To Forgive or Not to Forgive Essay -- essays papers

To Forgive or Not to ForgiveDebt is a substantial paradox facing many countries in the world today. Some of the more economically stable countries are able to pay off their debt through strategic cypher planning. However, there are many countries that constantly struggle to solve their debt problems. In response of this issue, the IMF and the World confide have designed a framework to will special assistance for heavily indebted poor countries that pursue IMF and World Bank supported adjustment and reform programs. This framework has been called the Heavily Indebted curt Countries Initiative it is also known as the HIPC Initiative. In this paper, I will explain the advantages and disadvantages of the HIPC Initiative. My main objective will be to explain why I think it is an appropriate obligation for the IMF and World Bank to make. To do this, I will describe the initiatives of the World Bank and IMF along with the reasons for its creation, its successes and challenges, econom ic advantages and disadvantages of the debt relief program, and at long last some biblical perspective on debt forgiveness.First, it is important to look at what the HIPC Initiative is. The HIPC Initiative is a comprehensive approach to debt reduction for poor countries that requires the liaison of all creditors. Its goal is to ensure that no poor country faces a debt burden it cannot manage. Central to the HIPC Initiative is each countrys continued feat toward macroeconomic adjustment and structural and social policy reforms. In addition, the initiative focuses on ensuring additional finance for social sector programs, primarily basic wellness and education. Following a comprehensive review of the HIPC Initiative, a number of modifications were approved in September 1999 to provide faster, deeper and broader debt relief and strengthen the links between debt relief, scantiness reduction and social policies.The Initiative is not a universal remedy. Even if all the outer debts of these countries were forgiven, most would still depend on significant levels of concessional external assistance their receipts of such assistance have been much larger than their debt-service payments for many years.So, why was the HIPC Initiative created? It has been well recognized that the external debt situation for a number of low-income countries, mostly in Africa, has become ex... ...tential to do a lot of good for the economy as a whole. I believe it will economic aid not only developing nations but the developed nations as well. It also has the potential to help reduce poverty in the world as Delechat describes. Also, on a Biblical perspective, I believe it clearly states that we are to forgive the debts of our neighbors. Therefore, this is why I think the HIPC Initiative is an appropriate obligation for the IMF and World Bank to have.BibliographyWorks CitedCheru, Fantu. (January, 2001). The Highly Indebted Poor Countries (HIPC) Initiative a human rights assessment of the Poverty Reduction Strategy Papers (PRSP). HIPC well intentioned but damage? (2001, October 15).Delechat, C. (2001). 100 Percent Debt Cancellation? A Response from the IMF and the World Bank. (2001, October 15).The Holy Bible New International Version. Exodus 22 25-27. Deuteronomy 151-11. Leviticus 25 1-43.(2000, October 12). Forgiving Their Debtors. circumvent Street Journal, p. A26.(2000, November 29). The Impact of Debt Reduction under the HIPC Initiative on External Debt Service and Social Expenditures. International Monetary Fund. (2001, October 15).