P/E/202. Dissertation. Causes of debt growth in the Third World

This dissertation aims to explore historic, economic, moral and political arguments used in the debate on the Third World debt crisis. Using secondary methods of research, i.e. a critical review of academic sources, the author argues that countries enter a debt crisis when debt grows faster than their respective economies. Various points of view on how to deal with the Third World debt are outlined on the basis of the literature review. Internal and external factors causing the debt crisis are discussed; case studies of Chile and Argentina are presented. Conclusions are made about the underlying causes of debt growth.