International Debt Essay Example for Free

International Debt Essay a) What is meant by the problem of international debt? (6 marks) b) Discuss the main policies that a country can use to reduce the problem of international indebtedness (i) in the short run and (ii) in the long run (7 marks + 7 marks) a) The Balance of Payment account shows all monetary transactions between our country and the rest of the world over a period of time. It is made up of the current account (trade in goods and services), capital account (Investments, Saving, Borrowing) and the balancing item, which represents the total of all errors and omissions from the above values, which are estimates. When a country spends more than it earns i.e. it imports more than it exports (Current account), or it saves and invests more abroad than other countries save and invest in that country (Capital account), it is said that the country has a current account deficit and a capital account deficit respectively. The country facing a BOP deficit must take actions to rectify it. It usually borrows money from other countries or international financial institutions. The accumulation of debt from loaning from abroad because of a recurring BOP deficit is known as international debt. International debt developed into a problem for many developing countries, Third world countries, which are the poorer countries of the world. These are countries in Africa, Asia and South America and they represent the largest group of countries in the world both in area and population, but the lowest in income and wealth. The cause of the international debt in LDCs is their chronic balance of payments problems. They owe huge sums of money and they need to pay large sums in interest. As a result, in the world as a whole, there is a net transfer of funds from the poor countries to the rich. b) i) The Balance of Payment account shows all monetary transactions between our country and the rest of the world over a period of time. When a country spends more than it earns i.e. it imports more than it exports (Current account), or it saves and invests more abroad than other countries save and invest in that country (Capital account), it is said that the country has a current account deficit and a capital account deficit respectively. The government of a country may take actions to rectify this deficit. In the short run a country can borrow from financial institutions and other countries to correct its Balance of Payments deficit. An alternative would be to use its reserves (Gold and foreign currencies) to correct its deficit. These are temporary ways to correct the deficit and do not fight the source of the problem, they do not stop it from occurring the following year. ii) In the long run the country can take actions that would eliminate the problem that cause the BOP deficit. A country can use many different policies to correct and reverse the deficit. If the government increases taxes and, or, decreases public expenditure, there will be less money circulating in the economy and the aggregate demand would decrease. People will have less money to spend on imports, imports would decrease and the BOP deficit will be corrects. Nevertheless, a decrease in aggregate demand also affects the domestic industries. Less of their products would be demanded, they will produce less and as a result they will cause unemployment. The government can also decide to increase interest rates. This will attract inflows of Hot money (Short term investments of large sums of money that investors move from country to country in search for the best interest rates) into the country correcting the BOP deficit. The downside of this will be that the high interest rates will make borrowing more expensive and as a result consumers will borrow less for consumption and firms less for investment. Protectionism policies may be applied. These are policies to prevent trade between countries and decrease imports so that the BOP deficit is corrected. Unfortunately some protectionist policies such as import tariffs or imports quotas are usually not in the disposal of countries members of custom unions such as the European Union. A devaluation in the countrys currency will lower its value and make the countrys exports cheaper for foreign countries to buy and at the same time the imports into that country will be more expensive. As a result exports will increase and impost will decrease, thus the BOP deficit will be corrected. This is not possible for members of the ERM of the EU. In the long run a country may decide to improve the competitiveness of its Industries through supply side measures such as regional policies. Nevertheless, these policies are very time consuming and will take a lot of time to work. The country can also demand through the IMF a debt rescheduling and or new loans. This involves lowering the interest rates on existing loans, lengthening the repayment period and, or, canceling part of the debts. The IMF can provide additional loans or arrange so that financial institutions do it, with a guarantee from the IMF. In order for the IMF to do these it sets certain conditions and structural adjustment programmes that the country must follow. These conditions and programmes involve most of the policies discussed above. A further, policy would be to encourage commercial banks to finance private sector development. If governments spend too much they have a budget deficit and their income is less than their expenditure. This deficit is financed by borrowing large amounts from commercial banks and as a result not many funds are left to lend to the private sector. The IMF wants commercial banks to lend more money to the private sector, which is expected to make better use of the funds for development projects.

Kettering :: essays research papers

Kettering Tape   Ã‚  Ã‚  Ã‚  Ã‚  In listening to Kettering’s lecture there are five main points that I was able to pick out: 1.  Ã‚  Ã‚  Ã‚  Ã‚  Point of view of failure – The example he gave was that a person going to grades K – 12 take several tests and if they fail just one they are out, however inventors can fail 999 times but if they succeed just once then they are a success not a failure. 2.  Ã‚  Ã‚  Ã‚  Ã‚  There are two kinds of education – Kettering claims that one kind of education is being specialized in one particular subject, and the second form of education is knowing a little bit on a wide variety of subjects. This second form is what Kettering claims to be how inventors were educated. 3.  Ã‚  Ã‚  Ã‚  Ã‚   I.Q. Tests – Kettering claimed that I.Q. tests have nothing to do with the person taking the test, but rather, what the person administering the test wants them to be. 4.  Ã‚  Ã‚  Ã‚  Ã‚  Teach kids the future – We are going to spend our time in the future not in the past, so why do we not study the future and study what is going to happen rather than what has already happened that we cannot change. We should educate people for the next 15 – 20 years. 5.  Ã‚  Ã‚  Ã‚  Ã‚  The â€Å"problem† – Kettering states â€Å"The ‘Problem’ has to be the ‘boss’.† From what I get of this he means that you have to come up with a resolution from the problem. The problem has to be the main focus for a reasonable solution to be approached. What do I think of what Kettering said? Where is he right? Where is he wrong? Why?   Ã‚  Ã‚  Ã‚  Ã‚  I cannot say that I agree totally with what he says, but then again I cannot say I totally disagree. He brings up several points that are infinitely arguable. I do agree with the two kinds of education that are stated in number two above. I don’t think there is one best way to teach children wether it be specialized in one subject, or in a wide variety of subjects as each child learns differently and at their own pace.   Ã‚  Ã‚  Ã‚  Ã‚  I don’t think that we can teach children or adults the future.

Body Fat and Eating Disorders Essay

Body composition is composed of lean tissues and fats in the body. Lean tissue includes muscle, bone, and organs, while fats include essential, non-essential, and storage. Obesity has environmental and lifestyle effects. Some effects include high availability of fast food and high fat content food. Advertisements for different types of foods are seen all over the television, and a lot of the ads are for unhealthy foods that are aimed at children. Many families are limited to buying the cheaper foods that are found in stores. Health foods are often more costly and low income families simply cannot afford them. Inexpensive foods are often served in portions that are well above the recommendations for servings. Families keep themselves so busy in this day and time, and this leads to buying foods that are convenient to make. Convenience foods can often be high in fat and calories, making them unhealthy choices. Anorexia nervosa is an eating disorder that causes a fear of gaining weight. A person may feel fat even though he or she is extremely thin. Some of the health problems associated with anorexia are changes in brain chemistry, brittle hair and nails, weak muscles, bone loss, and fractures. Anorexia can also cause kidney failure and growth problems. Bulimia nervosa is when large amounts of food are uncontrollably eaten and then purged. A person with bulimia may use methods like abuse of diuretics and laxatives to get rid of the food that is eaten. Physical complications include irritation of esophagus, stomach, and throat from excessive vomiting. The teeth can become yellowed and damaged from the acid in vomit. Bulimia also causes lung irritation due to choking during vomiting. The choking allows food to enter the lungs. The loss of body fluids causes low potassium and sodium levels. Muscle spasms and weakness may also be experienced. Some of the health problems associated with it is low blood pressure, slow heart rate, bone loss, heart failure, or kidney failure. Bulimia nervosa is another eating disorder that can cause a lot of problems. Bulimia is actually a combination of anorexia and binging. Bulimia nervosa, binge-eating disorder and anorexia nervosa can all be serious, life threatening eating disorders. Depression or stress can cause an individual to eat too much which causes an excess weight gain and if left untreated, can lead to serious health problems. Eating too little can cause an individual to be lacking necessary nutrients needed for the body to function properly. Binge eating leads to a loss of control over the binging and purging associated with this disease. Individuals afflicted with these eating disorders typically eat foods that are high in sugar and salt content. The foods these individuals choose are low in healthier nutrients. For this reason, these individuals are at risk for type 2 diabetes which is very serious. High blood pressure, high cholesterol and gallbladder disease are other health risks associated with bulimia nervosa, binge-eating disorder and anorexia nervosa.

A Tale of Two Cities by Charles Dickens - 1153 Words

The great Chinese philosopher, Confucius, once stated, â€Å"Before you embark on a journey of revenge, dig two graves.† In the French Revolution, there was major tension between the peasants of France and the affluent monarchy, which oppressed the peasants to the point of starvation. Forced to fight for their lives, the peasants revolted, and became the leaders of France. This change is seen with characters with Madame Defarge and Sydney Carton as they adapt to these changes in their society. The concept of foolishness happened to the peasants in Paris because the aristocrats did not believe that the peasants were worth their respect. This can be seen when Marquis St. Evrà ©monde is not anxious when he kills the son of Gaspard he believes that his gift of one gold coin will suffice and he will forgive him. This was not the case and this is what led to his demise. This was additionally the idea that was seen when Madame Defarge was the only one who was willing to kill Lucie and her daughter. Despite the fact they are the family of Dr. Manette, a friend of the revolution, because they were related with the St. Evrà ©monde. This scene showed her real intentions. Moreover, the idea of good intentions are apparent when Carton was smart enough to realize that his opportunity to show Lucie he would do anything for her happiness. He knew that he would have to die, but that did not deter his thought process. Everyone has good intentions, but sometimes their intentions areShow MoreRelatedA Tale of Two Cities, by Charles Dickens1420 Words   |  6 Pageshistory – the best of times and the worst of times. The violence enacted by the citizens of French on their fellow countrymen set a gruesome scene in the cities and country sides of France. Charles Dickens uses a palate of storm, wine, and blood imagery in A Tale of Two Cities to paint exactly how tremendously brutal this period of time was. Dickens use of storm imagery throughout his novel illustrates to the reader the tremulous, fierce, and explosive time period in which the course of events takesRead MoreA Tale Of Two Cities By Charles Dickens1024 Words   |  5 PagesAt the beginning of A Tale of Two Cities, Charles Dickens writes, â€Å"every human creature is constituted to be that profound secret and mystery to every other (14).† Throughout the novel, Dickens incorporates the theme of secrets to connect characters and add mystery to the story. The three characters with the significant secrets are Charles Darnay, Alexandre Manette, and Madame Defarge. 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