University of Wales - Aberystwyth

This thesis examines the economics of international lending and borrowing, and explores the effects of economic crises on the world system resulting in loan defaults and debt rescheduling. In particular, the thesis examines the growth of the debt crisis in the 1980's and how developing countries have had to cope with the burden of debt repayments. The Western use of interest rates in borrowing and lending is contrasted with the Islamic system on an ethical level.