{
  "title": "External Debt Histories of Ten Low-Income Developing Countries: Lessons from Their Experience",
  "publication": "IMF Working Papers, May 1, 1998",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/external-debt-histories-of-ten-low-income-developing-countries-lessons-from-their-experience-2603",
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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 macroec",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- The external debt burden of many low-income developing countries has increased significantly since the 1970s.\n- Developments in a sample of ten countries show that the main factors behind the buildup of debt were:\n  - (1) exogenous (adverse terms of trade shocks or weather)\n  - (2) a lack of sustained macroeconomic adjustment and structural reforms\n  - (3) nonconcessional lending arid refinancing policies of creditors\n  - (4) inadequate debt management\n  - (5) political factors (civil war and social strife)"
    },
    {
      "heading": "Causes and mechanisms",
      "content": "- Exogenous shocks:\n  - Adverse terms of trade shocks\n  - Weather events\n- Domestic policy and institutional weaknesses:\n  - Lack of sustained macroeconomic adjustment\n  - Incomplete structural reforms\n  - Inadequate debt management\n- External creditor behavior:\n  - Nonconcessional lending\n  - Refinancing policies of creditors\n- Political instability:\n  - Civil war and social strife contributing to higher debt burdens"
    },
    {
      "heading": "Policy recommendations and implications",
      "content": "- Future policies should:\n  - Limit the need for external financing\n  - Create an environment conducive to diversifying export growth\n  - Manage debt more prudently\n  - Base economic projections on more cautious assumptions"
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Agricultural commodities, Commodities, Debt burden, Export performance, Exports, External debt, International trade\n- 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\n\n---\n\n Content in this bundle\n\n- wp9872\n  - wp9872 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp9872 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/external-debt-histories-of-ten-low-income-developing-countries-lessons-from-their-experience-2603"
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    "Authors: Kevin Ross, R. Brooks, Robert Powell, Ydahlia A. Metzgen Quemarez, Doris C Ross, Mariano Cortes, Saqib Rizavi, Benoit Ketchekmen, Francesca Fornasari",
    "Published: May 1, 1998",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451849318.001",
    "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:",
    "Exogenous shocks:",
    "Domestic policy and institutional weaknesses:",
    "External creditor behavior:",
    "Political instability:",
    "Future policies should:",
    "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",
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