New Delhi, June 17 -- Developing countries are being forced to pay a steep financial penalty simply because they are developing economies, with excessive borrowing costs draining hundreds of billions of dollars that could otherwise be invested in schools, hospitals, infrastructure, and clean energy, according to a new report released by the United Nations Conference on Trade and Development (UNCTAD) here on Wednesday.
The report, "Financing Development: External Flows of Financial Capital to Developing Countries and Their Cost," paints a troubling picture of a global financial system in which poorer nations face persistently higher borrowing costs than advanced economies, leaving them trapped in a cycle of rising debt-servicing obligations...