Approaches and definitions of the debt of poor countries.

This paper is on how different approaches and definitions of debts affect the loan-bearing and loan-lending country at large. It explains the problems facing the world in the era of globalization towards the goal of global equity. It looks at how debt affects the country’s fiscal policies and, in turn, affects the society.
Globalization is believed to be a powerful source for spreading equality in a world that is filled with inequality between countries as well as within and this phenomenon has simply increased over the last 200 years. Politicians claim that inequality has began to disappear since the last two decades, but there is evidence that it still exists. The fact is that only the countries that adopted the protrade policies were successful with globalization and their economies were booming during the 1960’s and the 1970’s.