Abstract
Developing country (LDC) debt to the rest of the world grew at an annual rate of over 16 percent from 1973 to 1982. Debt grew as a percentage of aggregate Gross National Product (GNP) from about 18 percent to over 29 percent, representing a significant increase in the burden of debt on the developing economies. This rate of growth precipitated the international debt crisis, which has percolated continually since that time. Long-term debt of the LDC’ s was over $700 billion by 1985, and total debt including short-term obligations has now topped $1 trillion. Although there are many potential solutions to the debt problem, most require that the international aid agencies, such as the International Monetary Fund (IMF) and the World Bank, play a key role. Two avenues of international debt relief can be facilitated by these agencies. The most direct is that they are a source of low-interest concessional lending, thus reducing the debt service requirements of the mountain of debt.
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Cashel-Cordo, P., Craig, S.G. (1989). Donors, Development, and Debt: The Role of External Assistance and External Indebtedness. In: DeGregori, T.R. (eds) Development Economics: Theory, Practice, and Prospects. Recent Economic Thought Series, vol 16. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-1077-5_10
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DOI: https://doi.org/10.1007/978-94-009-1077-5_10
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