The research expands the scope of the World System and Dependency theories that emphasize the deleterious effects of the extent of external debt held by multilateral institutions (Chase-Dunn, 1975; Sell and Kunitz, 1986-87; Meldrum, 1987; Harsch, 1989; Bradshaw and Huang, 1991; Bradshaw et al., 1993) and the structure of capital formation (Chase- Dunn 1975;Bornschier, Chase-Dunn, and Rubinson 1978; Bornschier and Chase-Dunn,1985; Timberlake and Kentor, 1983; Bradshaw, 1987; Walton and Ragin, 1990; Dixon and Boswell, 1996; Firebaugh, 1996) on the growth and development of Third World...