Developing countries and world economy are not contrasts, them are integrated however in the world trade imperfectly, their commercial structure are on one side to production by cash Crops aligned, under the colonial age, term the OF trade are not extremely unfavorable for them to at all and their public foreign debt rise like an explosion. They denied 1987 (OPEC states excluded) only 16% of the world trade. The exports, which for the industrial structure and the economic growth are of fundamental importance, are usually limited to few products. Up to 70% are purely agrarian or mineral raw materials, while the imported goods predominantly consist of capital goods. Many countries take their foreign exchange too over 50% purely from the export of only one raw material. At the world industrial production they are too straight once 12% involved. The developing countries keep 22% of the exports from the industrialized countries, the industrialized countries almost 100% of the exports from the developing countries scarce. As language pipe that originally 77 developing countries was created 1964 on the first United nation Conference on trade and development (UNCTAD) "„the group of the 77 "“. The "“group of the 77"” pointed out that from the structure of the world trade relations a disadvantage of the developing countries results and demanded therefore one "„new international economic system "“(NWWO). They required further a larger participation in decision-making processes of international extent, a stabilization of the markets, stronger control of the multinational societies and a better integration into the world economic system.

The dependence on one-sided raw material exports draws serious problems for the developing countries. Varying world prices and production losses make foreign exchange incomes in advance uncalculable, what represents a large factor of uncertainty for planning of the national budget. In addition the particularly serious competition comes by other offerers or Substitutionsprodukte, as well as the restrictive commercial practices of many industrial nations. Because of this high competition pressure the developing countries can not shorten their production, but are rather forced this even further to be increased, which expresses itself in an increasing price purge. Also work the different price history of raw materials and manufactured products development restraining. By the sinking Rohstoffpreise, the countries with their receipts from exports can import less and less manufactured products, which are needed however for the restaurant structure.

Foreign trade

The economic development of a country depends mostly on the foreign trade. Via it supplies of raw materials, finished goods, capital and technical knowledge take place. Via the foreign trade also the development of global sales markets and thus the income take place from foreign exchange, which is needed for imported goods. By developing countries primarily agricultural products, usually cash Crops, become and raw materials produces and implemented. A cause for this is the mercantilism from the colonial age, according to which raw materials from the developing countries and finished goods from the industrial nations are exported. Thus a mono structure of the export developed on the part of the developing countries. Due to sinking term OF trade, which describe the exchange ratio between in and exports, price fluctuations and sinking world prices as consequence of a saturation of the market with products of the developing countries, came the developing countries increasingly into a critical situation. This problem was intensified by substitution, increased recycling and strong competition under the world market offerer, since therefore the need and/or the prices of the raw materials continues to sink. Additionally industrialized countries try to protect their industry against the competition of cheaply produced goods from the developing countries by special tariffs and import restrictions. Economic blocs such as European Union, ASEAN, NAFTA and MERCOSUR develop increasingly over industrie and developing countries away. Within these alliances freely, outward protects itself it can be acted however by protectionism.

Foreign debt

The capital for the financing of investments cannot be applied by saving. Likewise the price increases cannot be covered with energy, food and finished products by rising receipts from exports, which leads to the fact that developing countries are dependent on Kapitalimporte. At the beginning of 70's years, during which oil crisis large money supplies became by the rising oil price invested of oil sheikh over the banks into developing countries, since a country was considered as safe debtors. High interest and bad investments led to a threateningly increasing foreign debt. In the 80's, when developing countries more interest on debts had to pay and debts back than them apply could, it came to the first countries, those as insolvent was explained (Mexico, 13 August 1982). Despite partial remission of debts, a complex of rising indebtedness and increasing credit needs developed, in order to be able to transact repayments of development assistance and interest payments. The repayment of the debts is possible only if the cost of living in the indebted countries is drastically increased, which predominantly meets arms and to still larger poverty and misery leads. An effective means around inflation and indebtedness to brake exists in shortening of public expenditures. Cancellation of necessary food imported goods or also imported goods of spare parts for machines, is to be gained means of the choice around foreign exchange for the debt service. From this follow a sinking desire to invest of companies, sinking productivity, unemployment and a neglect of the supply of the population. Data of the World Bank point out that the developing countries carry more back and interest payments out to the industrialized countries, when they receive at new credits and loans.

Vorallem sinking receipts from exports, rising interest, high oil prices, the high dollar rate, increasing inflation rates in the developing countries and uneconomic projects, make the indebtedness of the developing countries a continuous problem. In addition the high costs of infrastructure and prestige objects, as well as of the military armament, the rising import come by food, there the own agriculture were neglected and luxury imported goods for the wealthy social classes. Therefore many banks, because of the larger risk, limited the supply of the developing countries clearly by short term credits and the developing countries are forced their creditors for conversions of debts to be asked.

A uniform solution for all debtor countries does not exist, however generally more favorable world-economical basic conditions, like dismantling of the protectionism and opening of the markets, reductions of the rate of interest, to grant currency stability and the readiness the developing countries new credits. The developing countries may their profits by the debt service consume not let simultaneous, but must growth-promoting invest. Again growth dynamics must be achieved, be arisen from the own forces and initiatives.

1996 decided the World Bank and the International Monetary Fund (IWF) an initiative for the reduction of the burden of debts of the most highly indebted countries. 1999 expanded of the G7-Gruppe this initiative for disencumberment further HIPC initiative. A debt service decree is to be granted to 36 HIPC countries (heavily indepted poor countries) of altogether 71 billion US Dollar. On average two thirds of their debts will issue to the countries - in it also individual bilateral remission of debts are contained of individual creditor countries. The disencumberment is however bound to different editions: economics and sociopolitical reforms and the use of the means to the June 2005 decided the Ministers of Finance of the G8-Staaten a large remission of debts, which paints to the countries qualified for the HIPC initiative additionally again up to 55 billion US Dollar commitments. Them all debts can with the World Bank, which International Monetary Fund and the African development bank will issue. A condition for it are strict criteria particularly in the range Good Governance. 18 countries, particularly in Africa south the Sahara, profit immediately from it - 40 billion US Dollar at commitments were issued to them. Nine further can itself in the next months still qualify. The remaining ten HIPC could still be added later.

See also

• Portal: Developing countries
• Agriculture in developing countries
• Industrialization of the developing countries
• New international economic system
• agreement

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