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Foreign Assistance, Debt and Development

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Growth and Development

Abstract

In an open economy domestic savings can be supplemented by many kinds of external assistance. In this section the role of foreign borrowing in the development process will be considered, together with the debt-servicing problems associated with it, and particularly the debt ‘crisis’ of the 1980s. Later, we shall consider types of foreign assistance including bilateral assistance from the developed countries, multilateral assistance from the World Bank, and private foreign investment. The criticisms of foreign assistance will come under close scrutiny. In this chapter the emphasis is on longer-term resource flows to developing countries rather than on the provision of short-term balance-of-payments support which is the traditional function of the International Monetary Fund which we consider in Chapter 15.

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Author information

Authors and Affiliations

  1. University of Kent at Canterbury, Canterbury, UK

    A. P. Thirlwall (Professor of Applied Economics)

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  1. A. P. Thirlwall
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© 1989 A. P. Thirlwall

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Thirlwall, A.P. (1989). Foreign Assistance, Debt and Development. In: Growth and Development. Palgrave, London. https://doi.org/10.1007/978-1-349-19837-5_13

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