Economies of Developing Countries

By The Pakistani Spectator • May 10th, 2007 • Category: Uncategorized • (95 views) • No Responses

Developing countries have mere resources for their development planning and execution. Every budget announcement has a percentage of deficit. Various measures are announced to cut down the deficit. This is an advance announcement and general public not knowing the fact that what happened at the end of each year. To cover up the deficit governments have to see towards World Bank (WB) and International Monitory Fund (IMF). These two institution on short term and long term borrowings charge huge interests on normal plans and if rescheduling involved this may increase. Loans are not paid 100%, it is normally divided into major portion of money and a certain percentage of goods (like cosmetics, home products etc). Then major component of every budget is consumed on re-payment of loans. So developing countries can merely become in the list of developed countries. Many a times governments have to take loan to pay scheduled installments, or governments are advised to levy many taxes and duties to recover the loan. This is how the business of WB and IMF runs.

There is also a part played by developed countries to instigate issues so that they become critical to create emergencies resulting in sales of arms of their manufacturers, thus creating another financial burden on the developing economies.

If a country learn how to survive within its resources then there is a chance to grow and get some position in the list of developed countries.