Column / The Radius or Economic Intelligence - The Factory of the increased indebtedness of poor countries

The additional cultural clauses in the granting of credits to developing countries, a brake on pluralist access for the poorest social strata: a source of indebtedness and chronic underdevelopment in poor countries.

The leaders of the underdeveloped countries in search of development or, those who experience difficulties in relation to the recovery of their economy, find in the international financial institutions the ideal salvation for the well-being of the citizens.

A way used but not always consecrated. Because there is a saying that « one only lends to the rich ». However, many African countries, even emerging ones, are struggling to balance their economy (macroeconomic assessment).

Originally, the inequitable distribution of the national income; public expenditure essentially linked to the consumption of imported or luxury goods, absorbing almost all the financial capacities of the country, necessary for the construction of road infrastructures, real estate, etcconducive to a smart economy.Leaders, especially African ones, generally proceed or on a regular cycle, to the recovery or readjustment of development programs with international financial institutions.

adjustment plans rarely exceeding two to three years; at the origin of the growth of the States’ public debt and few carriers of the desired concrete solutions.

Worse, not only do these financial contributions favor only short-term operations, in particular those relating to the consumption of imported products produced by the Western powers, but they also penalize the levers of development that are the qualitative education of theyouth, intellectual elites and growth-generating investment.These contributions at the origin of public debt, are accompanied by a disproportionate service; and are accompanied by drastic conditions, often unsuited to the primary needs that underpin the sustainable development so desired by indigenous populations.

We have identified three main causes.

These are among others :

1. – Restrictions on granting scholarships to learners;
2. -Restrictions on the workforce including executives employed in the public service;
3. – The all-out fight against the informal sector, the financial niche of the least trained, less educated social strata as well as the technically unemployed or those looking for their first job.

The restriction of scholarships to learners

For poor (but also developed) countries, their allocation by the state of school resources (scholarships) constitutes significant financial aid. Because it participates fully in consumption and in the training of the elites that countries strongly need to develop.

the restriction of this financial source by the International Monetary Fund and the applicants for « aid » constitutes a brake.

It is a measure that must be regulated because it is very restrictive, with serious side effects.

The reduction of staff in the public service in order to access the requested financial loan

The public service is a safe employer. It generates income and allows any beneficiary to feed their family, which is very often large in Africa. to drastically reduce the number of staff there means depriving many families of the means to meet their essential survival needs.

It is necessary to regulate the procedure as well as its impact for the beneficiaries or claimants.

The frantic struggle against the informal sector

The informal sector is an almost inexhaustible financial and employment niche in Africa.it allows the...>>http://peupleinfos.com/6581-2/