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Abstract
This paper reviews some general features of Third World debt. It then considers the relationship between this and energy policy; much debt is due to investment in and maintenance of electricity generating and transmitting systems. An appreciable proportion of bilateral and multilateral aid is directed towards energy expansion, and reasons are given why this is inappropriate. An alternative energy strategy is advocated based on renewable energy resources, decentralized and locally operated and improved traditional technology, with energy‐conserving measures such as improved cooking stoves.