The international
fairly taks
logitimate
satisfaction from the efforts which have been made Over the past borrowing countries, creditor
three years by all
concerned
countries, commercial banks, TAY and IBRD alike. Ent though the sense of czicie
e bas eased, dakt kazdane ToRRİC
to the inter
inter
a threat
system.
to
It vas clear at the outset that the
that the debt problems would not be solved quickly. It Gas bound
take 2 considerable tire for
individual debtor countries to recover, and longer still for the group of major borrowing countries as a whole.
It is worth reminding ourselves that the process of adjustment does not require the elimination of all external debt, or anything
like that.
It is natural that capital should flow from industrialised to developing countries, and that developing countries should in consequence be fairly substantial net debtors, supplementing their domestic saving by external borrowing. problems arise as in the 1970s when borrowers and lenders over
estimate the capacity of the borrowing countries to service debt, particularly when this is coupled with the unproductive use some of the proceeds.
immediate need has been met by
During these past few years, the
the case-by-case strategy which has been followed
vide
differences between countries meant that problems of each of the had to be considered separately on their merits. In all CASCE there had to be a considerable adjustment in the domestic econoäies
of the indebted countries, and the task during these years been to get that process started. At the same time, there need for creditors private and official alike to roll.
outstanding debt and add some Dey financing to
to belp eaza
burdens. This approach was embodied in the London Susait co
in 1984 which, with its encouragement of multi-year resche
also made a start in tackling the longer tera aspects
problem.
-
-
The need for continued adjustment cannot be avoided. and painful as the initial process inevitably is (and some