Third world debt Vs Need for Technology :: Business and Management Studies

Third world debt Vs Need for TechnologyBackground and underlying concepts some(prenominal) develop countries have very large debts accumulated since the80s, and the quantity of money that they owe is quickly increasingdramatically. Trying to pay mop up these debts has become a seriousproblem for these countries, as they now owe money to commercial banksand also to organisations like the World Bank, and the Internationalpecuniary Fund, and to First World governments.During the last fifteen years around $1.3 gazillion was paid by thethird world countries to the developed countries in the plaster bandage of loanrepayments and interest on the loans. Every month around $12 billionis passed on from economically poor counties to the developedcountries in debt servicing. In sub-Saharan Africa, some countriesspend almost half their national budget on financing debt owed to therich western nations. This is the reason why these counties cannot rate in technology to develop their own countr y.The technology market is extensive industry that is always changing withtime. It is estimated that around 5.5 billion people do not haveaccess to technology such as the Internet, as computer argon toexpensive for these people. While over half of the UK households beonline, only 0.1% of homes in Bangladesh and India have access to theInternet. As this was a colossal concern a company based in India producea low toll handheld computer named Simputer. The device would onlycost around $240. The device would enable people or a closure toaccess the Internet and perform transaction and any other cultivationthat would be accessible via the Internet. Villages tended to by theseas it help educate the kids deep down these villages.Current SituationFigures published by the World Bank shows that the substance external debtper country is as follows.* Indonesia $132.2bn* India $104.4bn* Thailand $59.2bn* Malaysia $48.6bn* Sri Lanka $9.6bn* Somalia $2.7bn* Seychelles $560m* Maldives $270m The annual repayment cost for theses countries are as follows* Indonesia $13.7bn* India $13bn* Thailand $17.9bn* Sri Lanka $653m* Maldives $20.8mIn Africa the debt crises is so bad that around 315 million Africans get it on on less than $1 a day.The G7 minister are think to cancel up to 100% of the debt owed,this would mean that around 37 developing counties would benefit fromthis proposed scheme. According to the JDC (Jubilee Debt Campaign),only $36.3bn, or less than 10%, of debt has been scratch to date.Pakistan has paid off most of its debt that was owed to US. This wasdone the incentives given by the American government and its allies in