Debt rescheduling: the economics of entrapment under globalization

Abstract

Globalization is the terminology applied to the on-going process of villagisation of the world. It is a description of the close interaction in every sphere by humans all over the world as a result of high-speed, high-tech information systems. In particular, globalization has accentuated commercial intercourse and international economic relations. In the process, people have become indebted to others. Indebtedness of mammoth dimensions occasioned a frantic search for solutions to forestall the collapse of the international financial system. Among many outcomes is debt rescheduling as a strategy of debt management. Being, by definition, the alteration of the terms of repayment of a loan with respect to the grace period permissible, the interest rates chargeable, and the overall maturity period, its adoption and application by Nigeria has not only proved dysfunctional, but also instrumental to debt perpetuation and entrapment. The paper is a synoptic economics of debt rescheduling as a strategy for permanent classification of Nigeria as a debtor country.

Keywords: debt rescheduling, globalization

Journal of Technology and Education in Nigeria Vol. 9(2) 2004: 40-44