The top ten richest billionaires own a combined wealth of $133 billion.

That is more than 1.5 times the total national income of the least developed countries.  Debt relief to 20 of the poorest countries would cost 5.5 billion. The cost of eradicating poverty is just 1% of global income.  

When we think of the efforts and research put into eradicating the debt of Third World countries, and when you look at the wealth of more developed countries, one begins to see that it is not an undefeatable problem.

The answer is in giving.  A little giving from more individuals would make a difference in providing a way for a more permanent solution and a decent living for the rest of the world.