I am not an economist so my question would be directed to those who understand economics and government administration. If a country is capable of paying off her debts, why don't they? Obviously , these developed countries I believe are capable of offsetting their debts because they even render aids to other developing nations.
Secondly, are there any benefits, economic or otherwise of a country being in debt?
It's like with an individual for example, having $1k as the only money in his name while owing a friend a debt of $800, in economics you're not supposed to pay the $800 debt at one payment just because you have $1k with you.
For the fact that you have other responsibilities and demands to meet you need to pay in instalments so you don't put yourself at a disadvantage to running into a new debt immediately, it makes no sense at all. So for the avoidance of such you need to consider the impact economically in paying your debt of $800 at ones with only $1k in your purse.