A framework to reduce the burden of debt must: (a) allow debtors to grow faster and export more; (b) enable the cost of debt service to fall.
Possible financial options include: (a) inflow of new capital through foreign direct investment; (b) conversion of foreign currency debt into domestic currency investment through debt equity swaps, thus altering the debtors' obligation and reducing their interest-bearing external debt; (c) conversion of existing loans into local currencies, thus repatriating flight capital and alleviating the drain on foreign currency resources; (d) using performance bonds or commodity-indexed bonds as a source of new money, although this would not significantly reduce debt overhang; (e) cushioning interest rate and currency shocks to debtor countries through financial engineering and liability management - for example, interest rate swaps and interest rate caps reduce interest rate sensitivity of existing liabilities by converting floating rate borrowings into fixed rate liabilities or by putting a ceiling on future interest rates; (f) new contractual arrangements between debtors and lenders, for example by subordinating existing debt to future loans, giving the latter senior status; (g) sharing the burden between debtors and creditors and providing debt relief by partial write-offs of existing loans; (h) partial or complete interest capitalization as an alternative to accumulating new loans to finance interest due.
The Encyclopedia of World Problems and Human Potential is a collaboration between UIA and Mankind 2000, started in 1972. It is the result of an ambitious effort to collect and present information on the problems with which humanity is confronted, as well as the challenges such problems pose to concept formation, values and development strategies. Problems included are those identified in international periodicals but especially in the documents of some 60,000 international non-profit organizations, profiled in the Yearbook of International Organizations.
The Encyclopedia includes problems which such groups choose to perceive and act upon, whether or not their existence is denied by others claiming greater expertise. Indeed such claims and counter-claims figure in many of the problem descriptions in order to reflect the often paralyzing dynamics of international debate. In the light of the interdependence demonstrated among world problems in every sector, emphasis is placed on the need for approaches which are sufficiently complex to encompass the factions, conflicts and rival worldviews that undermine collective initiative towards a promising future.
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