without paternalism orulterior motives, reflecting ourresolve fordecisive action. Oneofthemosturgentproblems ofthisdecadestemsfromthelackofasystem forfinancing development andtheweaKening oftheinstitutions thatwerecreated forthatpurpose. 1refertotheforeign debtofdeveloping countries which threatens toparalyse economic growth, erodetheprocessofdemocratization, upset SOCialpeaceanddestabilize theinternational financial system.Itisaproblem thatinvolves theentireinternational community. Theresponsibility liesequally withthedebtorcountries,thecreditorCOuntries,privatebankingand international financial institutions. Allofthemtherefore mustberesponsible foritssolution~ andtotrytoevadethisresponsibility may,inouropinion, bea mistakeofunforeseeable dimensions. Toprevent thedebtproblem fromendinginacrisisthedebtorcountries are makingsignificant efforts requiring sacrifices onthepartoftheirpopulations andadvancing adjustment programmes thathavehelpedtoimprove theirbalanceof payments. Butsuchefforts cannotbesustained inthemediumterm.Itisobviouscollective nature. Thusitisobvious thatonlythesustained economic growthofthedebtor Unfortunately, theserious, calmbehaviour ofthedebtorcountries hasnot(President Lusinchi)A/40/pV'.14 8" relieve theburdenimplied bydebtservicing andtoavoidworsening theeconomicindespensable andurgentthatweseekasolution ofthisproblem inordertoinflation, ashasbeenthepractice ininternational financial markets. Itis situation'of thedeveloping countries.andhighstandards ofliVing, while ou~countries, onthecontrary, arebeing Whatsoever forkeepingrealinterest ratesseveral pointsabovetherateofFromthestandpoint ofinternation~l solidarity thereisnojustificationTheindustrialized countries mustparticipate actively withthedebtor toeliminate existing deficits andhonourourcommitments.particular, inestablishing protective mech~nisms tocopewiththehighinterestthisproblem hasbeentheabsurdity ofturning thedeveloping countries intonet ratesthatarekepthighsoastoattract thecapital necessary tofinancedeficitsinvolved. Wehavereached thpointwheretheonlymethodproposed fort'esolving obliged toadoptsevereadjustment measures atthecostofgreatsacrifice inorderlevelhasbeentheimposition ofpolicies thatstimulate recession andunemployment.capitalexportersandtheonlymethodofactionrecommended attheinternationalobtained asatisfactory response fromtheothercountries andinstitutions countries inseeking moreconclusive solutions tothedebtproblem and,inthatthedebtproblem cannotbesolvedattheexpense ofthewell-being ofthe peopleandthataresponsible HeadofStatecanhardlyendanger thefutureofhis isevident thateachcountry's conductiscoloured bydifferent realities, butthe debtproblem initsdimensions andbasiccharacteristics isofaninescapablenationbycarrying sacrifices toanextreme inordertosettleitscommitments. ItJVM/4 countries willenablethemtocomplywiththeirforeign obligations.---------~~~~~~~~- A/40/PV.l4 9-10 (President Lusinchi) Thelackofwilltofindshared solu~ions increases thepossibility thatwe shallintheendfaceacrisis. Thosewhofeelthatthedangerhasbeenaverted by thefactthatthemostdifficult cons~uences oftheproblem havebeenpostponed andhavenotyetaffected international financial centres aremistaken. Thedanger remains. Theadvances madetodatehaveonlycontributed topreventing a confrontation andtokeeping openthepossibility ofdialogue. If,however, this dialogue doesnottakeplace,ifitdoesnotfindsubstantive solutions, ifitdoes notcoverallthecountries involved, theseadvances willhavebeenillusory. TheLatinAmerican countries, through theCartagena Consensus, haveproposed a dialogue atthegovernmental levelaimedatfinding realandlasting solutions to thedebtproblem. Unfortunately, wemetwithnoresponse. Thisleadsustothe paradoxical situation inwhichthemorethestability oftheinternational financial systemdepends onusthemoredifficult itismadeforustofind counterparts wi~whomtoseekformulas thatwillenableustomaintain that stability.commitments.Wearedetermined thattheseformulas shallbeofamultilateral naturef but ofourpeoples toremainatthemercyofanuncertain international economy; nor(President Lusinchi)A/40/PV..-14 11 Howev~r greatLatinAmerica's efforts, itsproblems cannotbeovercome without arevitalization ofitseconomies, andthisrequires theorderly andsustaineddevelopment-financing systemandthewilltoregularize international financialtocreateinternational economic conditions thatwillnotendanger agreements thisrespect, weconsider itnecessary toestablish, through dialogue, amutuallythatthisshouldbeauniversal standard forrefinancing agreements. Moreover, experience ofnegotiations hastaughtusthataneffortisnecessaryVenezuela, likeotherdebtorcountries, hasstatedandgivenproofofitsfirm
**Analysis**
The text discusses the debt problem of developing countries and its impact on the international financial system, highlighting the need for a solution that involves collective responsibility and action. The text emphasizes the importance of sustainable economic growth, fair debt relief, and international cooperation to address the debt crisis. It also touches on the need for a universal standard for refinancing agreements and the importance of dialogue and negotiations to find mutually beneficial solutions.

**Category**
Economic development, International trade