finanical instabilities in third world countries
The first major issues triggering the financial instabilities in third world countries started when all the countries were being colonized causing segregation and a hierarchy. When developed worlds were being colonized, they used the money for industrialization and infrastructure to build their country. Thus making them the First World countries like Canada and the United States, but when the developing countries were colonized and given money, instead of using it for agriculture and natural resources , they used it for military and also industrialization, but it didn’t work for them. Therefore causing them to start going in debt and asking for grants and becoming the Third World countries. Basically the history of colonization made the foot prints to what each country is today, from being First world or Third world. One the other hand, even though first world countries are the ones colonized first, they still deal with financial instabilities and banking crisis. For example, the recession that Canada and U. S face today; stock Market crash, debt crisis, and asking for loans from other major countries; all prove that every country experiences banking crisis and financial instabilities. In addition, another root to financial instabilities in third world countries is governments abusing the loans that they receive. An example would be Zimbabwe using all there money for military, and then print more money to help pay for their debts, but by exporting more money it causes a huge inflation, thus decreasing their currency by a great number.