The Fundamentals

Abstract

Let us begin with some facts. Consider Table 1.1. During 1986 new international lending to industrial countries (in the form of bank credits and bonds) was $270 billion. This compares with a figure of $35 billion in 1976. This eight-fold increase compares with the 50 per cent increase in lending to developing countries over the same period. In terms of proportions, the industrial countries attracted over 90 per cent of new international bank lending in 1986 in contrast to the 65 per cent in 1976. New lending to the developing countries represented only 8 per cent of the total in 1986.