High debt countries see shift in accumulation trend, grant aid crucial.
This article looks at why developing countries end up in debt and how aid and debt relief can help. The researchers found that initial debt is the main reason countries accumulate more debt, not their government type or outside factors. Poorer countries tend to get more aid in the form of grants rather than loans. Debt relief doesn't always lead to economic growth, but it does encourage investment in countries that are not heavily indebted.