Some people argue for and against rich nations forgiving debts for poor nations based on different reasons. However, despite the controversies surrounding this issue, it is imperative for rich nations to erase and forgive debts for poor nations to enable balanced development. This essay looks at the arguments why rich countries should forgive debts for poor nations.
Many of the poor nations around the world are crippled by the huge amount of debts they have to pay to rich nations (Arslanalp, Henry, and National Bureau of Economic Research, 2004); therefore, making development in this nations impossible. Besides, the impact on children and women is particularly atrocious due to less funding for basic services. These debts worsen the levels of poverty through compelling poor nations to give money to the wealthy. Thus, to realize development in these nations, debts must be forgiven.
All that debt forgiveness requires is an eraser. In fact, putting humanity aside, the funds are long gone and uncollectible. Therefore, rich nations must move from denial status into a new life as donors. In addition, Addison et al (2004) argues that rich countries need to forgive debts for poor nations because debt burdens often pile up for future generations to bear. This increases poverty as future efforts are padlocked to patterns of failures and ineffectiveness due to lack of sufficient resources. With the current state of poor nations today, which is characterized by high levels of inflation and stagnant economic development, it is good for these debts to be forgiven.
Rich nations have enough resources to handle different conditions such as economic downturn. Similarly, debts have continued to stagnant the economies of the poorer nations. Therefore, forgiving these debts will help to facilitate development and economic growth for poor nations.