POLS 1202 Lecture Notes - Lecture 16: United States House Committee On Oversight And Government Reform, Statism, Unequal Exchange
23 Jan 2018
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Document Summary
Foreign aid: an institution that provides this aid is the world bank with developed countries. Import substitution: a national economic strategy to build up a domestic economy by emphasizing the replacement of imports by domestically produced goods. Interest rates rose in the u. s; recession in advanced industrialized countries, and oil prices rose sharply in 1979: affected governments responded to these shocks by borrowing more. Debtor countries are required to implement macroeconomic stabilization programs. This was to eliminate large current account deficits. Managing debt crisis: stabilization was not sufficient so they set a policy of reforms known as structural adjustment, the goals of the programs: reshape the indebted economies by reducing the governments role. The economic crisis altered interest group politics: key members of is lost strength & faced higher cost for opposing reforms. The u. s initiated a new approach to the debt crisis in 1989.
