When the USA "lends" money to 3rd world countries,what do they expect in return ?

Question

They know very well they'll never get paid back.

Answer 1

It is so much more complicated than that. First of all, you have to break down the two parties of your question. USA should be divided into USA federal government and private institutions. 3rd world has to be divided into (at least) underdeveloped nations (private and public sector) and very poor nations.

Let us first look at the easy part: USA private sector's lending is always motivated by profit. That is by far the greatest percentage of the loans. Most of the investors are funds (retirement and investment) and banks (that borrow the money themselves in the form of C.D.s for example). So it is hard to even say how much of that money is actually USA money to begin with, put it is easy to say what is expected: profit. You are very incorrect in assuming they don't get payed. When the lending is done to goverments, most of these debts take form as bond issues, in the very same way the US Treasury issues debt.

Next in the easy scale, are the official lendings to the very poor countries. The USA lends this money either directly or via multilateral organizations such as the IMF. In these cases (to the very poor), it is only to show goodwill to the international comunity and gain some leverage in votings and to please the inner public - voters and USA public opinion.

It gets hazy whe you begin to look at USA official lending (directly or indirectly) to larger economies. Then, there are several interests in play and it is hard to single out a most important one.

It is however important to point out that at this moment, it is actually the other way around. Foreign 3rd world goverments (mainly through their central banks) are actually financing the US government by buying US Trasuries and allowing the US goverment to finance it's huge deficits. Most notedly China has been using its huge trade superavits with the US to finance the US. Why do they do it? Well, imagine they didn't and the US govtment had to cut back deeply on its spending or default on its payments. That would cause a major recession on the US economy with huge inpacts on the rest of the world, including China. That same logic is behind several US lendings to other countries.

Answer 2

That's the beauty of the USA. America gives and gives and gives, and gets such a bad rap all the time, and never expects anything in return. Since the USA is so rich and powerful, we give our wealth to the world, and we know we won't get it back. We're helping the countries that need a boost. A little gratitude, of course, would be nice every now and then. It would also be nice if we started seeing some good results, too...

Answer 3

That's a great point, we keep sending all this money all over the place in hopes that people will develop their countries, instead of just spending it all on guns and heroin....and frankly, a lot of nations just don't have it 'to go' in terms of values and self-restraint, so we 'give' a lot of money away. Ain't life grand? LOL

Answer 4

military support which we will need with world war 3

Answer 5

The money is loaned with conditions attached.

Answer 6

Its often used for stability purposes and/or leverage for future dealings

Answer 7

Souls.

Answer 8

they expect them to not hurt their people it a we'll scratch your back if you scratch ares relationship

Answer 9

Yes and they always want more and always will.

Answer 10

sexual favors