Debt Cancellation and its impact on poverty in developing countries PowerPoint Presentation

Debt Cancellation and its impact on poverty in developing countries - PowerPoint Presentation Example The paper tells that debt relief or debt cancellation is partial or full forgiveness of debt from developed countries to developing or poorest countries. Organisation for Economic Co-operation and Development noted that debt service payments in hard currency in fact scarce domestic resources from major important investments such as in health and education and thus cause poverty as well. Debt relief is thus an integral part of the efforts taken by international community to reduce poverty worldwide. In 1996, World Bank and International Monetary Fund took initiative for Debt Relief whereby Heavily Indebted Poor Countries (HIPC) will get faster, deeper and broader debt relief. This agreement was designed with a view to make these countries introduce measures to reduce poverty in these countries. By 2005, The Multilateral Debt Relief initiative was agreed to provide 100 percent cancellation of IMF, World Bank, African Development Bank and Inter American Development Bank for all those co untries that have completed HIPC initiative. The HIPC initiative has been aiming to provide debt relief to 40 most poorest countries, with a condition that all these countries must have high level of poverty and unmanageable levels of debt. In order for a country to be eligible for debt relief, it is required to demonstrate World Bank and IMF that it has plans to reduce poverty in the country. The HIP countries later have shown sincere commitment to put sound macroeconomic policies with a view to reduce poverty. ... 269). The HIP countries later have shown sincere commitment to put sound macroeconomic policies with a view to reduce poverty (IMF and World Bank, 2001). The main purpose of HIPC initiative and debt relief was poverty reduction, and this has been found to be highly effective for many countries. The debt relief or debt cancellation to poorest countries has been found to be an effective way to improve health and education in the country and thus to reduce poverty. Figure given below illustrates that spending on education and health as improved due to the HIPC debt relief. Lala, Ranganathan and Libresco (2006, p. 6) observed that debt relief was becoming an ongoing mechanism for resource transfer so that the country can free up resources for poverty reduction purposes. It is generally agreed that debt relief to poorest countries has caused improvements in health and education spending due to resources transfer and as a result poverty has been reduced in the poorest countries. But, it is also argued that it may not be the same in the case of developing countries. Cancellation of Developing Countries’ debt and poverty problem It is argued that debt relief or debt cancellation owed by developing countries may result to reduce poverty since these countries will be able to adopt domestic policies and strengthen institutions to take advantages of global markets, which in turn help them increase the share of trade in their GDP. As these countries gain debt relief, they can participate in globalization by exporting to or importing from other countries and thus to be able to maintain favorable balance of payments. These countries also would

Business Management and Strategies Essay Example | Topics and Well Written Essays - 2500 words

Business Management and Strategies - Essay Example Some models mean the same thing but are given different names by their creators. With the evolution of the internet, many new models have emerged. At the same time, some do not stay long and have gone. Rappa (no date) identifies nine generic forms of business models, including the brokerage model, advertising model, infomediary model, merchant model, manufacturer model, affiliate model, community model, subscription model, and utility model. Timmers (1998) classifies business models by positioning them along the two dimensions of the degree of innovation and functional integration. In Novak and Hoffman (2001)'s customer-centric framework, for any business model to be successful, it must integrate customer models, value models, and revenue models. In this paper, the customer-centric framework of Novak and Hoffman (2001) will be adopted as each of the three subsidiary model answers questions such as who are the communities or customers served by the firm, how the firm attracts target a udience, and where does the revenue for the firm come from respectively. A THEORETICAL FRAMEWORK: NOVAK AND HOFFMAN'S CUSTOMER-CENTRIC BUSINESS MODEL According to Novak and Hoffman (2001)'s customer-centric framework, a successful business model consists of customer models, value models, and revenue models. A customer model is a segmentation of the users of the electronic business. The four groups of users are businesses, consumers, agents, and employees. Each customer model consists of two groups of users. The most common type of customer model seen on the internet today would be businesses to consumers. Businesses to businesses and consumers to consumers are not uncommon as well. Therefore, fourteen segmentations of customer models are possible, as shown by Figure 1. Figure 1 Customer Models Business (B) Consumer (C) Agent (A) Employee (E) Business (B) B:B B:C B:A B:E Consumer (C) C:B C:C C:A C:E Agent (A) A:B A:C A:A A:E Employee (E) E:B E:C E:A E:E Novak and Hoffman, 2001 The value model of Novak and Hoffman (2001)'s framework seeks to address how firms can attract target audience by providing them value. The twelve possibilities of how the web can create value are by offering brokerage service, content, search tools, incentives, freeware, communication, control, outsourcing, entertainment, transactions, affiliate opportunities, and communities. Of course, any model would not have commercial feasibility if it does not generate revenue for the firm. The revenue model identifies the revenue stream of the firm conducting electronic business. The seventeen revenue models are transaction fees, hosting fees, referral fees, subscription fees, license fees, pay-per-view, pay-per-performance, micropayment, advertising, sponsorships, ransom model, margin on sales of goods or services, sale of customer data, offline customer response, efficiency and effectiveness gains, value-added services (linux model), and virtual real estate. Various value models and revenu e models can be created