foreign debt  The part of a country's total debt that is owed to foreign creditors. Government, businesses, or individuals can owe the debt. Creditors can be foreign banks, governments, or financial institutions.

debt forgiveness  The cancellation of all or part of a debt. Once forgiven, a debt does not have to be repaid.

capital flow  The movement of money into and out of a country through foreign investment and other financial activities.

economic development  The process by which a country makes economic progress and raises its standard of living. Development includes improvements in agriculture and industry, the building of roads and other economic infrastructure, and investments in human capital.

developed country  A wealthy, industrialized country in which the majority of people have more than enough in come to meet their basic needs and maintain a high standard of living.

developing country  A low- to medium-income country in which most people have less access to goods and services than the average person in a developed country.

least developed country  A country that suffers from severe poverty and low standards of living.

extreme poverty  A condition in which people are too poor to meet basic survival needs, including food. shelter. and clothing.