What are the advantages of external borrowing in low developed countries?

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2026-03-04 13:40

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External borrowing can provide low-developed countries with essential capital to finance infrastructure projects, stimulate economic growth, and improve public services. It can also facilitate access to foreign expertise and technology, fostering development and innovation. Additionally, external loans can help stabilize economies during crises by providing immediate liquidity. However, it's crucial for these countries to manage debt sustainably to avoid long-term financial challenges.

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