The so-called external debt crisis involves those developing countries with a chronic imbalance in their external sector or with fundamental shortcomings in their system for generating productive capital. Besides the social and political problems caused directly or indirectly by the external debt, so too a vicious circle of domestic economic problems is generated including inflation, insufficiency of internal savings for investment in productive facilities and resulting obsolesrence of these facilities. The set of financial demands which capital-exporting creditor countries are able to impose on the chronic debtors in the developing world constitute a modern, efficient and insidious tool for domination and dependency.