After Mr Nyerere's resignation in 1985, his successor, Ali Hassan Mwinyi, attempted to raise productivity and attract foreign investment and loans by dismantling government control of the economy.

BBC: Tanzania profile

This month China freed interest rates on large foreign-currency loans, and the government recently announced that it would liberalise local-currency credit within three years.

ECONOMIST: The longer march

The influence of foreign religious organisations seems to be growing along with rising government loans from Gulf states.

ECONOMIST: Cambodia and Islamism

The dollar is now trading at BRL1.64, just days after the government raised the financial transaction taxes on foreign banks taking out loans overseas and bringing in dollars to the country.

FORBES: Brazil Fails to Save Dollar; Likely to Give up Trying

As a last resort, Menatep might prefer to let Yukos go bankrupt by defaulting on its foreign loans which would drag the case into international courts and give the government a royal headache rather than caving in to the Kremlin's strong-arm tactics.

ECONOMIST: The rule of law, Russian-style | The

Even if inflation remained moderate, many firms as well as the government would default on loans, since 90% of government debts and 80% of private-sector debts are in foreign currency.

ECONOMIST: Keeping the reform alive | The