Rescuing the LDCs. [Proposal of developed countries to maintain current account deficits]

Journal Article · Fri Jul 01 04:00:00 EDT 1977 · Foreign Aff.; (United States)

DOI:https://doi.org/10.2307/20039733· OSTI ID:7321645

Beim, D O

Analysis of the debt accumulated by less-developed countries (LDCs) leads to a recommendation that the U.S. and other developed countries maintain current account deficits to make it easier for the LDCs to purchase goods and services. International trade policy is too complicated to finance LDC borrowing needs and maintain trade barriers at the same time. An effort to retain LDC access to markets is valid in order to maintain their ability to purchase our manufactured goods and to ease the repayment of debts to our banks. A review of LDC debt development separates commercial (those having access to commercial banks) and aid-dependent (those relying only on foreign aid) countries and uses the examples of Argentina, Peru, and Zaire. Excessive debts can cause lenders to press for slower economic growth, resulting in recession and political unrest. A better solution is seen in the current account deficit since it would stimulate the LDC's economy by easing trade barriers and would let them repay their debts by claiming foreign bank deposits or purchasing U.S. notes and bills. (DCK)

• Research Organization: Export-Import Bank of the United States, Washington, DC
• OSTI ID: 7321645
• Journal Information: Foreign Aff.; (United States), Journal Name: Foreign Aff.; (United States) Vol. 55:4; ISSN FRNAA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
AFRICA
AGREEMENTS
ARGENTINA
CAPITAL
COMPETITION
DEVELOPING COUNTRIES
ECONOMIC DEVELOPMENT
ECONOMIC IMPACT
ECONOMIC POLICY
ECONOMICS
FINANCING
FOREIGN POLICY
GOVERNMENT POLICIES
INTERNATIONAL AGREEMENTS
INTERNATIONAL COOPERATION
LATIN AMERICA
MARKET
PERU
SOUTH AMERICA
TRADE
ZAIRE REPUBLIC