The world economy,external debt and prospects for development financing

This paper provides an overview of the evolution of the industrial economies in the 1960s, with particular attention to the factors which gave rise to the economic crisis of recent years. The effects of this international economic instability on the developing economies is then considered, especially the weakening of their balance-of-payments position which has increased their dependence on external finance. The author indicates that the developing countries' growing reliance on credits from private international banks gives cause for concern and he proceeds to make some suggestions for other mechanisms of development financing.