Tag Archives: World Economy

Life and Debt

“The pattern of the B labor contract was quite clear. You never got out of debt. Easy credit was part of the system, and so were irritants that forced you to exercise it…And while I worked, a new debt would accumulate.”

This forcibly reminds me of my world literature class last semester when we talked about the negative effects the World Bank and other institutions have on developing countries. What happens is that developing countries borrow money from the World Bank, which restricts what they are allowed to do with it. As a result, their economies never get independent from first world countries, and they are unable to pay the debt ┬áback. The debt increases with time and the additional money they have to borrow. I think Pohl was drawing attention to this vicious cycle in today’s world economy.