Public debt relief for developing countries

Intereconomics - The problem of the growing indebtedness of developing countries is playing an increasingly important role at international conferences. It was also the central subject of the ninth...     

The debt crisis and structural adjustment in developing countries

A fundamental change is emerging in the World Bank's perception of the problems of the debt overhang and in its ideas for development strategies. The author examines the implications for debtor countries.     

Indicator systems for the assessment of the external debt situation of developing countries

The foreign indebtedness of the Third World has been increasing rapidly over the past ten years. The volume of private and public borrowings expanded between the end of 1970 and the end of 1979 from $ 64 bn to $ 376 bn¹. This development has quickened the interest in methods for an assessment of the external debt situation of developing countries. Interested parties—commercial banks, international organizations, etc., and the borrowers themselves—are looking for criteria by reference to which they can monitor foreign indebtedness and ascertain in good time whether and when the foreign debt of a country is in danger of reaching “critical” dimensions. What view should be taken of the various criteria?     

The external debt situation of the least developed countries

While the external debt of the least developed countries (LLDCs) is no threat to the international financial system, its adverse impact on the development efforts of many of these countries is severe. The following article examines their debt and economic situation and reviews major elements of the current international debt strategy with regard to their adequacy in bringing the LLDCs back to sustainable debt burdens and growth. The article was written while the author was working at the OECD. The views in the article are those of the author and do not reflect those of the World Bank or its affiliates or of the OECD.     

The trade with developing countries

The classic view of the theory of foreign trade that unfettered international exchanges of goods enhance the economic welfare of all participating nations is gaining more and more ground in the discussions about development policy. Since past experience has shown capital aid alone to be incapable of lessening the prosperity differential between the North and the South, the “Aid by Trade“ strategy is now of increasing importance. There is however no panacea which would embrace the developing countries more closely in the international goods exchanges.

     

The trade with developing countries

The classic view of the theory of foreign trade that unfettered international exchanges of goods enhance the economic welfare of all participating nations is gaining more and more ground in the discussions about development policy. Since past experience has shown capital aid alone to be incapable of lessening the prosperity differential between the North and the South, the “Aid by Trade“ strategy is now of increasing importance. There is however no panacea which would embrace the developing countries more closely in the international goods exchanges.     

The flight of capital from developing countries

The export of capital, legally and illegally, is a major problem for many developing countries. The following study analyses the causes and nature of the flight of capital and estimates its scale in 34 countries.     

The transfer of technology to developing countries

Although both the industrialised countries and the developing countries have an interest in the transfer of technology, there is a considerable amount of disagreement as to how the gains from the transfer should be apportioned. Professor Hoffmann offers a theoretical analysis of the mechanisms involved in technology transfer and in the determination of the transfer's price, and makes some suggestions as to the policies to be followed by the countries involved.     

Credit card usage and consumer debt burden of households

The primary objectives of this study were to examine changes in credit card usage and the amount of debt between 1982 and 1986 and to identify factors influencing the amount of and changes in consumer debt held by households. Personal interviews were completed in 1982 and again in 1986 with the money managers of households in a small midwestern town in the U.S.A. The sample consisted of the 123 households that were represented both in the 1982 and 1986 surveys. Paired-samples t-tests were used to identify changes over time. Significant differences were found between 1982 and 1986 total household assets and total amount of debt. Regression analysis indicated that significant predictors of the amount of consumer debt burden were age, net income, total assets, and the degree to which managers felt comfortable with debt. Younger money managers were more likely to make larger monthly debt payments and have more consumer debt. Households with larger incomes and higher levels of assets also had higher total debt. Significant predictors of change in debt burden over the 4-year period were change in net income and total assets, with year-end savings being negatively correlated with consumer debt.     

The Uruguay Round: Expectations of developing countries

The recovery of world trade in the last few years has not led to an improvement in the situation of the developing countries. Many commodity prices are currently at their lowest level since the 1930s, and protectionism is on the increase. Are the Uruguay Round negotiations likely to bring positive results for the developing countries?     

The conduct of international enterprises in developing countries

Do multinational enterprises act in developing countries as a motive force for progress or do they perpetuate colonialism by different means? The fierce controversy on this question still continues, fuelled not only by basic ideological differences but by dearth of empirical evidence. Prof. Pausenberger is helping to overcome the lack of knowledge.     

The supply of international liquidity to developing countries

The gravamen of the comments by the developing countries on the problem of the supply of international liquidity is that since 1970 they have been at a great disadvantage as far as the distribution of the newly created international liquidity is concerned. At the annual IMF meeting in Manila in early October 1976 they therefore put forth a demand for a fresh allocation of SDRs¹. The question that has to be asked in this connection is whether the developing countries are justified in their criticism concerning the supply of liquidity and whether another SDR allocation is needed in order to solve their liquidity problems if any exist.     

The role of Capital markets in developing countries

Capital markets in developing countries are under increasing political pressure. What solutions are likely to the conflicts and problems that arise over the need to integrate them into exploiting the resources, and fulfilling the needs, of a developing economy as a whole?     

Testing explosive behavior of public debt in OECD countries

This paper examines the beginning and end of potentially speculative explosive public debt patterns occurring in 29 major OECD countries. The method we use is most appropriate for practical implementation with a time series and delivers a consistent date-stamping strategy for the origination and termination of multiple explosive behaviors. Our results also test that most OECD countries, except for Israel, Luxembourg, and Turkey, have experienced periods of explosive public debt. The stationarity of public debt varies by country. Approximately two-thirds of the explosive periods occurred prior to 2012. Based on the scale, structure, and safety of government debt for dynamic monitoring and evaluation, governments can improve risk management measures.     

Tourism and developing countries

The expansion of the tourist industry in developing countries is seen by both the countries themselves and international development organisations as a promising route towards boosting economic development. However, once the benefits and costs to society have been carefully weighed up this route appears very problematic in many cases.