These IMF and World Bank policies, by taking away indebted country's sovereignty, undermines accountability by debtor governments, which in turn erodes local democratic institutions. In short, IMF and World Bank policies do more harm than good. The environmental damage magnified by indebtedness, such as destruction of forests, has global repercussions. Indebted countries are forced to use scarce dollars for debt payments instead of importing goods and services. This directly effects jobs and incomes in the rich countries.
Indebtedness creates the climate that fosters the production and trafficking of illicit drugs.
Debt also causes an increase of economic migration. It should trouble the conscience of citizens of rich nations that people living in misery have to send their money for debt servicing that they need for their own survival. V. Principles to Guide Debt-Crisis Solutions As Christians, our love of God and neighbor must be reflected by our actions within the global family. We need to examine patterns of greed that may cause us as individuals and nations to 1. Debt cancellation and relief should be fashioned in a way that benefits the poor and helps move debtor nations to sustainable human development.