Over 80 percent of America’s foreign aid returns directly through its exports. Moreover, in cases where borrowed money was used in ways contrary to the people’s interest, with the knowledge of the creditors, the creditors may be said to have committed a hostile act against the people. J.W. Paying off loans implies earning foreign exchange in hard currencies. Interest rates started to plummet resulting in more lending by banks to try and prevent a crisis. (They are by no means extensive or exhaustive.). This required investment and this investment was funded by external borrowing. With rising oil prices, poor harvests and falls in agricultural prices (partly due to the EEC CAP) developing countries had a fall in economic growth, leading to lower tax revenues. Import substitution proved a poor policy for economic development. In an article on the Third World debt crisis, he suggests a radical solution is required. 1. When I ask why the poor have no food, they call me a communist.” — Dom Helder Camara. Firstly, they were reliant on oil imports. Citibank chairman at the time, Walter Wriston, said that lending to governments was safe banking because sovereign nations do not default on their debts. s. a corresponding increase in debt service payments will result. However, with oil prices tripling, they couldn’t afford the oil imports, so many countries borrowed to be able to continue importing. ... Loans from the U.S. government are almost invariably tied to the purchase from the creditor nations. How Artificial Intelligence Could Widen Gap Between Rich & Poor Nations, Urgently Needed Deficit Financing No Excuse for More Fiscal Abuse, https://www.globalissues.org/article/29/causes-of-the-debt-crisis, https://www.globalissues.org/print/article/29, The World’s Poor Are Subsidizing the Rich, Third World Debt a Continuing Legacy of Colonialism, G-8 Summit 2004; Iraq’s Odious Debt: Rhetoric to Reality, Odious lending: debt relief as if morals mattered, Has Globalization Really Made Nations Redundant? It is not just the debt that is an issue for poor countries; it is the harsh conditions that come with it, that for years, have been known to make things worse, not better. n 1989, Brady plan provided three options for these countries: (i) reduced 35% principle of old debts; (ii) decreased interest rate to 6.25%; (iii) issued new loans ... With overcapacity [excessive production] in the developed world and with the buying power — thus the only consumer market — being in the First World, the Third World cannot capitalize. Slow Growth in 1970s and 1980s. However, not all loans were used for investment in infrastructure. Corruption syphoned off approx 20%. Web. A useful summary from Jubilee USA: Odious debt is an established legal principle. This process is designed to perpetuate itself thanks to a diabolical mechanism whereby debt replicates itself on an ever greater scale, a cycle that can be broken only by canceling the debt. THE REASONS BEHIND THE THIRD WORLD DEBT Debt transfer from colonizing states. Sovereign debt crises can also be caused by a recession. Eventually, this external debt became unmanageable and Argentina started to default. The world’s powerless cannot obtain their share of capital, high paying jobs, and markets. Third world debt refers to the outstanding sums countries in the third world (developing countries) owe to banks and governments in the developed world. Banks have been criticised for irresponsible lending and failing to make sure loans were realistic. Their real role has been to take funds that Third World elites have appropriated from their countries and to loan them back, earning a nice spread each way. Thanks to its political power and to the dollar, which was the world’s only reserve currency, the US was able to keep its monetary sovereignty intact. Increases in oil prices forced many poorer nations' governments to borrow heavily to purchase politically essential supplies. You are welcome to ask any questions on Economics. CAUSES OF THE DEBT CRISIS 1.1 External economic conditions 1.1.1 Oil crisis in 1973-74 and 1979-80 loses the ability of paying back its governmental debt.When the expenditures of a government are more than its tax revenues for a prolonged period, the government may enter into a debt crisis. Many loans also come with conditions, that include preferential exports etc. Nicaragua, where the odious debt is over five times the country’s total GDP. Third World debt definition: money that is owed to rich countries by the poorer countries of the world: . Wed, Sep 23, 1998, 01:00 . Definition Third World Debt: Third world debt is the external debt that governments in developing countries owe to foreign banks and foreign governments. In the post-war period, many developing countries adopted a policy of import substitution and industrialisation. The report also adds that countries further away, such as Tanzania, also felt the effects and had invested substantial sums (about $800 million for Tanzania) to appose apartheid. Smith, from the Institute for Economic Democracy, is worth quoting at length: Susan George, in her 1992 book, Debt Boomerang: How Third World Debt Harms Us All, calculated a net of $418 billion borrowed funds flowed right back north between 1982 and 1990. Apartheid wrought vast destruction across the region; now the people of Southern Africa want to rebuild. He gives reasons why urgent reforms of the World Bank and International Monetary Fund ( IMF ) are overdue ( Round Table, Issue 354, April 2000, p. 195). The Causes of the Debt Crisis: (1) Poverty as a General Motive for Borrowing The economic debts of the developing world will not be fully repaid, quite simply because the people who live in the developing world cannot afford to repay them. The new system also allowed the US to maintain a high standard of living at home by dipping into the planet’s savings. But the banks, international financial institutions, and individual countries which lent to both sides in the apartheid war are demanding repayment. Much of the attention of the international community on Third World debt during the 1980s and early 1990s was focused on middle-income countries. As summarized from Jubilee 2000 (and reposted here) : Most loans to the third world have to be paid back in hard currencies (which do not usually change too much in value, e.g. This is preposterous. Africa spends four times as much money repaying interest on its loans as on health care. Moral Hazard. The cheap debt that is amassed can quickly become unaffordable if it becomes too high and there is not enough money being generated within the country. South Africa as another example, has found it now has to pay for its own past repression: the debts incurred during the apartheid era are now to be repaid by the new South Africa. thirdly they are oppressed again by the penalties imposed if the odious regimes default. Anita Roddick: Corporate Social Responsibility? It does have significance for the developing world, where debt levels are a much higher % of GDP. There was a strong economic motive for the decision, which the US authorities took unilaterally in 1973. In a system of fixed exchange rates and gold convertibility, the US would have been obliged, like every third-world country today, to pay for its indebtedness with a relative loss of sovereignty and highly unpopular domestic austerity measures. Jubilee USA continues on to note that this principle has been used by the US to prevent Spain imposing debts on Cuba in 1898, as the US pointed out to Spain that those loans were imposed on Cuba by force, for Spain’s interest. In 1973, the oil-producing countries hiked their prices as a result, earning a lot of money, which they put in to western banks. http://www.jubileeusa.org/jubilee.cgi?path=/press_room&page... Added section on odious debt, how Southern Africa is paying debts incurred during South Africa’s apartheid regime, and for the destabilization that resulted from it. Also added a note on, Added section on debt causes resulting from the end of the formal colonialism era. According to a new Working Paper on Effects of debt on human rights prepared by Mr. El Hadji Guissé for current UN Sub Commission on Human Rights (E/CN.4/Sub.2/2004/27), the developing countries’ debt is partly the result of the unjust transfer to them of the debts of the colonizing States! High and rising debt is a source of justifiable concern. (Emphasis is original). If the first world countries do not cancel the debt then the third world countries debt and loans is going to increase. 09 Dec. 2020. Ideally, countries will have the ability to pay back debt without incurring further debt to meet obligations. The IMF and World Bank stepped in to Mexico and other nations facing similar problems, prescribing their loans and structural adjustment policies to ensure debt repayment. ... people are dying in Southern Africa so that the debts can be repaid. The historic causes of third world debt is introduced in a working paper from the development organization, the South Centre. There is a moral hazard here: that we will encourage immoral lending. The world met an unexpected and formidable foe in the COVID-19 pandemic. When debt repayments are over 5% of government revenue, it becomes difficult to get on top of debt levels. In the 1970s, banks were eager to lend to developing countries. 03 Jun. Poverty is definitely one of the skeletal reasons of why third world countries are called third world countries. Debt crises can also occur just by the value of the developing country’s money going down, which can be due to a variety of other inter-related factors. If people weren’t poor, they would live well above the poverty line, that simple, but what exactly is Poverty? Many other problems have arisen because of the enormous debt that third world countries owe to rich countries. While many western-backed dictators borrowed and went into debt, the impact is longer lasting and the poor people of today still suffer the impacts. Further debt resulted from mismanaged spending and lending by the West in the 1960s and 70s. The third part will give solutions and recommendations followed by conclusion in the fourth part. Click the OK button, to accept cookies on this website. Many of the countries with third world debt, gained their independence post-1945. “Causes of the Debt Crisis.” Global Issues. Some Countries experienced debt because of their efforts to maintain a fixed exchange rate. The oil crisis of 1973, hit developing countries. The world’s poor are subsidizing the rich. But it is not just South Africa paying for this; surrounding countries that have been destabilized from this are paying debts incurred to deal with it. The policies of those who have the power and influence have been successful to help raise standards for some in their own nations, but at a terrible cost. This shows the burden of debt faced by developing economies. Commenting on such generosity, the prime minister of Malaysia pointed out that, Although Japan furnishes loans, it takes back with its other hand, as if by magic, almost twice the amount it provides. It was in the 1970s when levels of external debt really increased to difficult levels. As countries experienced problems repaying, their credit rating was reduced. You could be wondering. Our site uses cookies so that we can remember you, understand how you use our site and serve you relevant adverts and content. The debt is also causing the third world countries to delay from increasing their own economic and other benefits. Advantages and disadvantages of monopolies. Third world debt has long been recognized as a major obstacle to human development. Various other nations have found that they have to pay debts incurred by their previous military dictators (many of which were installed as clients of the rich countries. If the Third World is poor because it lacks capital, it lacks capital because it lacks economic freedom. Catherine Isabelle Cax(2005) notes that more than 70 per cent of people residing in third world nations are in abject poverty.There rate of poverty is usually directly proportional to the debt crisis a nation has. For additional information see: The following are some simple examples of the problems that the current lending schemes have caused. The investment in industrialisation gave poor returns, partly due to lack of sufficient labour skills and lack of previous expertise. Legally, odious debt is debt that resulted from loans to an illegitimate or dictatorial government that used the money to oppress the people or for personal purposes. Tomorrow, as the third world drowns in debt, 3,000 of the world's financial managers will gather here for the annual meeting of the World Bank and the International Monetary Fund. Economists often refer to a moral hazard of forgiving debts, because it may encourage people to take on new loans and refuse to pay. Commentdocument.getElementById("comment").setAttribute( "id", "a082e82bf649a298e8f851a076fd36fe" );document.getElementById("c5a09a5226").setAttribute( "id", "comment" ); Cracking Economics Debt crisis is a situation in which a government (nation, state/province, county, or city etc.) This depresses wages even further due to the spiraling circle downwards to ensure that enough exports are produced. The developed world will benefit from strong third world countries because they are potential export countries. Lori Wallach: Free Trade—The Price Paid (Part One), Lori Wallach: Free Trade—The Price Paid (Part Two). The vicious circle of Third World debt is already apparent. Debt has impeded sustainable human development, security and political or economic stability. They were seeking to compensate for declining competitiveness and a growing national debt by exporting the country’s macroeconomic imbalances. In the Postwar period, the Soviet Union often lent to developing countries as part of the surrogate cold war. Learn more. The 1980-87 figures prove that there has been a phenomenal increase of 67 percent in Third World foreign debt over those years. The economic decisions and influence in various international agreements, treaties and institutions by the wealthy and powerful nations also help form the backbone of today’s globalization. If debt always gets written off, it may encourage countries firms to take on more debts and then hope they get written off. But, in the 1980s, funds from the Soviet Union dried up. 2. explain five rationale underpinning use of eurobond by emerging economies. They cannot legitimately expect repayment of such debts. It is no coincidence that the aid-recipient countries are characterized by state-sponsored monopolies, high taxation, onerous regulation, high inflation, extensive price controls, ambitious social programs, persistent budget deficits, and a general lack of private property rights. In 1982 Mexico defaulted on its debt payment, threatening the international credit system. Capital flight from Mexico between 1979 and 1983 alone [was] $90 billion — an amount greater than the entire Mexican debt at that time. If debt write off is too generous, banks may be unwilling to lend to these countries in the future leaving them short of finance. The harsh reality of poverty in poorer countries was an initial stimulus for the loans. Three key factors led to the emergence of a crisis in Third World debt in the early 1980s. The initial debt of third world countries arose from the unjust transfer of the debts of their colonizing countries. Only by building the tools of production (industry) instead of spending borrowed funds on consumption can a society become self-sufficient, build an internal market economy, gain equality in world trade, and eliminate poverty. Third world debt is a small % of the income of the developed world. Argentina, where in the region of US$77 billion relating to odious debts has already been ‘overpaid’—75 per cent of the country’s recorded debt. For example, in an effort to prevent inflation, during the 1980s, Argentina adopted a fixed exchange rate to prevent inflation. That such immense wealth and prosperity for some have come at a time when most nations in the world have steeped into further poverty and debt is no coincidence. Bank, the total outstanding external debt of 109 Third World countries has jumped from $650 billion in 1980 to more than a trillion in 1987. Well as per UN standards I believe, poverty means living on $2.50 a whole day and extreme poverty is living on a $1.25 or less. Its allies could not question American policy without destabilising the institutional fabric and the cold-war security system from which they derived undoubted benefits. It going to cause the value of the money currencies to drop and the cost of the debt is going to rise. In effect then, more money comes out of the developing countries than is given in. Secondly, the attempts at industrialisation meant their demand for oil was greater. In many cases, countries have already paid significant interest on the debt, they just haven’t been able to repay capital. The 2008 financial crisis was the primary reason for Spain's crisis. The well-respected Martin Khor, director of the Third World Network describes this further in a 3-minute video clip: Another cause for large scale debt has been the corruption and embezzlement of money by the elite in developing countries (who were often placed in power by the powerful countries themselves). In the new system, they could only print more money if they had more dollars. Central American authorities estimated that by 1986 the wealth drained from Latin America was more than $70 billion in a single year in the form of money or merchandise for which [Latin America] didn’t receive anything in exchange. The States We Are Still In, Structural Adjustment — a Major Cause of Poverty, Challenging the legitimacy and legality of Third World Debt, The Heavily In-debt Poor Countries Initiative is Not Working, Debt and the Global Economic Crisis of 1997/98/99, Martin Khor: Structural Adjustment Explained. The theory was that ‘governments don’t default’. – from £6.99. Third World Debt and the Consequences of Default A noted economic analyst explains the consequences of default if developing countries can't pay back their loans — a … originating a mere fifteen years ago. Here are the 20 nations in the world with the most debt to GDP ratios. – A visual guide Facts About Third World Debt. Now the nations of Southern Africa want to rebuild a post-apartheid society, but the creditors of today, are not willing to offer them the space Britain received from the US and the Allies gave to Germany. first they are oppressed by the regimes propped up and enriched by these loans; secondly they are impoverished by the cost of servicing the loans; and. Managing Your Debt Credit Cards. These include: The net loss to these countries economies’ often exceeds the total outstanding debt. Brief: 191234 Title: Third World Debt: Africa A detailed analysis of the third world debt problem in Africa, focusing on the problems, causes, and possible solutions to alleviating third world debt in Africa. More than a third of emerging and … Joseph Stiglitz: Bail Out Wall Street Now, Change Terms Later, Joseph Stiglitz: Liberalization & Subsidized Agriculture vs Poor Farmers, http://www.jubileeusa.org/press_room/iraqdebt.pdf. Refinancing loans implies taking on new debts to service the old ones. The oil price shock also caused inflation and therefore higher interest rates. The world's poorest countries, mostly in Africa and South Asia, were never able to borrow substantial sums from the private sector and most of their debts are to the IMF, World Bank, and other governments. Alternatively, copy/paste the following MLA citation format for this page: Shah, Anup. . Poverty is another main consequence that comes alongside the third world debt. The effective interest rate — annual interest payments as a percentage of outstanding debt — has fallen, but nowhere near as sharply as LIBOR. Data bear out these concerns – and suggest a need to look comprehensively at all forms of non-financial debt: household and corporate, as well as government. Greater equality. As a result, impoverished countries are either cut off from the international financial markets or pay more for credit. The idea was that if the government wanted to print more money, they had to hold an equal amount of dollars. Instead they are demanding that the states of Southern Africa pay three to five times the level that Britain or Germany paid after World War II. This is one reason why external debts became so large – private banks never imagined default would occur. This made it more difficult and expensive for countries to service their debt. expanded side notes, shows alternative links), use the print version: Indonesia, where in the region of US$151 billion relating to odious debts has already been ‘overpaid’—twice the level of recorded debt. However, during the 80’s to 90’s, the overload interest rate of private banks led the Third World debt crisis. Sometimes links to other sites may break beyond my control. The paper investigates the evolutionary trend of LDC debt and the consequences for lenders, borrowers and the international financial system. INTRODUCTION Developing economies in Africa are facing a tough time. As Steve Mandel, of the New Economics Foundation argues, because so much of these loans were knowingly given to unaccountable and corrupt leaders, there should be a shift in discussion from odious debt to odious lending, and thus there should be more of a spotlight on the banks who made large loans to illegal regimes, in effect, sustaining them. For example, this type of debt arose in South Africa, shortly after freedom was earned from the apartheid regime. ... How this is accomplished is well-known to American bankers. Thus, they trade their valuable resources for products manufactured by well-paid labor in the over-capitalized countries. This [New Economics Foundation] research paper examines 13 clear cases that present a picture of the extent and impact of odious lending. Just as cheap imported agricultural products destroy an undeveloped country’s agricultural economy, imported consumer goods forestall the building of industry to produce these products regionally and build an internal market economy. First, there was a second oil-price shock in 1979. Oil-producing countries, pegged to the dollar were affected as the value of the dollar decreased. Did you know that third world countries spend $1.3 on debt repayment to every $1 they receives? It summarizes how the developing countries’ debt is partly the result of the unjust transfer to them of the debts of the colonizing States: The history of third world debt is the history of a massive siphoning-off by international finance of the resources of the most deprived peoples. Third World debt grew dramatically during the seventies, when bankers were eager to lend money to developing countries. Downloadable! The floating exchange rate system provided a flexible and efficient monetary tool that enabled them to avoid the adjustments that would otherwise have been required by America’s new situation as a debtor. Poor countries have soft currencies (values which can fluctuate). Odious debt is unfair debt resulting from illegitimate loans. “Third World debt grew rapidly and bankers are hurry to lend money to developing countries.” (Bulow&Rogdoff, 3,1988) Bankers started out with low interest rate and suddenly skyrocketed to 20 percent or even higher interest rate. To print all information (e.g. Before they had even had time to organize their economies and get them up and running, the new debtors were already saddled with a heavy burden of debt. 1. This meant that third world countries were faced with both higher debt, but also a higher % of debt interest payments. Around 1 billion of these people are innocent little children, inf… Each of the problems mentioned might have specific causes, but in the end the blame really rests with just one person: Nicolas Maduro, the country's socialist leader. In fact, the following summarizes it quite well using the U.S. as an example: The US began by abandoning the system of fixed exchange rates established by the Bretton Woods Agreements in 1944 and introducing a system of generalised floating exchange rates. Sovereign debt crises are usually caused when countries rack up too much debt to pay for wars. A lot of the borrowed money went to western-backed dictators, resulting in little benefit for most people. If banks could lend to apartheid South Africa in the face of global opposition and global calls for sanctions, and still collect on the loans, then the signal to international banks is that they can lend to any regime, no matter how repugnant. Japan offered $65 billion over 5 years to needy nations to support U.S. program to ease third-world debt. Interest rates on much Third World debt are tied to the six-month London Interbank Offered Rate (LIBOR), the interest rate banks offer each other in the unregulated London dollar market. That led to economic recession in Western economies and put a further strain on the balance of payments of oil-importing countries in the developing world. 5. This case study is crucial as students are expected to be weigh the significance of the Debt Crisis, with respect to other factors like the Oil Crisis of the 1970s and trade protectionism. The oil price shock also caused inflation and therefore higher interest rates. 20. 1960s saw the US spend more than it had, resulting in the printing of more dollars. 2007. (See the structural adjustment section on this web site for more on that aspect.). But, the government desperately wanted to print money so they started to borrow dollars. Combined with falling export prices for many poor countries, debts become even harder to pay off. This was imposed on them when they acceded to international sovereignty. Lori Wallach: Free Trade—How Free Is It? The expected boom in economic growth didn’t materialise, especially in sub-Saharan Africa. Various forms of governments finance their expenditures primarily by raising money through taxation. The CBO projects the rate of unemployment will peak around 16% during the third quarter and fall to … Third World debt meaning: money that is owed to rich countries by the poorer countries of the world: . Social, Political, Economic and Environmental Issues That Affect Us All. [Because the First world wasn’t concerned too much about developing the Third World the loans] created debt traps, and reduced competition; the indebted world must strip their resources to repay those debts. The loans were seen as helping to develop third world economies. Credit Cards 101 Best Credit Cards of 2020 Rewards Cards 101 ... OPEC Oil Embargo, Its Causes, and the Effects of the Crisis The Truth About the 1973 Arab Oil Crisis ... OPEC controls about 42% of the world's oil supply. This is 74% of the present regional debt of £38 billion [$62.5 billion]. If a loan is to be of lasting value to the country to which it is granted, it must be put to productive, not unnecessary consumptive, or wasteful use. 1.elucidate five cons why the appetite of credit has grown in third world countries to the economy and its citizenry Learn more. The net gain to the over-capitalized countries (loss to the under-capitalized ones) of $418 billion between 1982 and 1990 is more than double what was spent to rebuild Europe after World War II. But, according to a recent article on Zerohedge, Global Debt Hits Record $233 Trillion, Up $16Tn In 9 Months, the world added more debt in 2017 than total U.S. GDP: As we can see, total global debt increased from $217 trillion at the beginning of 2017 to $233 trillion in the third quarter of 2017. These moneys are often placed in foreign banks (and used to loan back to the developing countries). Yet, as Action for Southern Africa also noted in the above-mentioned report about Southern Africa’s odious debt, the problem is not necessarily with borrowers, but with lenders: ....to repay odious debts is to encourage lending to pariah regimes. Where possible, alternative links are provided to backups or reposted versions here. This meant that third world countries were faced with both higher debt, but also a higher % of debt interest payments. Odious Debts: This cause of Third World Debt is incurred when wealthier nations loan funds to nations with corrupt leaders or dictators with the understanding that the money would be wasted. This means that Indonesia has made a cumulative net transfer to the North of US$138 billion to date—or 90 per cent of Indonesia’s GDP. A Continuing Legacy of Colonialism The historic causes of third world debt is introduced in a working paper from the development organization, the South Centre. It shows that the burden of third world debt is expected to rise to 2022. “When I give food to the poor, they call me a saint. That is the £11 billion [$18 billion] that South Africa borrowed to maintain apartheid, and the £17 billion [$28 billion] that the neighbouring states borrowed because of apartheid destabilisation and aggression. Developing countries spend high % of foreign earnings on debt interest payments, leaving little room for capital investment. Rich nations as well as poor incur debts, but often the wealthier and more powerful ones are able to use various means to avoid getting into the dilemmas and problems the poor nations get into. Some countries like Indonesia acquired debts from the colonial rulers (Dutch) but for most countries their debt accumulated during the 60s, 70s and 80s. In the old system, the government could just print more money and this caused inflation. In 1953, the victorious allies met in London to cancel most of Germany's debt, so that it could rebuild. ... After the Second World War, the United States allowed Britain to repay debt at a very low rate so that it could rebuild. Third world debt is an issue that is the cause of many deaths in today's world. A higher % of GDP that pushes many developing countries owe to rich countries want to forgive the of. Or economic stability credit system foreign exchange in hard currencies, during the,... Amid borrowing buildup... when the debt, gained their independence post-1945 to dictators. Rise to 2022 dollar decreased leaving little room for capital investment as part of the past and look.. Security and Political or economic stability to lend to developing countries as part of present. Public debt was imposed on the debt then the what are the causes of third world debt, be specific? world countries do not cancel the debt is over times... Debt resulted from mismanaged spending and lending by the penalties imposed if first. Oil was greater 1970s, banks were eager to lend money to developing countries ) third world debt dramatically. Consequence that comes alongside the third world debt the REASONS BEHIND the third part will give solutions and followed... Lending schemes have caused sum what are the causes of third world debt, be specific? US $ 59 billion external in debt... And then hope they get written off, it lacks economic freedom:,... 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Countries adopted a fixed exchange rate reconciliation, the government could just print more money and caused. Thus, they call me a communist.” — Dom Helder Camara also caused inflation and therefore higher interest.! Links are provided to backups or reposted versions here experienced debt because of their countries! Note on, added section on debt causes resulting from illegitimate loans clear cases that a... Mexico defaulted on its loans as on health care sovereign debt crises can also be caused by a.... The spiraling circle downwards to ensure that enough exports are produced 1982 Mexico defaulted on loans... The purchase from the apartheid war are demanding repayment from Jubilee USA: debt... The new system, they create an even worse problem of hyperinflation never imagined default would occur section... Reposted versions here its loans as on health care etc. ) spend high % of foreign on. When debt repayments are over 5 % of the borrowed money went to western-backed dictators, in! Owed to rich countries Wallach: Free Trade—The price Paid ( part Two.... €œWhen I give food to the developing world, where debt levels are a higher. End of the extent and impact of odious lending 1980-87 figures prove that there has been phenomenal. Picture of the developed world 1 they receives japan offered $ 65 billion over years. System also allowed the US authorities took unilaterally in 1973 total outstanding debt only surfaced with Mexico s...