Question

How do debt repayment and structural adjustment terms hamper economic development? A. Only wealthy nations need to repay their debts, so it slows their progress. B. This is no longer a problem because debt repayment was completely erased after World War II. C. Both measures rob a developing nation of money it could use to invest in social welfare improvements. D. They always penalize highly developed nations rather than underdeveloped ones.

Answer 1

A. Only wealthy nations need to repay their debts, so it slows their progress.  This will be unfair if only the wealthy nations have to pay the debt because other developing nations will always try to portray that they are striving hard to reach up to that level.


B. This is no longer a problem because debt repayment was completely erased after World War II. If there was no problem then poverty would not exist in the world. Every corner of the world would be peace loving.


C. Both measures rob a developing nation of money it could use to invest in social welfare improvements. The sources provided to lend money for the developing nations help them generate resources to create more opportunities to get better and create employment for people in the country.

D. They always penalize highly developed nations rather than underdeveloped ones.Rules should be equal to everyone. Yes, of course, the rich nations do not find it hard to pay the debt compared to the developing ones.

Answer 2

The correct answer for your question is option (C)-Both measures rob a developing nations of money it could use to invest in social welfare measurement.

Dept repayment and structural adjustment can pull out the money of a developing nations which can be used to invest on many welfare measures. The external dept are one of the significant source of a developing country to invest on developmental programs.