Perspective on the debt of developing countries
Since 1973, when the price of oil was raised very sharply, developing countries have incurred heavy debts. This paper looks at their ability to carry debt, first by examining the balance of payments and external borrowing of all developing countries that are not oil producers in general. It then focuses on a group of ten advanced developing countries (Argentina, Brazil, Chile, Colombia, Mexico, Peru, Phillipines, South Korea, Taiwan, and Thailand) that account for the bulk of the borrowing from private sources that has given rise to widely expressed concern. The analysis that follows leads to an optimistic conclusion about the capacity of the ten countries not only to carry their present debt but to expand it. It does not follow that decision makers in private financial markets will come to the same conclusion. Thus, attention is given also to supplementing private lending with resources supplied by the International Monetary Fund. Furthermore, questions are raised about what could go wrong--what international developments could make the outlook less rosy for the heavy debtors.
- OSTI ID:
- 5355046
- Journal Information:
- Brookings Pap. Econ. Act.; (United States), Vol. 2
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
ARGENTINA
LIABILITIES
BRAZIL
CHILE
COLOMBIA
DEVELOPING COUNTRIES
MEXICO
PERU
PHILIPPINES
REPUBLIC OF KOREA
TAIWAN
THAILAND
CAPITAL
DECISION MAKING
ECONOMICS
ECONOMY
ENERGY SOURCES
GLOBAL ASPECTS
INTERNATIONAL AGREEMENTS
INTERNATIONAL COOPERATION
OPEC
PETROLEUM
PRODUCTION
AGREEMENTS
ASIA
FOSSIL FUELS
FUELS
INTERNATIONAL ORGANIZATIONS
NORTH AMERICA
SOUTH AMERICA
290200* - Energy Planning & Policy- Economics & Sociology