Why does Lua default to global variables?

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My favourite language these days is Lua. I have only one issue with it, why on earth is its default behaviour that variables in functions are global? In the similar language Icon there is a keyword "global" that is used when one really wants to use a global instead of the natural behaviour to default to local (I was bitten by this again five minutes ago). I would feel better about this if somebody could tell me the rational behind it (like the scoping difficulties that I know cause the absence of a "continue" keyword in Lua).

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