Current debt levels are fiscally unsustainable and, even if they were sustainable, are detrimental to the prospects for development in the indebted countries. The Caribbean cannot achieve rising standards of living for its people in the presence of existing debt service obligations and debt induced economic vulnerability. Intuition and empirical evidence on the relationship between debt and development suggest that, while low levels of debt can be beneficial to developmental outcomes (provided that the borrowed capital is properly used) high levels of debt are obstacles to such outcomes. Source: Caribbean Development Bank, Public Sector Debt in the Caribbean: An Agenda for Reduction and Sustainability Compare the debt situations in two Caribbean countries - Jamaica and Antigua and Barbuda, over the past two decades. A. Discuss and compare the causes of the debt levels in both countries. B. What impact did the debt situation have on the standard of living of the citizens in the countries. C. Critically analyse and compare the strategies that were implemented by both countries to alleviate its debt situation and examine the effectiveness of the strategies.
Current debt levels are fiscally unsustainable and, even if they were sustainable, are detrimental
to the prospects for development in the indebted countries. The Caribbean cannot achieve rising
standards of living for its people in the presence of existing debt service obligations and debt
induced economic vulnerability. Intuition and empirical evidence on the relationship between
debt and development suggest that, while low levels of debt can be beneficial to developmental
outcomes (provided that the borrowed capital is properly used) high levels of debt are obstacles
to such outcomes. Source: Caribbean Development Bank, Public Sector Debt in the Caribbean:
An Agenda for Reduction and Sustainability
Compare the debt situations in two Caribbean countries - Jamaica and Antigua and Barbuda,
over the past two decades.
A. Discuss and compare the causes of the debt levels in both countries.
B. What impact did the debt situation have on the standard of living of the citizens in the
countries.
C. Critically analyse and compare the strategies that were implemented by both countries to
alleviate its debt situation and examine the effectiveness of the strategies.
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