I want to research on the impact of external debt on the human development of developing countries. Please let me guide regarding literatrue, method and data collection.
Niam A.Fawaz Thank you so much. I am interested in human development. There are many studies on the general impact of external debt on economic growth, but I need to investigate on human development.
This is an empirical question. However, research has shown that debts hamper economic growth. If this is true, then we can say that anything that affects growth will affect income and by extension, tax revenue. If tax revenue is affected, the public budget for education will be affected. This in turn will affect human capital development given the fact that most citizens of the developing countries rely on public schools.
Only an empirical investigation can give us a reliable answer.
Since the developmental field and thought has shifted concern to human development itself, it doesn't necessarily mean that consideration is shifted from the economic perspective of development but we have to look at it from the point of how the economic policies themselves have shaped the livelihoods of the people who are targeted in the development discourse. In this light, external forces have influenced the internal dynamics of developing countries whatsoever through policies of governments like being dependent on foreign aid and borrowing money from foreign dominant powers and institutions like USA and the IMF. This had brought formidable change however in boosting economies but there is a debt crisis that have entrapped most of the developing countries including Zimbabwe as the human development has been affected by a thwarted economic growth and inefficient monetary policies to mention just a few. In my opinion, debt has remained a crisis which is one of the factors responsible for the barriers to reduce poverty and upgrade livelihoods in terms of limited access to medication and other factors.
A high level of indebtedness of the state finance system, including high external debt, is an important factor limiting the possibilities of economic development of the country, including social development in developing countries. Unfortunately, the current economic crisis caused by the SARS-CoV-2 (Covid-19) coronavirus pandemic is a serious obstacle to the rapid reduction of the debt of the state finance system.