Bolin, William H.; Del Canto, Jorge
June 1983
Foreign Affairs;Summer83, Vol. 61 Issue 4, p1099
This article focuses on the long-term aspects of the debt problem of developing countries. The debt problem of developing countries is of concern to private banks which hold most of the debt as well as to their respective governments and creditor countries. The real problem regarding the debt of developing countries, in the long term, is the source of future credit for their imports of capital goods. In the absence of increased public money, new mechanisms are needed to assure access to private funds. There is an urgent need for a system which would mobilize support from the export sectors of the industrial countries through joint financing by the national export credit organizations, private commercial banks and the World Bank. Its aim would be to use private funds that would effectively meet the needs of developing countries, especially for imports of capital goods, and thus contribute greatly to their economic development. The use of private bank funds by developing countries has been going on since World War II. The principal borrowers from private banks are the semi-developed countries which must be continuous and growing importers of capital and credit. No nation has moved from underdeveloped to industrialized without steadily increasing flows of credit.


Related Articles

  • External Debt: Banking Bonanza.  // Emerging Europe Monitor: Russia & CIS;Oct2007, Vol. 11 Issue 10, p1 

    The article reports on the external debt dynamics in Ukraine. It states that despite government efforts to cool down financial institutions' external borrowing, the external debt pile will continue to increase. It adds that banks increased their external borrowing by 23 percent...

  • DETERMINANTS OF SOVEREIGN-DEBT DEFAULT IN DEVELOPING COUNTRIES. Zeaiter, Hussein F. // Journal of International Finance & Economics;2009, Vol. 9 Issue 4, p131 

    During the last three decades, many countries have defaulted on their sovereign debt, which has had the effect of worsening the international financial situation. This study examines developing countries' inability to service their external debt and the factors that are the main influence on...

  • La búsqueda de la estabilidad financiera. George, Eddie // Boletín del CEMLA;sep/oct1994, Vol. 40 Issue 5, p206 

    No abstract available.

  • DOES FOREIGN AID AFFECT THE ENVIRONMENT IN DEVELOPING ECONOMIES? Arvin, B. Mak; Dabir-Alai, Parviz; Lew, Byron // Journal of Economic Development;Jun2006, Vol. 31 Issue 1, p63 

    Preserving the environment is important from both national and international perspectives. Similarly, the provision of foreign assistance from richer to poorer nations is often seen as an imperative. However, there is a noticeable gap in research on how aid flows are linked to the environment in...

  • Transnationalization and Monetarism. Furtado, Celso // International Journal of Political Economy;Spring87, Vol. 17 Issue 1, p15 

    The author of this article examines the postwar process of transnationalization of the world economy, of which Third World indebtedness is but one of the manifestations. It is significant that the process of internationalization and debt growth in Latin America takes place in a rapidly growing...

  • RESCUING THE LDCS. Beim, David O. // Foreign Affairs;Jul1977, Vol. 55 Issue 4 

    For the first time in many years, a large number of people have begun to worry whether the countries could service all of the debt they are incurring and whether the banking system, particularly the large, international U.S. banks, could go on accommodating their increasingly strained financial...

  • Field Listing - Debt - external.  // CIA World Fact Book;2008, p1 

    A list of the amount of external debt of each country around the world is presented.

  • America's Capacity to Pay.  // Saturday Evening Post;12/31/1932, Vol. 205 Issue 27, p22 

    Comments on the capacity of the U.S. to pay its foreign debts as of December 1932. Economic condition of the country; Comparison between the capacity of the U.S. and Great Britain to pay their debts; Overview of the U.S.-European financial relations.

  • An Analysis of External Debt Behavior in the Developing World. Kim, Hae S. // National Social Science Journal;Oct2010, Vol. 35 Issue 1, p63 

    The article presents an analysis of the behavior of external debt in the developing world. It explores the interrelationship of external debt burden and sustainability variables with the other political, internal socioeconomic, and demographic variables. It determines several external debt...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics