BEYOND THE DEBT CRISIS

ISBN: 9781334348945 Géneros: KFFM Sinópsis: Excerpt from Beyond the Debt Crisis Alternative Forms of Financing GrowthThe financing requirements of developing countries are small relative to the size of world capital markets Even an ambitious figure of 20 billion a year is less than 10 percent of the current net debt financing provided by oecd markets and institutions Individual countries face a virtually elastic supply on the condition that they are able to make credible commitments to meet the terms of their obligations2 Therefore tapping new sources of funds should not be expected to increase greatly the potential supply of funds to a particular country A given country however may increase its actual supply of funds or reduce the degree of debt relief required to put it back on a current basis by recontracting in a way that shifts the pattern of promised payments across future circumstances and thus expands the range of commitments it can back with credibility Our focus therefore is not on the size of external financial markets or of these markets potential appetite for LDC assets rather it is on how commercial alternatives to general obligation finance can increase the actual supply of funds to these countries reduce the burden imposed by external financing and improve the performance of the assets financedWe take it as given that the overriding goal of a restructuring a countrys obligations and recapitalizing its economy is to restore an acceptable level of growth in the short run and provide the basis for dynamic longrun development involving domestic as well as foreign private interests The primary reasons for changing not only the amount but also the structure of financing are toAbout the PublisherForgotten Books publishes hundreds of thousands of rare and classic books Find more at wwwforgottenbookscomThis book is a reproduction of an important historical work Forgotten Books uses stateoftheart technology to digitally reconstruct the work pr