UN General Assembly
1984

36. The central problem in the world economy today is the international debt situation of the developing countries. Many countries are just unable to repay their debts in the face of high interest rates and reduced export earnings, the only source from which debts can be serviced internationally. Massive debt rescheduling is also increasing accumulated debts. International lending, once perceived as a principal instrument for the stimulation of economic growth, has become today the factor causing a reverse flow of capital and retarding the growth prospects of developing countries. 37. As we see it, there can be no lasting world economic recovery without a solution to the international debt problem. And the problem of debt cannot be resolved without structural adjustments for a more balanced financial and monetary system and the revival of world trade.