Prof M Kang
The World Bank gives out a lot of loans to third world countries, in order for them to invest in infrastructure, education, or try to alleviate poverty and strengthen human resource development. Every year the World Bank lends huge amount of money to African countries, and all those loans have trapped the African nations into debt. The African nations have been indebted for sixty years and even more, which means that they have been led to compromise their own people for sixty years and more. Whether or not if the African countries pay the debt they will need to borrow more money from the World Bank and be again in an infinite circle. My question is that why the African countries should not pay back the debt?
My argument is that the African nations should not pay back the debt, because those who are lending money to Africa they are the one who colonized it before, therefore they are the one who used to control the African economic system during the colonization. Debt is a new way of controlling Africa by foreign rules. The World Bank system of lending money to the African nations is creating a financial slavery, because those African countries are forced to grow and develop through foreign rules. Many scholars have discussed whether or not the Africans countries should pay back the debt. And I am supporting the ones that are against the payment of the debt.
In order to defend my point of view I will divide my paper into three parts. First of all I will talk in details about the African debt, how the African countries are being trapped into a new form of colonialism. The second part of my paper will explore the existing view while providing my own argument I will support a side in the existing views, and argue against the other one. The third part of my paper will show how the African nations can be economically free if the debt is not paid, and how they can achieve development without taking long-term loans from the World Bank.
OK. I can get your point. Your argument is very provocative. A critical remaining task to convince your argument.
Try to find the overall debt level of African countries. After providing an overview on the debt level of African countries and, if possible, discuss a bit more in detail on a country case, for instance, Senegal or others which may convince your argument better.
If African countries do not pay back their existing debt, probably, it may be very difficult to get more loans from the World Bank and secure foreign loans in international markets. If this is the case, how can African countries mobilize necessary capital for economic development? One primary source will be domestic savings. But I wonder whether domestic savings can be properly mobilized in the near future. Another source can be foreign direct investment (not loans or borrowings). Indeed, these days, China has increased its engagement with African countries, especially in energy-related sectors. Check out the inward FDI to African countries in general, and a specific country case in particular.