Solutions for Developing-Country External Debt

Abstract

DEVELOPING-country external debt is an economic, social, and political issue. The debt weighs heavily on the shoulders of the debtor nations, crippling their domestic social and economic programs, as well as preventing them from participating effectively in international activities such as trade. Individuals and families in these countries are deprived of even the most basic elements of living. The debt problem also affects the rich/creditor nations as developing countries with stagnating or crippled economies cannot be effective trading partners. Furthermore, the social and economic strife caused by the crippling debt has a domino knock-down effect on the richer nations. The debt problem has been around continuously for over thirty years.2 Countries that have faced debt crises at different periods are geographically widespread: from Mexico and Argentina; Poland and Romania; Morocco, Tunisia, and Nigeria; Philippines and Indonesia; to Uganda,