The Future Global Peace: External Debts

Imagine a family with so many debts that they are not able to afford their basic needs. Also, suppose that part of what caused the debt was the purchase of books (which we will call a type “A” investment). Another investment was unnecessary equipment, bought, additionally, with some ignorance of its use (Type “B”). A third type of expenses (a type “C”), was related to vices.

This hypothetical situation may result in making the head of the family less capable to solve the problems and if he/she were to find someone who would give him/her an additional credit, he/she will use it.

This is the situation of many poor countries, but there are a few dramatic differences.

First of all, the kids we are talking about are not only millions, but without sufficient food, lack of health, and education. Someone has taken away their right to have a healthy life, and in some cases, even their right to live.

Another difference is that the governments of some underdeveloped countries are plagued with corruption. The effectiveness of corruption to steal and deceive people grows with the deterioration of the society.

Let’s now talk about the merchants that gave the credit to the man in our former example.

I have no doubt that a debt due to the purchase of type “A” goods must obey the rules of modern economy. Somebody has to pay to the librarian who initially sold the books; nobody wants to see him broke.

The debt related to type “B” goods, has a big problem. Laws may not prevent an abusing salesman from taking away the money from innocents’ pockets, only moral and religious discipline will avoid these malicious practices. But it’s clear for me, that if a business causes major damages, part of the responsibility is on the (credit) seller.

Finally the debt caused by type “C” goods, may be determined and quantified. The credit given for this type of purchases are not only immoral, but they are also illegal. Returning to the case of our concert of nations, we need to identify how much has gone to corrupted groups. Keep in mind that these kind of businesses are only possible with the complicity of both sides of the negotiators.

I think that international monetary entities are conditioning new debt refinancing. They force governments to make some necessary reforms; something that I applaud.

However, for the amount of accumulated debts, we need to classify them and find a way to recover the founds where they have gone. We have enough technological resources to do that. If we do so, we will discover that those millions of children that try to survive with little food, do not deserve to pay those debts.