Eduqas A-Level Sociology A200QS
Culture and the Social Construction of Culture
Socialisation and Its Agencies
Socialisation and Identity
Option: Families and HouseholdsFamilies
Option: Youth CulturesYouth cultures
Option: EducationEducation
Option: MediaMedia
Option: ReligionReligion
Research Methods: Primary and Secondary
Sampling, Ethics and Practical Issues
Key Concepts and Theories of Research
Social Inequality: Evidence and Patterns
Theories and Explanations of Inequality and Stratification
Option: Crime and DevianceCrime
Option: Health and DisabilityHealth
Option: PoliticsPolitics
Option: World SociologyWorld sociology
Option: World Sociology
Debt, structural adjustment and development policy
- 3 things to know
- Component 3 Section B
Overview
Debt servicing, odious debt and structural adjustment programmes.
What you need to know
Answer each one before you reveal it.
What is odious debt?
What are structural adjustment programmes?
Questions from this subtopic
Each one with the model answer underneath.
- 1
How did the debt crisis of developing countries arise?
Model answer
Large loans were extended to developing countries in the 1970s, when oil revenues were being recycled through banks and interest rates were low. When interest rates rose sharply and commodity prices fell in the early 1980s, servicing the debt became unmanageable.
- 2
What is debt servicing, and why is it a burden?
Model answer
Debt servicing is the payment of interest and repayment of principal. Debt servicing is a burden because it consumes government revenue and foreign currency that would otherwise fund health, education and infrastructure. Payment continues regardless of a country's circumstances.
- 3
What is odious debt?
Model answer
Odious debt is the argument that some debt should not bind the successor state or the people. The debt must have been contracted by an unaccountable regime, without benefit to the population and with the lender's knowledge. The argument has been made in several cases but is not established in law.
- 4
What are structural adjustment programmes?
Model answer
Structural adjustment programmes were conditions attached by the International Monetary Fund and World Bank to lending from the 1980s, typically requiring reduced public spending, privatisation, currency devaluation, removal of subsidies and opening to trade and investment.
- 5
What was the reasoning behind structural adjustment?
Model answer
The reasoning was that debt problems reflected unsustainable state spending and distorted markets. Restoring the capacity to repay therefore required reducing deficits and freeing prices. Markets rather than governments were to allocate resources.
- 6
What criticisms were made of structural adjustment?
Model answer
Critics argued that spending cuts fell on health and education, and that user fees excluded the poorest. Removal of food and fuel subsidies raised prices sharply, and devaluation raised the cost of imports. The programmes deepened poverty while often failing to restore growth.
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