Answer to Question 1
Student answers will vary. Arguments should include the eventual economic cost of illnesses and loss of materials and infrastructure associated with pollution, which many times are not considered in the economic argument.
Answer to Question 2
Debt crisis: Borrowers become overwhelmed by interest payments. Theoretically, development projects were intended to generate additional revenues that would be sufficient for the recipient to pay back the loan with interest. This did not occur, and the debt situation continues to be an economic, social, and ecological crisis for many developing countries. Interest payments have resulted in a net flow to the creditor countries. . . . The concept of fostering the development of poor countries through massive loans for large-scale projectswhatever the advantages in enhancing gross national productshas not broken the cycle of excess population, poverty, and environmental degradation.
The World Bank is addressing the problems of debt and poverty directly through two new initiatives: the Consultative Group to Assist the Poorest (CGAP) and the Heavily Indebted Poor Countries (HIPC) initiative. CGAP is designed to increase access to financial services for very poor households though what is called microfinancing.' The HIPC initiative addresses the dept problem of 42 of the poorest developing countriesamounting to 190 billion in 2000by providing direct debt relief to a level deemed sustainable.
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