Is Debt Relief Possible to Poor Countries Article

Is Debt relaxation Possible to Poor Countries - Article ExampleI testament present the article from Stanford University done by Marguerite Religioso that goes to prove in her article that debt relief is possible only for some poor nations. She cited that the outside(a) Monetary fund has been continuing its efforts to come up with an instrument that would help the poor countries who are hard indebted. Her theory of Is debt relief a viable solution to worldwide poverty or a waste matter of time and money has pros and cons which she cited in the article. To evaluate the rationality of arguments, the author cited the moot done by Stanford have students total heat and Arslanalp who used the stock market as a reliable source of the economical indicator. The portentous result of the study proved that the stock market of the countries that obtained debt relief from the Brady plan (named after the U. S. Government Treasurer) showed 60% appreciation in 1989 to 1995 in real dollar ter ms even before debt relief was formally accepted. This is the period that debt relief is being studied for implementation in sixteen countries identified in Brady Plan. The study confirmed Henrys theory that the behavior of the stock market is an accurate predictor of economic movement/ Henry says, within a year of each countrys Brady agreement, foreign slap-up began flowing back in, and robust economic growth resumed that only goes to show debt relief is beneficial. Religiose referred to the study of Henry that explains a debt relief situation that is usually happening when a country suffers temporary difficulty of debt servicing. Its creditors put to be apprehensive and quickly collect their loans all at once. Since no one could be gainful at all, a complete economic standstill occurs. When some of the debts are relieved, new funds will come to stimulate growth and investment. While the basic objective of debt relief is supposed to be use to all poor countries, Regiglioso repor ted that debt relief doesnt work for the poorest of the poor.