The resulting foreign debt leads to permanent currency depreciation by host countries. The oligarchs that run most countries are in favor of foreign debt. First, the more money governments borrow, the less they need to tax their own real estate and large rent-taking corporations. Second, the currency depreciation that results from repaying foreign debt has the effect of lowering the wages of labor. Let me explain why.
Capital equipment has the same price throughout the world.
It is dollarized. Fuels and raw materials have the same worldwide dollar price. Computers and transport equipment. Debt financing also is dollarized. All that is left to be affected by currency depreciation is labor's wages, and land rents.