Debts, Defaulters, and Development
Strange, Susan. “Debts, Defaulters, and Development.” International Affairs 43, no. 3 (1967): 516-529.
Strange suggests that problems of national debt default have not been solved, merely suppressed by the expansion of credit provision. Developing states dependence on ‘supplier credit’, and frequent rescheduling of other debts will lead to eventual wide-spread default unless action is taken. She suggests that: principles governing international loans should be established; these ‘rules’ should be applied through aid-agencies and other international bodies; technical assistance to finance ministries should be available from multilateral institutions (the World Bank, possibly) to ensure states understand their fiscal position and their options. Strange argues that these measures are necessary to forestall a return to the nineteenth century policies of forced intervention, or economic ostracisation of developing states. Strange identifies the centrality of finance to international relations - a central theme of all her subsequent work.
Keywords: International Institutions; Money and Finance