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close this bookEnergy after Rio - Prospects and Challenges - Executive Summary (UNDP, 1997, 38 p.)
close this folder2. Energy and Major Global Issues
close this folder2.3 Energy and the Economy
View the document(introduction...)
View the document2.3.1 Investment Requirements of Energy
View the document2.3.2 Foreign Exchange Impacts of Energy Imports

2.3.2 Foreign Exchange Impacts of Energy Imports

energy imports represent a significant fraction of foreign exchange earnings for many developing countries

The dependence on fossil fuels has created a wide variety of problems for non-oil producing developing countries, as well as for some industrialised countries and economies in transition. In over 30 countries energy imports exceed 10% of the value of all exports, a heavy burden on their balance of trade often leading to debt problems. In about 20 developing countries, payments for oil imports exceed payments for external debt servicing. This is an important aspect of the energy-foreign exchange nexus.