POLI 445 Lecture Notes - Lecture 14: Structural Adjustment, Government Debt, Macroeconomics
2 Jan 2020
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Before solutions were short term/band-aids to cover the problem. Sap started early on; sap long term solution that imf and world bank would promote. He is going to apply a really conservative criticism. World bank"s aim: poverty reduction and wealth distribution. We have to look at responses to sovereign debt; rather then poverty reduction/wealth distribution etc: even if we look at that: imf and world bank do not worked well; sap not worked well. Short term lending (when debt was long-term) It gave out loans to countries supposed to be in bop deficit, 3-6 month duration. When baker plan signed; imf have to be there to give approval to recovery plans countries want to initiate so that private banks can continue its lending. Imf looked at the problem, and execute the problem in macroeconomic ways; but the loans durations are slow.
