Thursday, November 30, 2006

On the origins of debts!
It is a topic nobody likes to talk about. It is a topic that even though attracts a lot of attention, once it is being discussed. It is a topic opposing two fundamental different ways on how the North-South relations should look like. It is the topic of economic theories, numbers and disputes. It is the topic about the increasing debts and the difficult (for instance not to say impossible) duty of reimboursement of debts in developping countries.

For my history class on Finance and international relations I am undertaking a reseach on debts of Africa from the point of view of the World Bank and the International Monetary Fund! Before reading some of the books I was not aware of the extent of this problematic, on the way of arguing, the way of seeing numbers and theories in such different ways.

At the moment I am just reading and reading, trying to understand all (or at least some of) the factors and relevant mecanism. The topic is complex and I do not have the knowledge, the time and the capacities in understanding the entire complex international monetary system. Even though, according to my really basic knowledge of economics, my effort to understand both sides, I can already say, that sometimes I am getting so upset with the IMF and the World Bank, and the more I read the more I do not understand why they continue injecting money, forcing growth that has not come in the last 40 years in the countries mostly needed.

Well, maybe a part of the answer I will find in the book (I just started two days ago) I am reading before I fall asleep each night: Die Bekenntnisse eines Economic Hit Man.

1 comment:

Anonymous said...

Nice view! Is that out from your window?
The monetary system is complex, but not impossible to learn. I think it is quite eassier than riding across a country on a motorcycle or getting up a huge mountain. I even think that the WB and IMF are taking diferent scopes of the development problem is related with the debt issue, further than the flexibility of the policies. It makes it eassier to understand, if you see bouth organisms, and the debt they manage, by an atempt to spread and mantain an ideological structure into the policy of the countries. i.e. the black sheep in L. America is Argentina, whom disregarded IMF, with success over the results. There are many interesting issues around the debt of countries from the south. I better write an e-mail.
un abrazo, beto