Inadequate world monetary system

(Ref. 702)
Problem Components
Policy issue area: World
Policy issue: Economy
Description: Serious instability of the world monetary system.
Symptoms: Global inflation; unmanageable national indebtedness to international lending institutions; soaring national fiscal deficits.
Causes: Decline in the rate of economic development; political mismanagement.
Cost of problem: -
Solution Components
Resources: International financial institutions; governments and financial institutions of industrialized countries.
Goal: Encourage economic cooperation among nations, and create new financial and monetary mechanisms to encourage world economic development.
Program area: World economic development
Program-remedy: 1. Restructure, and in some cases forgive, Third World debts
2. Developed nations to provide more foreign aid
3. Create new mechanism for managing the international financial system.
Program-prevent: Implementing the U.S. Grand Moral Strategy of dismantling gradually military establishments, in cooperation with our allies, to provide additional funds for development.
Cost of program: -
Beneficiaries: Economies of both developed and less developed countries.

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