World Debt Crisis and Its Resolution

摘要

Forgiving some of the indebtedness of developing countries may stimulate mutually beneficial trade among all nations. Many developing countries have reduced imports to cope with repayment difficulties, a policy which reduced per capita income and often limited domestic industrial investment. Reduced world trade has limited growth in developed countries, further constraining export markets. High interest rates, declining commodity prices, and currency devaluations have thrust the greatest burden of the world economic problems on debt-dependent developing countries. Increasingly frequent debt rescheduling has lengthened the crisis for many countries, often making repayment even more burdensome. The report studies 79 developing countries and suggests ways to reduce their debt and improve the global economy.