First published in 1979, this study focuses upon two of the major economic problems faced by developing countries: massive foreign debts and the shortage of foreign funds offered on concessional terms for development purposes. The relationship between the two is highlighted in the effect that debt accumulation has on ministering the increase of debt service payments, and to lessen resources for development purposes.The study argues that not only is the impact and implications of these two problems more or less identical for debtor and creditor countries, but that it is the inappropriate techniques of rescheduling and refinancing that have failed to solve the problems of developing countries.The author advances an integrated proposal for using debt relief as an end in itself, - to reduce the level of indebtedness, and as a means to a further end, - to provide additional funds for development.