Public External Debt and Fmamein Social Infrastructure

It is trite knowledge that nations with robust factor endowments, particular capital are more strategically positioned to accomplish faster growth development than nations with low accumulation, since capital is the essential catalyst of production.1 Implicit in the relative importance of capital in the production and wealth of nations is the dichotomy in the growth and development of the Developed Market Countries (DEMs) and the Less Developed Countries (LDCs). Texts and literature in Development Economics are replete with views about the sources of the wealth of nations; but generally the convergence of opinions is that the essential ingredient for development is capital formation. The remarkable but unfavorable gap between the DMEs and LDCs is largely attributable to the considerable differences in capital accumulation.