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Why do Developing governments lend money?

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Why do Developing governments lend money?

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  1. to earn the interest.  If they do not have enough industries to invest in a manner that produces income, they seek to lend money and earn interest instead of just spending it all on potential future revenue that may or may not materialize.  Its basically for the same reason that a young couple just starting out in life who inherit a large farm, might lease some of the land, until they grow their family or hire enough people to farm all the land themselves.   A developing country might sell certain assets, perhaps some natural resources, mineral rights, whatever they have, and spend some of the money to diversify their industries and create jobs, but invest some through lending, to get some income coming in with which to help fund various social programs.

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