Foreign Debts: Avoid economic slavery, don warns low income countries
A Don, Dr Boniface Igbeneghu, has warned low income countries to avoid economic slavery by curbing their penchant for borrowing and incurring foreign debts.
Igbeneghu, who is the Deputy Director, Confucius Institute University of Lagos, made the remarks in an interview with press men in Lagos on Tuesday.
The don urged the low income countries to intensify their quest for alternative revenue in order not to borrow and incur debts.
“Low income nation’s such as Nigeria and other developing countries must intensify their diversification drive to enable them meet their obligations.
“Diversification gives them the opportunity to have other sources of income rather than depend on one source of earning,” he said.
Igbeneghu stressed the need for the third world countries to entrenched good governance at all levels of government so as to reduce waste and manage borrowing in the economy.
“Good governance is the panacea and must become a national way of life, if funds will be judiciously utilised in the economy.
“Having such system in place will ensure the institution does work and deal with rising debts,’’ the don said.
Igbeneghu said the emerging and the developing countries must ensure that they industrialise in order to attain economic independence.
Reports has it that the International Monetary Fund (IMF) has put the global debt at 180 trillion dollars, warning highly indebted emerging-markets and low-income countries against what it termed pro-cyclical fiscal policies.
IMF Managing Director, Christine Lagarde, in a statement issued at the conclusion of the Group of 20 (G-20) Summit in Buenos Aires, called for collaborative action by G-20 leaders as global growth moderates and risks increased.
Lagarde emphasised that global growth remained strong, but that it was moderating and becoming more uneven.
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