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Each actor in the triad can leverage this internal finance by taking on external debt.
Almost one-third of Ghana's budget is spent on external debt servicing.
To give Iraq's economy a chance to recover, Mr. Barton and Ms. Crocker recommend a five-year moratorium on external debt, along the lines that the Paris Club creditors agreed to for Yugoslavia in 2001.
Antoni Castells, Catalonia's finance minister, described the sale as "a big success," whose focus on local investors should be welcomed because "it's good to reduce our dependency on external debt".
Economic mismanagement during the early 2000s led to a near default on external debt repayment obligations, which was narrowly averted by strict adherence to an International Monetary Fund stabilization program.
In a recent investor letter, Ray Dalio of Bridgewater Associates, the largest hedge fund in the world, zeroed in on Spain as the most vulnerable of the peripheral economies in Europe, emphasizing the government's reliance on external debt to fund the biggest real estate boom in the country's history.
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Debt-servicing, or interest and principal payments, in foreign currency on mountains of external debt make it very difficult for developing countries to invest sufficiently in social development that is one essential basis for economic growth.
The document said, "We ask you to remember those corners of the world which receive no media coverage and where our brothers and sisters are dying from famine and lack of medicine," and again pressed rich countries to ease the burden of external debt on poorer ones.
To Richard Segal, a credit analyst at the investment bank Jefferies in London, it is the hidden buildup of external debt on the part of Turkish banks and companies that is most worrying.
This paper investigates the effect of organizational capital, typified by various management practices within a firm, on the cost of external debt financing.
South Korea has operated on higher levels of external debt than has Japan or China, thus raising concerns that the country will be harder-hit by the global credit crisis.
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