CRI210H1 Lecture Notes - Lecture 1: Structural Adjustment, Neoliberalism, The Roots
5 Feb 2018
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Document Summary
The global debt crisis, neo-liberal reforms and their c. The roots run back to 1973-1974 when oil prices soared triggering an unprecedented expansion in international lending mainly commercial lending or recycled petro dollars. Oil crisis saw sharp increases in oil prices. Oil importing countries ran up huge import bills and, in turn, oil - exporting countries had a huge build up of deposits in international banking system. The debt crisis of the late 1970s and early 1980s sparked the widespread use of neo-liber policies promoted by the international monetary fund and the world bank. In august 1982, the debt crisis was recognized when mexico announced a moratorium on its foreign loan repayments. Brazil and other countries announced that they were unable to meet servicing deadlines. Interest rates shot up and at the same time, global demand exports from developin countries fell.
