Editing Debt of developing countries (section)

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The '''debt of developing countries''' usually refers to the [[external debt]] incurred by governments of [[developing country|developing countries]].

There have been several historical episodes of governments of developing countries borrowing in quantities beyond their ability to repay. "Unpayable debt" is external debt with interest that exceeds what the country's politicians think they can collect from taxpayers, based on the nation's [[gross domestic product]], thus preventing it from ever being repaid. The debt can result from many causes.

Some of the high levels of debt were amassed following the [[1973 oil crisis]]. Increases in oil prices forced many poorer nations' governments to borrow heavily to purchase politically essential supplies. At the same time, [[OPEC]] funds deposited and [[Petrodollar recycling|"recycled"]] through western banks provided a ready source of funds for loans. While a portion of borrowed funds went towards [[infrastructure]] and economic development financed by central governments, a portion was lost to [[Political corruption|corruption]] and about one-fifth was spent on arms{{citation needed|date=September 2020}}.