GEOG 130 Lecture Notes - Lecture 12: Individualism, World-Systems Theory, Global Value Chain
Document Summary
Write a paragraph on how the debt crisis emerged. From the 80s onward, as the debt crisis got worse, developing countries went to the imf and the world bank for loans to pay off their debts. To fix this crisis, imf and the world bank made loans as long as countries had a debt management plan. States were required to look outward for development in favor of export oriented production. They were to look globally for growth. The debt crisis was caused in 1973 when the price of gas increased during the oil crisis. These plans are called structural adjustment programs (saps). Neoliberalism- free market economies will promote more economic growth. It is called neoliberalism because it takes old liberal economics and brings them into a new age. States were required to through the sap. Fix overspending in the budget by reducing spending on government provided services and programs. Privatization of these state services and programs.
