External Debt Histories of Ten Low-Income Developing Countries: Lessons from Their Experience

By Kevin Ross, R. Brooks, Robert Powell, Ydahlia A. Metzgen Quemarez, Doris C Ross, Mariano Cortes, Saqib Rizavi, Benoit Ketchekmen, Francesca Fornasari

May 1, 1998

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Kevin Ross, R. Brooks, Robert Powell, Ydahlia A. Metzgen Quemarez, Doris C Ross, Mariano Cortes, Saqib Rizavi, Benoit Ketchekmen, and Francesca Fornasari. External Debt Histories of Ten Low-Income Developing Countries: Lessons from Their Experience, (USA: International Monetary Fund, 1998) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The external debt burden of many low-income developing countries has increased significantly since the 1970s. Developments in a sample of ten countries show that the main factors behind the buildup of debt were (1) exogenous (adverse terms of trade shocks or weather), (2) a lack of sustained macroeconomic adjustment and structural reforms, (3) nonconcessional lending arid refinancing policies of creditors, (4) inadequate debt management, and (5) political factors (civil war and social strife). Future policies should limit the need for external financing and create an environment conducive to diversifying export growth, managing debt more prudently, and basing economic projections on more cautious assumptions.

Subject: Agricultural commodities, Commodities, Debt burden, Export performance, Exports, External debt, International trade

Keywords: Agricultural commodities, Bolivia's export earnings, Commodity price projection, Concessional terms, Debt, Debt burden, Debt problem, Debt-servicing capacity, Export, Export base, Export concentration, Export performance, Export receipt, Exports, External Debt, Financing needs, Global, HIPCs, Low-Income Countries, Niger, Oil price projection, Price, Prudent debt strategy, World oil price projection, WP, Zambia

Publication Details

Pages:

140
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1998/072
Stock No:

WPIEA0721998
ISBN:

9781451849318
ISSN:

1018-5941

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