The phrase, the rich get richer while the poor get poorer, is so true when applied to Western financial institutions vs many of the peoples of Africa. Is it right that African nations should still be burdened with debts considering they have, in many cases, paid back far more than was originally borrowed – and they’re still in debt?
Western financial institutions have never been keen on lending to African nations because they know that these countries will not be able to repay their debts. However, it is evident that many of the people in Africa are willing and capable of paying back what was borrowed from them – yet Western banks still refuse loans due to lack of interest or concern for this region. Is there really no hope?
While lenders of course want to recoup their investments, some of the loans to African nations resemble mafia loan-sharking arrangements rather than properly regulated, and fair, financial agreements. I as well as millions more believe that it is time to set Africa free of the bondage of servicing debts that their peoples have to pay even though they were not the beneficiaries of the original loans.
The West has already plundered many African resources. We’re also hitting the continent with unjust demands which diverts limited funds away from helping the people of Africa to the coffers of Western banks.
As far as lessons we can learn, what are the take aways? It’s fair to say that getting into debt whether on the national or personal level is something to consider carefully. There are times, e.g. when getting a mortgage, where if we want to buy an apartment, that is likely the only option. Then again, are all our credit card purchases strictly necessary? If you want to buy yourself the best juicer or a new pair of shoes, perhaps saving up before would be a better option.
In the end, it’s up to ourselves to manage our money to the best of our abilities. When things go wrong, there are debt management options for individuals. Shouldn’t there be the same for sovereign nations?