Data response (2)
Read the article $4.3 billion debt hurdle in face of 2011/12 budget and then answer the questions below.
Question 1
Distinguish between 'internal' and 'external' debt.
Question 2
Using examples from the article and from your own knowledge, examine the problems associated with a developing country having a significant amount of external debt.
Question 3
Explain how inflation affects the external debt of a country such as Uganda.
Question 4
Evaluate the policies that a developing country, such as Zambia, can use to counter the effects of inflation.