External debt in developing economies: assessment and policy issues

Vol. 27 No. 1 (2007)

Jan-Mar / 2007
Published March 17, 2020

How to Cite

Holland, Márcio. 2007. “External Debt in Developing Economies: Assessment and Policy Issues”. Brazilian Journal of Political Economy 27 (1):20-40. https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/552.

External debt in developing economies: assessment and policy issues

Márcio Holland
I am CNPq Researcher and Professor of Economics at Escola de Economia de São Paulo – FGV-SP
Brazilian Journal of Political Economy, Vol. 27 No. 1 (2007), Jan-Mar / 2007, Pages 20-40


More than one decade after the external debt restructuring (the Brady Plan), a great amount of literature has been published concerning the balance sheet factors in developing countries. The staff of international multilateral institutions joined with reputable academics in this great controversy. The external debt problem of the developing countries is back and once more reflections on its cause and on policy recommendations are analytically distinct. Our main task is to reflect on the recent external debt dynamics and assess how this debt has evolved. Our findings indicate that the susceptibility of some developing countries to default is associated with global imbalance, that is, the way they borrow.

JEL Classification: F33, F34, F59.

Keywords: External Debt Developing Countries Original Sin Debt Sustainability Assessment