Government Debt to GDP

Is there a relationship between the level of Gov Debt to GD and the development level of a country?

The examples suggest, high debt levels are an indication of the 'development' level, leaving room for some exceptions.

ying-Yang these are research worthy hypothesis .

One problem with us we often create hypothesis and then either reject or accept without doing research. Our base of thinking is often emotional than rational.

If you look at Greece Italy Portugal the debt became a killer to them making them PIGS... Yet Japan and their debt is worth studying.

US being the owner of base currency of the world will not affect by high debt.

I guess it depends on what the borrowings have been invested in. With high debt either you are in deep shit or minting profit. Or is that a simplistic view ?

Backstage wrote:I guess it depends on what the borrowings have been invested in. With high debt either you are in deep shit or minting profit. Or is that a simplistic view ?

Though I don't like the words you used, what you said is true. At the same time I would say if you create one elephant targeting tourism that will become White even the feasibility reports say its Jet Black...If you make more White Elephants at feasibility level targeting tourism soon all will become hard earning Black Elephants...

If you have only Nelum Kuluna no tourist want to visit that... Yet if you have Port city, Safari worlds, Mattala Airports, Hambanthtota Habour harboring passenger ships, Highways, monorails, expressways, Seminar Halls, Casinos, Tourist Hotels,,etc etc... all will be Black Elephants...Just construct one only and wait you can prove its a white elephant...

Government is putting ads saying Debt Trap...while increasing state debt to gdp in 2015...Instead of blaming the previous leader now its their turn to brainstorm and do something...

Good point you made YK.
We are haemorrhaging and brainstorming is needed to find a way to stop us bleeding to death than creating more White Elephants.

thanks Kith

In real terms Tourism is the last resort of countries that see no future... Pure dependency on tourism is ok for Maldives but not four us. In that aspect I agree with you.

Then we have to move into manufacturing creating Monopolies in the areas where we can like in Tile where we can dig ceramic related material form earth.. How about Pulmudai Mineral sand deposit...Why not we allow another tycoon to develop something out of that and sell..

How about identifying few Family Trees like Meril, Sena, and allowing massive loans through our banking system to them to get into manufacturing...and limiting banks to banking and directing Pawning, Leasing, Personal Loans to NBFIs...

How about having an EXIM bank and introducing re-discounting system for exports...

Are we really brainstorming or mud slinging ?