Problems
Sovereign debt problems have been a major public policy issue since World War II, including the treatment of debt related to that war, the developing country "debt crisis" in the 1980s, and the shocks of the 1998 Russian financial crisis and Argentina's default in 2001.
Not all developing countries have been affected to the same extent. For example Yugoslavia had low government debt (perhaps because it was unable to borrow on world markets) until its breakup and the coming of democracy, when the new national governments started to borrow money from the IMF. Croatia has a government debt of $47 billion today while the whole of Yugoslavia (six times as many people as Croatia) in 1980 had debt of $14 billion.
Read more about this topic: Government Debt
Famous quotes containing the word problems:
““What we know, is a point to what we do not know.” Open any recent journal of science, and weigh the problems suggested concerning Light, Heat, Electricity, Magnetism, Physiology, Geology, and judge whether the interest of natural science is likely to be soon exhausted.”
—Ralph Waldo Emerson (1803–1882)
“It is not impossible, of course, after such an administration as Roosevelt’s and after the change in method that I could not but adapt in view of my different way of looking at things, that questions should arise as to whether I should go back on the principles of the Roosevelt administration.... I have a government of limited power under a Constitution, and we have got to work out our problems on the basis of law. Now, if that is reactionary, then I am a reactionary.”
—William Howard Taft (1857–1930)
“More than a decade after our fellow citizens began bedding down on the sidewalks, their problems continue to seem so intractable that we have begun to do psychologically what government has been incapable of doing programmatically. We bring the numbers down—not by solving the problem, but by deciding it’s their own damn fault.”
—Anna Quindlen (b. 1952)