0.?9 per cent of t{i!P (source: docuraeni A/48/258/Add.L-E/L983/82/Add ' 1 dated 19 September 1983 )..A/40/3r9 English Page 34 5. The mounting debt and debt_service buralen 77- Slnce the latter part of 1982, the alebt problem that ha3 confronted roanydeveloping countrles and haB been keeping the world on the brink of major flnancialcrises ha' 60 far been nanaged on a plecemeal and case-by-caae basls. The numerousmakeshift 'rescuen packaqes and adjuetnent prograones lnstltuted under the auspicesof IMF, in close collaboration l,ith the debtor and creditor countries, haveprovided temporary retief to the arebtor countries and have thua far averted majorftnancial cri6es. Recently, the debt problen appears to have aaauoed a newdimension- There hsa been better than expected pef,for0ance ln lmproving currentaccount balance posltlons ln eooe najor debtor countries through a combinatlon ofimPort contraction, and to so[e e*t"nt, ioport substitutlon in selected aectors ofthe econory, and a good shonlng in e*port grovth. expansion. A further favourabledevelopoent tles in the recent concrugion of debt reschedurlng arrangeoents forseveral oajor debtor countries, lnvolving rescheduting of muliiple ylars, with longmaturities, lorer spreads' and zero or low commisslon rates. thi6 inevltably leadsto the que6tion: Has the norld debt problem been oveicooe or 6imply furtherpogtponed by recent eventg? 78. It ha6 been auggested by some that with satlefactory OECD economlc gro,eth(say, at 3 per cent per year), a decline in lntereat rates, a likely ttepieciatingdollar and a osintenance of satiafactory export growth expanalon and inportsubstltutton, the debt probren of the developlog countries wllr ln tioe be able totake care of ltserf. others argue tbat thi8 vie$ overr.ooks important factors, suchas itnpor t contraction,. e:aport expansion and a reverae net resource transfer fronthe poorer to the richer nations, th6t render a continuatlon of these posltrvemeasurea unllkely to be austalned lndef,inltely.
**Analysis**
The text discusses the world debt problem, its implications, and the recent developments that may have alleviated the crisis. It highlights the debt servicing burden of developing countries, the temporary relief provided by rescue packages and adjustment programs, and the recent improvements in current account balances and debt restructuring arrangements. The text also raises questions about whether the debt problem has been overcome or simply postponed. The focus is on economic issues, specifically the debt problem and its potential solutions, making it a key topic in the field of economic development.

**Category**
Economic development, International trade