Question

How do debt repayment and structural adjustment terms hamper economic development?
A.
Only wealthy nations need to repay their debts, so it slows their progress.
B.
This is no longer a problem because debt repayment was completely erased after World War II.
C.
Both measures rob a developing nation of money it could use to invest in social welfare improvements.
D.
They always penalize highly developed nations rather than underdeveloped ones.

Please select the best answer from the choices provided.

A
B
C
D

Answer 1

C

Both debt repayment and structural adjustment conditions divert government revenue and policymaking away from social spending and development programs, reducing funds available for education, healthcare, and infrastructure that promote long-term economic growth.