| Activity title | The Debt Diamond |
| Overview |
In this activity, students work in small groups to debate different concepts and arguments relating to sovereign debt, and to come to an agreed consensus about the importance and validity (or lack of importance) of these concepts. It is a knowledge-based type of learning which is combined with analytical skills development. The learning scenario improves students’ critical thinking skills, communication skills and use of ICT resources. |
| Objectives |
This activity aims to deepen students’ understanding of the causes of debt crises by enabling them to use information they have learned in discussion with their classmates. It also aims to enhance their ability to argue a case, and to listen to and engage with differing opinions. |
| Materials | Multiple printed copies of four case studies. Debt “key concept” cards (see below). Blu-tac. Small stickers (enough for three per learner). |
| Time |
30-45 minutes |
| Instructions For Trainers: |
(A) 5 minutes: Start by encouraging the group to discuss debt on a personal level. Ask them: Have you ever been in debt or has anyone been in debt to you? How does it feel?Why did you take the loan? What would happen if you couldn’t repay or be paid the debt? Separate the group into small groups of up to 4 people each. Give each group 1 set of cards. (B) 10 minutes: Ask students to examine the statements on the cards together. Ask them to identify which ones they agree with or disagree with. Ask them to arrange the cards in a diamond, with the one they most strongly agree with at the top, and the two they feel next strongly about on the next line, and continue until the statement they most disagree with is at the bottom. Show them the ‘debt diamond’ graphic as a guide. It is important that all the people in the group have a say about where the cards go. Where there is disagreement, this should be discussed in the group. (C) 15 minutes When everyone is finished arranging their cards, they should present their diamond to the whole group, explaining why they ordered their cards in this particular format. Encourage students to debate between groups about why their order was ‘correct,’ and to come up with reasoning for the choices that they made. |
| Group size | 4 – 30 |
Debt Diamond Cards
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It is always morally wrong not to repay a debt. |
The world’s poorest countries should pay off their debts regardless of the consequences for their peoples. |
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Debt is the result of mismanagement and corruption, and those in charge shouldn’t be allowed to get away with it. |
Today’s generations of poor people in poor countries should not be held responsible for the mistakes of those who went before. |
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Rich countries should be able to give loans to maximise the profits of their own corporations, without having to consider all possible long-term effects. |
Poor country debts are particularly harmful to women. |
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Debt is a cause of environmental damage |
The debt crisis is a major cause of war and terrorism |
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We can’t get rid of poverty without debt cancellation |
If poor countries adopt the economic policies of international experts (such as the International Monetary Fund), their problems will be solved. |
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Add your own card… |
