The weight of debt drags down development process in countries around the world, as debt turns into a large burden on countries, especially developing ones, whether low or middle-income, due to their limited access to financing, and the high costs of borrowing in light of the decline in the value of their currency, which weakens their ability to confront global economic shocks.

More developing nations are at risk of failing on their external debt in spite of the efforts undertaken by international organizations to reduce such nations’ debt burdens. On the other hand, it is possible to argue that expectations for future economic growth regarding the potential contribution of developing nations to the global economy could present a chance to draw investments to these nations if their economies are stable and they are willing to pay back their debts.

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