economy and their own long-run interest. surveillance can only be effective in a spirit of co-operation' rdhich is difficult in a world that is much more integrated economically than it lrants to be politically. 50. It should also be recognized that part of the difficulty in surveillance stems from genuine ignorance, uncertainty and the differing vielrs tha! prevail nith regard to the roots of slagflation in industrial economies, the nature of ttaqe and price formation and lhe lole of various rigi.dities that originate partly in Dolitical decisions. D. The debt problem 51. tlothinq has alerted the world community to the precariousness of che internaeional monetary and fi.nancial siEuation so much as lhe rlsk of a debt crlsis in the form of a widespread inability and refusal by developing countries to pay their creditors, a development that would bring serious disarray to the international financial system. An international debt crisis is not likely in this sense. Ho$ever, in many developing countries the debt crisis is already a dominant fact of life. The steep rise in interest obligations and the drop in nen bank lending have produced severe economic cut-backs in indebted countries. 52. According to world Bank eslimates, the total external liabiLities of developing countries rose from $610 billion in 1980 to $895 biltion at the end of 1984. of the latter amount, $142 bilLion is shor!-tern debt of less than one yearrs malurity, abouC $35 billion is debt to the IMF and the remaining $71? biLlion is medium- and long-tern debt. Private Ienders held $472 billion of the medium-term and long-term debt and pubric lenders the remaining $245 bilLion' 53. The combined external debt of 16 rnajor borrowers accounted for $518 billioh' or 58 per cent of the totat. Eiqht of these countries are in Latin America and had
**Analysis**
The text primarily discusses the international debt crisis and its impact on developing countries, as well as the challenges of surveillance and cooperation in the global economy. It touches on the topics of economic integration, interest rates, and financial systems. Given the focus on international finance, debt, and economic issues, it is likely that the text falls under one of the economic-related categories.

**Category**
Economic development, International trade