The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

International Indebtedness

  • Vladimir Brailovsky
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_937

Abstract

After World War II many less-developed economies started industrialization programmes which contributed to the achievement of rapid and sustained growth of income. Although industrialization meant a continuous reduction of the import propensity of their economies, growth also implied that the level of imports tended to exceed that of exports. This gap was covered by external indebtedness and, to a lesser extent, by direct foreign investment. During the 1950s and the early 1960s, credit was granted mainly by the governments of advanced economies and multilateral financial organizations. Starting from the mid-1960s, however, international indebtedness was increasingly dominated by private banking, reducing the element of aid implicit in previous arrangements. More importantly, this shift in the nature of credit flows was less conducive to the coordination of policies between industrial and developing countries, the consequences of which became apparent later on.

This is a preview of subscription content, log in to check access

Bibliography

  1. CEPG (Cambridge Economic Policy Group). 1980. World trade and finance: prospects for the 1980s. Cambridge Economic Policy Review 63, Department of Applied Economics, University of Cambridge and Gower Publishing Company.Google Scholar
  2. ECLA (Economic Commission for Latin America). 1985. Estudio Económico de América Latina y el Caribe, 1984. United Nations, Economic and Social Council, LC/L.330.Google Scholar
  3. Kaletsky, A. 1985. The costs of default. New York: Priority Press.Google Scholar
  4. Llewellyn, J., S. Potter, and L. Samuelson. 1985. Economic forecasting and policy: The international dimension. London: Routledge & Kegan Paul.Google Scholar
  5. Winkler, M. 1933. Foreign bonds: An autopsy. Philadelphia: R. Swain.Google Scholar
  6. Wood, P. 1980. The law and practice of international finance. London: Sweet and Maxwell.Google Scholar
  7. Wynne, W. 1951. State insolvency and foreign bondholders: Case histories, vol. 2. New Haven: Yale University Press.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Vladimir Brailovsky
    • 1
  1. 1.