MANAGING WORLD DEBT- UMBERTO TASSONIA

Our world today is in a crisis due to a lot if things such as natural disasters, global warming, wars amongst other things which all have an effect on the economy of the world and hence our living standards. More serious is the predicament of debt that many countries in the world find themselves in, and it is not only being felt in the developing nations alone, but also in the developed world. This debt, according to Umberto Tassoni is usually incurred so as to try and uplift the social standards in the respective countries; however, these countries are getting deeper and deeper into debt, something which the world leaders have been unable to solve though they see the imminent danger.

One way of ensuring that the debt incurred is regulated is by analyzing if the borrowing is indeed necessary. According to Umberto Tassoni, there are many governments which borrow funds from other nations, only to have them end up in the pockets of a few individuals, who are in most cases the politicians charged with ensuring that the development projects are initiated. This usually leaves the funds not utilized in the proper manner, and with the development projects still necessary, more funds would be channeled to them thus increasing the debt. Hence, proper accountability systems have to be in place before one gives money, as the effects of the deterioration of the economy of one country usually affects many others, as noted by UmbertoTassoni.

The large donors such as the International Monetary Fund, World Bank as well as the developed nations that usually are the lenders of the money that many of the developing nations borrow could also decide to wipe off some of the money that is owed to them by certain nations. This should be especially b done when the debt of the particular country in question seems to be getting out of hand, such that the payment of the debt seems to be a near impossibility. This would really help the citizens if such a country to hope for a better life as funds would soon be available for more development in their country due to the reduced pressure of debt. Umberto Tassoni also says that these countries should be the ones to initiate development projects in such countries and offer tips on how to avoid getting themselves into such a situation again.

It would be quite suicidal of the developing nations to just give money away and then cancel the debt so as to manage the debt, as the developing nations would be the ones now getting hurt. The developed nations and also the organizations such as the World Bank should help in putting in place programs for debt management, which according to UmbertoTassoni, would help in ensuring that the countries put in measures to ensure that the debt gets cleared in due time, and also so that such situations do not arise again, or that should borrowing be necessary, that the countries use the money well.



Umberto Tassoni is the author of this article on Umberto Tassoni. Find more information on Umberto Tassoni here.