Cite as https://mymun.com/ppdb/18470
World Bank: Finland
Topic:Means to overcome the debt burden on developing nations.
Dear Delegates & Chairs,
Debt in developing countries is considered a huge problem, which the World Bank and its institutions aim to fix. For sure, there are several causes, that invoked such phenomenon. For example, such causes as the oil crisis can be attributed. The oil crisis of 1973 hit the developing countries for the reason that they relied on oil imports at first. Because of industrialization, demand for oil was higher, but due to the fact that oil prices were changeable, it was impossible to import it, what, subsequently, led to the borrowing. Another reason was inflation and interest rates, which increased after oil shock and led to higher debt. One of the most significant cause was, of course, mismanagement of projects. Projects, executed with foreign loans, were not managed properly, which resulted in project delays, for instance.