Discuss the process of debt accumulation in poor countries, i.e. how loans are granted, fall behind in payment, and eventually often lead to a crisis and perhaps “debt relief”. How can a negative cycle be avoided? Should we be granting debt relief, and if so, on what terms? How is this related to capital flight? (Preferably based on Easterly but anything works)

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Poor countries are those countries that have low per capita income low standard of income the availability of infrastructure is low both social and economic infrastructure GDP growth is low Political ... View the full answer