Thursday, July 28, 2005

Make Trade Fair

commissao de vendedores
Originally uploaded by make_change.
Let's be honest. The fact is: developing countries are in debt and remain in impoverish situations partly because of unfair rates of interest on loans and strict conditions on trade. I see where part of where it comes from: high interest rates for those who are high risk of default. It is a large cost to monitor and maintain continuous payment by those with loans particularly thoe clients who choose to neglect the payment plan and go into arrears (do not pay on time) for months on end. This was part of the case with microfinance where the financial officers who had to look for those not paying their loans as some individuals mysteriously disappear - pack up their bags and none to be seen of their business or family. As for countries, are high interest rates necessary given the fact that we know of their whereabouts and central banks play a role in much of the distribution of wealth?

at the craft market
Originally uploaded by make_change.
As for the trade side, governments are seeking more equality in the forms of trade. The African Growth and Opportunity Act ( allows certain African countries to free market trade with the U.S. Some organizations such as Technoserve work with groups in the developing world to upgrade their technologies and training in order to sell their services and products in the global market. Oxfam also advocate the end of excess Western subsidized product sold cheaply in developing countries where farmers are forced to dump the local product unable to match the unrealistic prices from abroad. I guess the question remains to be seen: do we buy local or foreign?

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