Third World Debt Essay -- essays papers

Third ball Debt For most of the underdeveloped countries, the need to exploit their resources, maturation their GDP up to an acceptable train and overcome their inability to cope with the necessary imports to cover domestic wants, caused a major enlarge in their external debt. Prior to the Third World debt crisis in 1982, Developing countries managed to keep the levels of external borrowing at rugged points, mainly due to the fact that the loans they were receiving had comparatively low interest rates, and their think was to increase imports of capital goods. Additionally, their mail loaners were Developed countries and financial institutions, such as the World Bank. However, in the period between 1982 and 1989, a major increase in Third World counrties external debt led to economic difficulties and blush high political instability. During the 20-year period between 1970 and 1989 the external debt of Developing countries grew from $68.4 gazillion to $1283 billion, an increase of 1846 % . The main reasons for which Third World Debt rose dramatically during the 80s have their roots to the late 70s.The most strong ones are Rise in oil prices. It led most of the OPEC countries to crinkle their oil surplus in order to face the crisis and benefit from increase demand. Therefore, profit-purpose banks were encouraged from governments to grant loans to LDC countries, in order to avoid the effects of the increase in oil prices. A significant numb...