Growing out of debt

Many issues of global economic can be left to the markets to decide. Others require administrative intervention to advance matters.

When issues of debt service threaten the economic recovery of poor countries and make developed countries both creditors and donors, political initiatives are necessary and a political lead has to be given to the lower-level decisions of the markets and of national and international regulatory bodies.

Thus, political initiatives to make debt crisis more managable by addressing payment imbalances and simultaneously attempting to restimulate demand are necessary. Some debts, in fact, are better considered cancelled or reduced.

That notwithstanding, the authors refuse the assumption that developing countries cannot grow out of debt. In fact, it is our collective interest to facilitate this process.