To support the needs of a country, many things are needed such as educational facilities, health, security and others. In this case, almost all countries make loans so that the development and economy of a country remain stable.
But debt is not everything for the life and death of a country.
Then can the country live without debt? Although the number is small, it turns out that a country that can stand up without debt is not a utopian thing. Reporting from the media are mostly small countries. Which country? the following include:
Anguilla is an overseas region of the United Kingdom in the Caribbean region. This small, wealthy country consists of 5 islands, with the capital city of The Valley on the main island of Anguilla. Anguilla’s main industries are fisheries and tourism.
British Virgin Islands
A non-sovereign British territory, also known as the ‘Virgin Islands’ has an independent system of government. This country is also sticking up when there is the Panama Papers case where many people make companies in this country. Besides not having a debt, the British Virgin Island is a tax-free country. This country is also the richest in the Caribbean Islands. One of the interesting things about British Virgin Islands is that you don’t need a visa to come here.
The country has a population of 35 thousand people and is located on the border of Austria and Switzerland. It is only 62 square miles and makes it the sixth smallest country in the world. This country is also ranked second with the lowest unemployment rate. Not only that, Liechtenstein also has a strong economy with GDP (gross development product) per person reaching USD95 thousand.
Macau is a paradise for gamblers in Asia. Even people call China’s Las Vegas. This small neighboring country from Hong Kong is referred to as one country that has no debt. According to the Ecnonomist Intelligence Unit (ENU), Macau is believed to generate USD40 billion per year in 2013. That number is up 19% from the previous year.
Palau is an archipelago that has 300 islands and is known as a snorkeling paradise for tourists. The population of this debt free country is only 21 thousand people. The population is diverse, namely 70% of the island’s indigenous people, 15% of Filipinos, 5% of Chinese, 2% of whites and 8% of Asians.
Niue is an archipelago in the South Pacific Ocean dubbed the Polynesian Coral. the Island is home to less than 2,000 people. Although the government stands alone, has a free association with New Zealand which provides around USD14 million in aid and most of them handle foreign affairs and defense. Prime Minister Toke Talagi said that island had managed to pay up to 4 million US dollars and was not interested in making loans anymore.
Wallis and Futuna
The Wallis and Futuna Islands are a French overseas community located in the southern Pacific Ocean, between Fiji and Samoa. The archipelago consists of three tropical volcanic islands: Wallis (Uvea), Futuna, and Alofi.
Countries Bankrupt due to Debt:
Greece (debt of USD138 billion)
In March 2012, Greece could not pay its debts worth USD138 billion. However, Greece received assistance from partners in Europe in the form of bailouts. This is what triggered the crisis in Greece.
Argentina (USD95 billion debt)
In November 2001, the Argentine currency was pegged with USD in many years. But apparently, the exchange rate of the Argentine currency with foreign currency became inaccurate. A panic finally emerged, and Argentine citizens began withdrawing money from banks, but were detained by the government. In July 2014, Argentina was declared default (default).
Puerto Rico (debt of USD73 billion)
The Commonwealth of the United States (US) country was also unable to pay its bond debt because it ran out of cash. Puerto Rico was unable to meet the requirements for debt restructuring which reached USD73 billion. Puerto Rico Governor Alejandro Garcia Padilla said his country could not pay off debts.
Jamaica (debt of USD7.9 billion)
It happened in February 2010. The country’s government has spent a large amount of budget spending for years, and the high inflation makes Jamaica unable to pay its debts. The Jamaican economy suffered due to the economic recession in the US at the end of 2008.
Zimbabwe (debt of USD4.5 billion)
In 2008, Zimbabwe, one of the countries in the African region, also recorded a dark story in its economic history. At that time, one of the poorest countries in Africa was in debt of $ 4.5 billion and unable to pay it off.