When it comes to loans and debts, it is hard for you to escape from their clutches. This is why financial management and self-control are the need of the day. However, businesses and people often fail to exercise the skills they need to remain debt free. This, of course, turns very serious as most of the time the uncontrolled debts result in insolvency and bankruptcy. It is the need of the day for you to be aware of positive debt management techniques so that you do not fall neck deep into vicious debt that not only controls your life but can completely ruin you as well.
Nations like people and businesses also take debts
As individuals and enterprises, countries also take debts. They need loans for their capital and infrastructural developments for the people of their nation. These nations take their loans from the World Bank, and they like people and businesses can run into neck-deep debts and pending payments. This Bank governs and manages the sanction of debts taken by its member countries. There are of course some nations in the world that are not members of The World Bank.
An insight into the World Bank and its functions
Most nations in the world entrust The World Bank Group to manage their money. The World Bank was established in 1944 to manage debts of developing nations for their capital programs. The Bank is owned by governments of member nations that have the power to make policy and financial decisions. They also address issues that are faced by member countries. To become a member of The World Bank, the country needs to join The International Monetary Fund or the IMF. The Vice President of The Corporate Secretariat coordinates member status and new membership.
As mentioned above there are some nations that are not part of the World Bank. They manage their economic affairs on their own, and again some nations in the world are entirely free from debt. These nations have managed to remain positive and free from loans when it comes to the development and the governance of their countries.
Who are not members of The World Bank?
Six countries are not members of The World Bank, and they are Nauru, Monaco, North Korea, Cuba, Liechtenstein, and Andorra. Taiwan is the nation with the largest economy that is outside of the World Bank Group. The observer states in the world, Vatican City, and Palestine are not part of the World Bank.
After the Second World War, USA and Canada joined the World Bank. Today, USA is the sole nation that has about 33% of the debts in the world. Its debt amount is approximately $17.3 trillion, and it is the number one country when it comes to debts. Canada is number 15 in the list of countries struggling with debt. It has a total debt of about 1.3 trillion dollars.
Now, experts say that given the present condition of debts taken by nations across the world, will the current currency be relevant today? They are off in the opinion that wild and reckless debt taken by countries could bring back humanity to the era of barter where you have to make trades for getting products and services.
It is evident that the next question might strike you- are there nations that are free from debt? Yes, there are. The following are the top 5 debt-free nations in the world-
1 Macao
This nation is said to be like Las Vegas except for steroids and cocaine. In fact, it is bigger than Las Vegas by about five times. As per the Economic Intelligence Unit or the EIU, it is the fastest growing country in the world. Around 50% of its residents are Buddhists, and the major languages spoken are Cantonese and Portuguese.
2 The British Virgin Islands
Most people like to drop the word “British” here and simply call the region the Virgin Islands. It is an overseas territory of the UK and non-sovereign. It is a self-governing region and has about 60 small islands. It is regarded as one of the most economically prosperous regions of The Caribbean Islands.
3 Palau
This is a nation that enjoys zero debt. It is a beautiful landscape covered by lovely hills and blue oceans. There are six island groups in this country, and if you are fond of snorkeling, you should come here. There are around 300 islands in the country, and it is located in the Pacific Ocean. It has a meager population of about 21,000 people.
4 Liechtenstein
This nation borders Austria and Switzerland and has a population of about 35,000 people. It is a small country and has an area of 62 square miles. It is an independent nation economically. It is the 6th smallest nation in the globe. The population of this nation consists of Italian and Turkish people. It sports a strong economy and boosts of the lowest unemployment rate in the world. This nation is filled with beautiful forests, castles, and mountains. It is a significant tourist attraction for most people across the globe.
5 Brunei
Brunei in Malaysia is colorful and musical at the same time. It is an officially independent nation from 1984. Most of its residents are employed in the oil and gas industries. Only 2% of the land in Brunei is agricultural. The nation is very close to the South China Sea that links The Pacific and Indian Oceans. The gas production makes up for 90% of its GDP.
Therefore, when it comes to debt-free nations in the world, the above five countries are on the top of the list. Though their global counterparts have not been able to stay away from the clutches of debt, these nations have successfully managed to do so and are positive role models in the world today when it comes to high-quality living debt free!
Guest Writer: Kelly Wilson is an experienced and skilled Business Consultant and Financial advisor in the USA. She helps clients both personal and professional in long-term wealth building plans.During her spare time, she loves to write on Business, Finance, Marketing, Social Media.She loves to share her knowledge and Experts tips with her readers.