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Economic Development - Does Debt Relief promote development in poorer countries?

Level:
A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 10 Mar 2023

This topic revision video looks at the arguments for and against different forms of debt relief as a support for economic growth and development in poorer countries.

Debt Forgiveness: This involves the complete cancellation of a country's debt by its creditors. Typically, only granted after a natural disaster or if a country has taken significant steps to implement economic reforms.

Debt Restructuring: This involves the renegotiation of a country's debt terms with its creditors. This may involve extending the maturity of the debt, reducing the interest rate, or reducing the principal amount owed.

Debt Rescheduling: This involves changing the schedule of debt payments so that a country can meet its debt obligations without defaulting.

Debt Equity Swaps: This involves exchanging a country's debt for equity in local companies or infrastructure projects. This can help to reduce a country's debt burden and promote economic growth.

Economic Development - Does Debt Relief promote growth and development in poorer countries?

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