The external debt problem of African countries is now recognized as a serious global economic issue. A number of papers on the subject, including studies by Humphreys and Underwood (1988), Mistry (1988), the United Nations (1988), Helleiner (1989), Greene (1989) and Lancaster (1989), have appeared during the past year. In addition, the G-7 countries have acknowledged the gravity of the problem through their decision at the June 1988 Toronto Summit, and the annual meetings of the International Monetary Fund (Fund) and the World Bank in September 1988, to provide more extensive debt relief for very-low-income countries (IMF, 2018). The severity of the African debt problem can be seen from sharp rise in aggregate debt during the past two decades. From an estimated US$8 billion in 1970, the total external debt of African countries (excluding arrears) has risen to an estimated US$174 billion at end-1987, including short-term debt estimated at US$12 billion. African countries issued a record $27.1 billion in 2018 alone, according to analysts at Renaissance Capital (RenCap, 2019).

a)Analyze the relationship of Africa's debt rise viz a viz development(4 marks)

b)Why is it that the debt burden in Africa is likely to amount to a crisis?(6 marks)

c)Analyze the approaches that are being adopted to overcome the problems (6 marks)

Describe the potential merits of African government's debt crisis management to the MNCs