Abstract
This paper describes multiplier (magnifier) effects in the impact of growthof industrial countries on growth, exports and terms of trade of developing countries. The data are mainly derived from World Bank projections for the 1980s. This is supplemented by historical data on the effects of the slow-down in 1973–1980 compared with previous years, provided by the IMF. The overall multiplier effect on LDC growth has been prevented by compensatory action (mainly rapid expansion of commercial bank lending) but only at the cost of rapidly increasing debt burdens - a postponement rather than a solution of the problem.
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