Burden Of Debt

Question 1

International debt

Answer 1

Global debt is increasing

Question 2

Consequences of debt

Answer 2

Austerity
Wealth flowing upward

Question 3

Addressing debt of developing countries

Answer 3

Human debt relief
Creating principles to follow

Question 4

Three ways debt that can be dealt with

Answer 4

Debt forgiveness
Debt restructuring
Default (partial collection)

Question 5

What does over-borrowing or over-lending have in common

Answer 5

Every loan involves a lender and a borrower

Question 6

What encourages over-borrowing and over-lending

Answer 6

Political economy of over lending
Lenders’ encourage this
Lenders’ create incentives

Question 7

Debt of developing countries

Answer 7

Even when debt is reduced, the debt will start to increase soon there after

Question 8

How to address debt in developing countries

Answer 8

Humane debt relief
Creating principles to follow

Question 9

What is Humane debt relief

Answer 9

Counter-cyclical lending
Risk reduction
Conservative borrowing
International bankruptcy laws

Question 10

Principles to follow

Answer 10

Sufficient debt forgiveness
Recognition that foreign creditors are not the only claimants
Timely restructuring that is debtor friendly
An international bankruptcy structure