POLB90H3 : POLB90 Week10 Lecture .docx
Document Summary
Debt crisis in 1989, mexico announced that it would not be able to make the interest demand in foreign debt causing international debt to place a moratorium in new landing to global south it to recall existing loans. 74% of debt from latin america, 8 us banks. Era of industrialization growth for much of the developing world. (isi) 1973 oil crisis because opec (organization of petroleum exporting. Sharp increase in oil price that coincides with a decline in primary commodity prices left much the global south. Opec -> petrodollars (oil income)-> european banks and u. s. Debt service ratio the amount of export earnings needed it to meet annual interest and principal payment on the country external debts. (30- Overseas landing and development assistance to developing countries declines. Primary commodity up prices to continues declined. Brody plans (1989) sought permanent reduction in loans principals and existing debt serving obligation exchanging service a bill for the implementation of market oriented economic reforms.
