The paper studies the growth of external debt in developing countries and the constraints it imposes on national development. It shows that, unlike domestic debt in advanced economies, external debt must be serviced in foreign currency, which forces debtor states to expand exports, reduce imports, or resort to new borrowing. The article links rising indebtedness to structural imbalances in the international economy and to the widening gap between developed and developing countries. It argues that debt service can disrupt domestic finance, weaken development planning, and deepen dependence on external creditors.
Sabah Naoush (Sun,) studied this question.