Comments by "Peter" (@peter65zzfdfh) on "DW News"
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@A.S.D442 Somalia has less than half the Debt to GDP ratio of Argentina. Basically, they're poorer than Somalia, and Somalia's economy is tiny compared to Argentina's, so debt forgiveness is a big component of how Somalia has not suffered in the same way, because there are much much smaller amounts to forgive. Argentina owes 100x as much money as Somalia, that means there's a lot more USD in Somalia compared to the size of the economy. Also, the USD isn't the official currency of Somalia, using it unofficially allows the government to manage parts of the economy in different ways, once you give up your own currency you lose that ability. Yes, you can mis-manage that ability as in Argentina, but that mis-management was less of the actual issue than the stagnant GDP which is the relevant metric regardless of which currency you use, Somalia's GDP has doubled in 10 years. Argentina's GDP hasn't gone anywhere in that time.
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