The vicious circle

July 11, 2001
Issue 
455

Debt service payments and reforms attached to debt relief and new loans

Reduced government spending and focus on export earning projects

Reduced access to and poorer quality of services. Increase migration for employment

HIV/AIDS flourishes

Weakened economy and reduced quantity and quality of public services

Smaller government budget (loans required) and lower rate of economic growth (makes service payments more difficult)

Source: The Vicious Circle, World Development Movement.

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