The Effects of Government Borrowing on the Rights of Future Generations

Abstract

Loans are an extra income for a state to provide the citizens requirement which ensure basic services. But, at the same time, it is one of the sensitive issues for states since there must be a legal and legislative basis to be relied on when borrowing according to the legal standards. The international bank is one of the financial establishments that it lends states for development and covers the fiscal deficit according to specific conditions which make the state subject to the creditor.
So, loans are financial burdens on the side of the upcoming generations when using it in reconstruction for the upcoming generations. In case the loans are used in meeting basic needs, the current generation would make benefit of it and would burden on the next generations depriving them from their constitutional rights. In addition, the loans could be swapped with investment projects so as to reduce the burdens of debt and, at the same time, keep the rights of the next generation.