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

Third world debt Vs Need for TechnologyBackground and underlying conceptsMany developing countries have very 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 seriousproblem 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 g overnments.During the last fifteen years or so $1.3 trillion was paid 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 budget on financing debt owed to the bass western nations. This is the reason why these counties cannotinvest in technology to develop their own country.The technology market is va st 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 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 company based in India reveala low cost handheld computer named Simputer. The device would onlycost around $240. The device would enable people or a liquidation toaccess the Internet and perform transaction and any other informationthat would be accessible via the Internet. Villages tended to by theseas it help educate the kids within these villages. sure SituationFigures published by the World Bank shows that the total external debtper country is as follows.* In makesia $132.2bn* India $104.4bn* Thailand $59.2bn* Malaysia $48.6bn* Sri Lanka $9.6bn* Somalia $2.7bn* Seychelles $560m* Maldives $270mThe 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 Africanslive on less than $1 a day.The G7 minister are planning to cancel up to ascorbic acid% 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