North-South Finance

Excerpt from North-South Finance: The Implications of Overreliance on Bank Credit The absolute growth in LDC external financing has been accompanied by substantial shifts in the composition of LDC obligations. The most striking change, documented in Table l, is the increase in debt relative to direct foreign investment, the only significant category of risk financing for most ldcs. Total debt rose from 69 percent of total LDC obligations in 1973 to 83 percent in 1981. Further, short-term debt grew more quickly than long-term debt and debt from private sources, primarily commercial banks, outstripped official lending. However, this privatization on the lending side was not accompanied by a similar shift on the borrowing side. Rather, the proportion of long-term debt owed by or guaranteed by LDC governments rose from 74 to 79 percent. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.