The Political Nature of Debt

Debt is fundamentally a political relationship rather than merely an economic one, characterized by unequal power dynamics between creditors and debtors. This view challenges the conventional idea that debt operates on equal terms, similar to an exchange of goods and services. Political power plays a critical role in determining who receives credit, who gets favorable terms, and who faces harsh conditions, illustrating how power dynamics shape these transactions. The relationship between war and debt is also important, as conflicts create massive debts that significantly impact nations, such as the case with Ukraine, which is currently burdened by debts exacerbated by its ongoing war.