“IOU – The debt threat and why we must defuse it” by Noreena Hertz is about the Third world debt crisis – why it began, how it has evolved, what is the threat, how do we manage this threat. She does a great job of making a complex subject extremely simple and understandable.
After the first few chapters, I felt so enlightened that I began to question whether it was at all a complex subject. Quick googling confirmed that none of the articles or discussions on this topic come even remotely close to being as logical, understandable and comprehensive as this book.
The writer proves that the cause of high third world debt is a series of geopolitically motivated, commercially motivated or plain bad decisions. The consequences of these decisions have been terrible for the developing nations. She highlights that some of the poorer countries are so indebted that they pay more on debt servicing than on health care and education. With examples and reasoning, she argues that there is a high threat that some of these countries might default on payment and the impact will be felt across the world and not just within developing countries. Finally, she proposes a solution to get third world debt to manageable levels. All of this in a simple, understandable way.
At some points, I got the feeling that she was trying to hard to get the point across with some examples being used and re-used in multiple chapters in the book. Also, the solution she proposes is academically sound but unlikely to be executed in reality. But these are minor issues in a brilliant book.
After the first few chapters, I felt so enlightened that I began to question whether it was at all a complex subject. Quick googling confirmed that none of the articles or discussions on this topic come even remotely close to being as logical, understandable and comprehensive as this book.
The writer proves that the cause of high third world debt is a series of geopolitically motivated, commercially motivated or plain bad decisions. The consequences of these decisions have been terrible for the developing nations. She highlights that some of the poorer countries are so indebted that they pay more on debt servicing than on health care and education. With examples and reasoning, she argues that there is a high threat that some of these countries might default on payment and the impact will be felt across the world and not just within developing countries. Finally, she proposes a solution to get third world debt to manageable levels. All of this in a simple, understandable way.
At some points, I got the feeling that she was trying to hard to get the point across with some examples being used and re-used in multiple chapters in the book. Also, the solution she proposes is academically sound but unlikely to be executed in reality. But these are minor issues in a brilliant book.
Highly recommended read for anyone remotely interested in global issues or economics! Anyone interested can borrow the book from me. For others, I can send a one-page summary. That's how much I liked the book !
Rating - * * * * *
1 comment:
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