External Debt Histories of Ten Low-Income Developing Countries: Lessons from Their Experience
May 1, 1998
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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
Pages:
140
Volume:
1998
DOI:
Issue:
072
Series:
Working Paper No. 1998/072
Stock No:
WPIEA0721998
ISBN:
9781451849318
ISSN:
1018-5941
