a joint debt of $330 billion. The other eight' of vthich six are in Asia' had a tofal external debt of $188 billion. The reftaining nearty 100 developinq countries bad a totaL extelnal debt of $377 billion. 54. The deb! problem oighc thus appear to involve only a limited number of developing countries, but thls conclusion would be premature. It is natural that the large debt problems are found in large countries having relatively high incomes' and it is also natural that the fate of these countries should be of special concern to the financial community. It should not be forgotlen, hovrever 'that many smaller and weaker countries, vrhose debts are no! to private banks bul to Governments and rdbose problens do not provoke anxiety in financiaL circles, are none the less experiencing serious ba la nce-of-payments problens of which their debt servi,ce is no snalL part.A/40 /7 08 Engli sh Page l-4 55. The emergence of generalized debt-servicinq difficulcies in developingcountries has been due to reduced export volunes, increased interest rates anddeteriorating terms of trade. The global recession has undermined export volumesand i{eakened the export prices of primary commodities. Hiqh incerest rates and theovervaluation of the dolrar have contributed to the weakeni.ng of prices by reducing demand for stocks and by depressinq the dollar prices of most commodities. This,and the fact that ftost of the debt is denomlnated in dollars and subject tovariable incerest clauses, has reduced developing countriesr capacity to servicedebt.
**Analysis**
The text discusses the debt problems faced by developing countries, highlighting the impact of global recession, interest rates, and trade terms on their ability to service their debt. The focus is on the economic implications of debt servicing, rather than any specific sector or industry. The text also touches on the global economic context, including the value of the dollar and the prices of primary commodities.

**Category**
International trade, Economic development