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Poor countries set to lose as rich nations start raising rates

Cheap money borrowed from abroad can turn out to be a bad bet

| Sri Lanka
Sri Lankan rupee note: Sri Lanka is by no means the only country staring bankruptcy in the face.   © Reuters

Rupa Subramanya is a researcher and commentator. She is a distinguished fellow of the Asia Pacific Foundation of Canada and the co-author of "Indianomix: Making Sense of Modern India."

In August 1982, Mexico's finance minister, Jesus Silva Herzog, notified the U.S. Federal Reserve, the U.S. Treasury and the International Monetary Fund that his country was no longer able to service obligations on its enormous sovereign debt, owed mostly to American commercial banks.

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