Public and Private Net Savings in Developing Countries: SomeEmpirical Tests for the Period 1972-88 (Distinguishedl Lecture)

The severe shocks that rocked the world economy in the 1970sand the ensuing efforts to adjust and to renew economic growth have hada profound effect on the economic literature. Especially the externaland public debt problems which reached critical dimensions in manycountries attracted much attention. Thus, in the field of macroeconomicsfinancial issues have gained more prominence over the last two decades.Studies relating to the fiscal deficit have been particularly numerous.The critical size of national public debts, the contribution of thepublic debt to external debt, the reduced confidence in the state as theguide in socioeconomic development and the role of fiscal policy inadjustment processes are among the main reasons for this increasedinterest.