A look at the effects of the crisis and the efforts to resolve them. Includes new loans, trade issues, capital, politics and protectionism.
Written in 1993; 1,125 words; 4 sources; $ 39.95
From the Paper:
"Since the early 1980s, Third World countries have begun experiencing an outbreak of debt crisis. This is described by some as a double-edged sword (Muscatelli and Vines, 1991), meaning that it both compromises the developing country and has a destabilizing effect on the world economy with the potential for increased defaults.
The debt-to-export ratio of 15 of the most highly indebted countries has continued to rise since 1980. This has been attributed to faulty domestic policies, which allowed foreign loans to be used to fund inefficient programs, coupled with low export growth and escalating global interest rates (Muscatelli and Vines, 1991). Additionally, world recessionary pressures continued to grow as non-oil commodity prices began to slip. According to Muscatelli and Vines (1991), "it seems likely that..."
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