Post
Topic
Board Economics
Re: Some negative effects of foreign loans and bailouts to developing countries
by
Queentoshi
on 04/06/2025, 23:41:47 UTC
(6)_______Undermining Democratic Governance

Foreign aid and loans  can sometimes be used to undermine democratic processes or influence political outcomes, potentially hindering the development of strong, accountable institutions foreign influence usually play out this way as these countries giving out the loan feel that these countries owe them so they will like to have  their ways in such countries.
This is no lie for individuals who borrow money, because borrowing money can puts you at a position where you have to remain humble towards the lender and it is the same for countries. Democratic countries will need to accept some foreign policies and rules in order to be eligible for loans and financial aid or assistance. These truthfully puts their democracy at a position where it can be questioned because some policies will be imposed on them by virtue of their need and they will have no choice than to follow.