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

Third world debt Vs Need for TechnologyBackground and underlying conceptsMany developing countries have rattling large debts accumulated since the80s, and the amount of money that they owe is quickly increasingdramatically. Trying to pay off these debts has become a serious problem for these countries, as they now owe money to commercial banksand also to organisations like the World Bank, and the InternationalMonetary Fund, and to First World governments.During the last fifteen days approximately $1.3 trillion was gainful by thethird world countries to the developed countries in the form 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 cipher on financing debt owed to therich western nations. This is the reason why these counties cannotinvest in technology to develop their own country.The technol ogy market is vast effort that is always changing withtime. It is estimated that around 5.5 billion battalion do not haveaccess to technology such as the Internet, as computer are toexpensive for these people. While over half of the UK households areonline, only 0.1% of homes in Bangladesh and India have access to theInternet. As this was a huge concern a smart set based in India producea low apostrophize handheld computer named Simputer. The device would onlycost around $240. The device would enable people or a village toaccess the Internet and perform transaction and any other informationthat would be accessible via the Internet. Villages tended to by theseas it aid educate the kids within these villages.Current SituationFigures published by the World Bank shows that the total 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 $270mThe annual repayment c ost 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 Africanslive on less than $1 a day.The G7 minister are preparation 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 cancelled 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