The problem is easy to state: developing countries borrow too much-or are lent too much-and in ways that force them to bear most or all of the risk of subsequent increases in interest rates, fluctuations in the exchange rate, or decreases in income. Given this, it is not surprising that they often cannot repay what is owed.
Joseph StiglitzRelated topics
bear borrow developing easy exchange force given income interest lent problem rate risk state subsequent surprising rates waysRelated quotes
Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion the technique of the army and of the modern totalitarian state. The other is voluntary cooperation of individuals the technique of the marketplace.
Milton Friedman
Whoever has become a servant of the Lord fears only his Master. But whoever is without the fear of God is often afraid of his own shadow. Fearfulness is the daughter of unbelief. A proud soul is the slave of fear; hoping in itself, in comes to such a state that it is startled by a small noise, and is afraid of the dark.
John Climacus
