The Economical Differences of Third Countries

Economical Differences of Third World Countries

An Informational Essay

April DeAnn Massey

Treasure Valley Community College

Abstract

The following essay explores the different areas in which the economies of third world countries are severely lacking. It will also explore how these lacking economies are a severe strain on these countries peoples. This essay will break down this topic into four major areas; debt, employment, education and health care. It will show how the lack of a proper economy has negatively affected these four areas. Evidence supporting these topics was found in the form of researched articles from a monitored national data base.

Keywords: Third world, economy, debt, employment, education, health care 

Introduction

The way a person lives their everyday life is unique but also quite normal to them. Each one of us has our own routine that is centered around the world we live in and the amenities that world either does or does not afford us. For instance I wake up every morning to an alarm pre-set on my cell phone. Would some in The Balkans wake up the same way? We often don’t think about how our lives differ from the person living next door let alone someone living in a different country. Economics play a big role in how our lives are lived. Much of the amenities we either do or do not have access to depends on whether or not the country we live in has the economic infrastructure to provide them. Amenities like affordable health care are second nature to citizens of first world countries but to the inhabitance of third world countries something like a hospital fully staffed with doctors who have access to the most up to date medical devices would seem quite foreign. When looking at the areas of debt, employment, education and health care the economical differences of third world countries becomes even more apparent.

Debt

The debt of third world countries has become astronomical and servicing them has become near impossible for the countries that hold the debt. Debt held by countries comes in three different forms; commercial, bilateral and multilateral. Commercial debt is money a country owes to a commercial bank. This kind of debt can be easier to service than others. Much like a private loan someone might use to buy a car or a house these loans can be refinanced, the interest can be dropped and countries can work with banks to decrees an overall payment. Bilateral debt is a loan that one countries government makes to another- like when the U.S. Export Import Bank lends money to a government to buy U.S. products. These loans can be adjusted if the debtor country qualifies