The author is a vice-professor of the Institute of Latin America of Chinese Academy of Social Sciences. Benefits of utilizin external capital are evident; but negative effects are also easy to come. Particularly, when the debtor nation fails to use the debt productively or neglects the scope of the debt, the negative effects would offset the benefits, and even probably lead to debt crisis. This point is very important for China, as its foreign debt has accumulated rapidly since its opening to the outside world. In this regard, Latin America, a region well-known for its huge foreign debt burden, can offer useful lessons. Latin America's Foreign Debt, a well-written book by Zhang Baoyu, Zhou Ziqin and Lu Yinchun, scholars from the Institute of Latin American Studies at the Chinese Academy of Social Science, contributes towards this end.
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