Debt is not a new problem for countries or individuals, nor is it solely a feature of poor countries. Debt affects all of us. However, many poor countries spend more on debt repayments than they do on health and education combined.

Despite paying back two or three times what they originally borrowed, countries still find their debt growing. Debt must be repaid in hard currency, which means dollars. As world prices of goods fall, the demand for more dollars encourages activity such as illegal drug production and destruction of rainforests.