Running into a financial crisis is the worst situation any nation could go through. Having a debt crisis is no less than a disaster. Unrest will prevail in the nation and the prices of commodities will touch the sky making it tough for the people to cope up with the growing prices and lack of resources to meet the high demand.
The island nation is going through the same and it is a classic example of how worse a nation could face if the debt crisis worsens. The prices of fuel and cooking gas in Sri Lanka stand one of the highest in the world. On top of the soaring prices, people are forced to wait for long periods at the fuel stations to get the required fuel for their vehicles.
Multiple reasons played a big role in pushing Sri Lanka into a crisis. The white elephant projects are the main reason as many projects were built with the loans taken from the dragon country China and the projects are of no use to the island nation.
Experts say that the decision taken by the farmers to shift to organic farming did not go as planned and it even added more trouble to the nation. As the products of organic farming are costly, the farmers did not get many profits and repeated use of organic farming impacted the land quality.
Well, the worst is yet to come as a recent survey says that around a dozen nations are on the verge of following the fate of Sri Lanka and these nations are going through a similar situation that was once experienced by Sri Lanka.
Washington-based international financial institution International Monetary Fund (IMF) which traces the finance-related conditions across the globe has predicted that not less than 12 nations would face the same situation. While many nations are tasting the wrath of the heavy debts they have taken, the countries like Ukraine became the victim of man-made crises like the nations.
Argentina, Ukraine, Tunisia, Ghana, Egypt, Kenya, Ethiopia, ElSalvador, Pakistan, Belarus, Ecuador, and Nigeria are the 12 nations that are in a dangerous situation.
Barring war-hit Ukraine, the nations mentioned in the IMF list are having debts that are 50 percent to over 90 percent of the Gross domestic product (GDP) of the concerned nations. It takes more than a miracle for these nations to get out of the situation.
Not just these nations, but all the other underdeveloped nations should also get worried about the situation and take measures to beat the possible crisis.
The island nation is going through the same and it is a classic example of how worse a nation could face if the debt crisis worsens. The prices of fuel and cooking gas in Sri Lanka stand one of the highest in the world. On top of the soaring prices, people are forced to wait for long periods at the fuel stations to get the required fuel for their vehicles.
Multiple reasons played a big role in pushing Sri Lanka into a crisis. The white elephant projects are the main reason as many projects were built with the loans taken from the dragon country China and the projects are of no use to the island nation.
Experts say that the decision taken by the farmers to shift to organic farming did not go as planned and it even added more trouble to the nation. As the products of organic farming are costly, the farmers did not get many profits and repeated use of organic farming impacted the land quality.
Well, the worst is yet to come as a recent survey says that around a dozen nations are on the verge of following the fate of Sri Lanka and these nations are going through a similar situation that was once experienced by Sri Lanka.
Washington-based international financial institution International Monetary Fund (IMF) which traces the finance-related conditions across the globe has predicted that not less than 12 nations would face the same situation. While many nations are tasting the wrath of the heavy debts they have taken, the countries like Ukraine became the victim of man-made crises like the nations.
Argentina, Ukraine, Tunisia, Ghana, Egypt, Kenya, Ethiopia, ElSalvador, Pakistan, Belarus, Ecuador, and Nigeria are the 12 nations that are in a dangerous situation.
Barring war-hit Ukraine, the nations mentioned in the IMF list are having debts that are 50 percent to over 90 percent of the Gross domestic product (GDP) of the concerned nations. It takes more than a miracle for these nations to get out of the situation.
Not just these nations, but all the other underdeveloped nations should also get worried about the situation and take measures to beat the possible crisis.