Third world debt must grow

Summary Approximately 60 percent of the debt owed by the World's Developing Countries is to the international banks. The author gives an economic analysis of the situation and concludes that real growth for the less developed countries (LDCs) will justify further increased borrowing.Malcolm Crawford is Senior Economist (Finance) with Business International UK Limited. This paper is based on an article which first appeared inLloyds Bank Review, January, 1985. The updating preceded the Baker Initiative in October 1985, in which the US Treasury Secretary announced proposals for increased lending by banks and international organisations to 15 selected debtor countries.