INTD 200 Lecture Notes - Lecture 7: State-Owned Enterprise, Neoliberalism, Poverty Reduction
16 Dec 2012
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Document Summary
1970s: era of surplus capital and loan pushing. End of 70s: economic crisis: imposed neoliberal policies. Early 80s: increased interest rates: movement of south to north, imposed by ragan, too high for these countries to pay take loans to pay interest on loans they had taken. 1982: debt crisis in south, mexico, brazil, argentina, poland default on loan payments: worried about a massive breakdown of the banking system. Restructuring of debt payments, borrowing/lending of more money to pay debt interest: allowed a longer repayment time, more money loaned and borrowed, interest charged on interest, movement of capital from the south to the north. Saps became an requirement to get loans from the imf and world bank. Countries needed the money so there was a rapid up taking of these policies. These policies were very unpopular with local populations. Environmental impacts: marginal land brought into production, increased logging to generate export earnings. Issue of sovereignty/conditionality: good governance, poverty reduction strategies.
