A thesis presented by

reality of the arab debts and its future horizons within the contemporary international changes

A Thesis presented by

ahmed abbas abdulla al-muhimidi

To the Council of College of administration & economics /University of AL-Anbar a Part of the requirements of Master Degree in economy.

Supervised by

Assist. Prof.

Dr. Nazar Thiyab Assaf

1426 H

2005.A.D

The problem of indebtedness is considered one of the main problems from which the developing countries , including the Arab countries , suffer due to a gap in the local resources :e.i. savings are unable to

cover the required investment.

This problem increased in the last three decades of the past century to be at the top of the problems that these countries suffer from .

The foreign indebtedness is defined as an outer commitments of governmental debt including national governments or one of it’s attachments such as departments or Agents in addition to the past independent governmental.

The accumulation of the foreign debts of the indebted Arab countries led to clear marks on their economies . The average of these debts had been increased more than the average of the local production besides the great decrease in the local accumulations which enforce these countries to knock the door of the foreign debts in order to obtain the required sums to fill the gap of their balance of payments.

It had been concluded from this study that most of the Arab countries are still suffering from unsolved problem represented by the disability of the local resources to cover the requirements of the economical development . The effects of this problem had over come the economical aspects of these countries to the social and political aspects due to which the political decision of the indebted countries had been subjected to the control of the super power in addition to hindering the cultural and social efforts of these countries .

The sums that have paid in installments or interests, reduced the average of the foreign currency exports and that affected the ability of these countries to import their needs of goods and other services .

This requires to create a United Financing Arab Corporation able to provide the financial resources from the petroleum countries and directing it centrally by an economical way forwards the disable countries in order to achieve stable Arab development besides some of the Arab countries will buy the Arab debts from their foreign origins in order to face the problem of the foreign indebtedness and scheduling the debts and to limit the short-term foreign loans of high benefits.