Abstract This paper argues that the globaldebtcrisis represents a means by which the developed world reasserts its former colonial control over the newly-independent nations of the developing world. The author points out that, by loaning these countries money, often to serve the interests of corrupt local elites, debt accumulates to the point that these countries are barely able to meet their interest charges on the debt. The paper relates that Nigeria represents an example of what political scientists term a "rentier state". The author contends that, in Nigeria, an oil-rich country in Africa, its debt represents a means by which the natural resources and wealth of the developing world can be brought under the effective control of the developed world. The paper concludes that debt can be seen as an instrument of neo-colonial domination and control that continues into the 21st century.
Table of Contents:
Introduction
The Collapse of Colonialism and the Creation of the "Third World"
Developing World Debt Becomes Critical
The DebtCrisis in Nigeria: Internal and External Factors
Conclusion
From the Paper "However, in all of these nations there existed the understandable desire to develop as quickly as possible. One of the easiest means to achieve this end was to borrow from lenders in the developed world to fund development schemes. The nations of what was termed the "Third World" borrowed heavily in the post-independence era, and when the nations of the developed world slowed down their economies in the 1980s to combat inflation this severely damaged the economies of Third World nations that depended upon commodity exports for foreign exchange. Without this revenue, they were often unable to meet their debt payments."
Abstract Three times in the past two decades we have seen an economic crisis hit developing countries. These were the debtcrisis in the 1980s, the Tequila Crisis in 1994-1995, and the Asian Crisis that started in 1997. Each of these had impacts that affected other countries as well. This paper looks at the ways in which such crises start and possible means to determine which countries are susceptible to them. The ways in which this type of crisis spreads is also examined, since it appears that the same methods of determining whether a country might be the source of such a problem can also show if a country is open to contagion in the event a crisis does occur in another country. The paper begins by looking at some of the events involved in the three crises discussed. Only the latest crisis-in Asia-is discussed in detail. The two prevailing hypotheses to explain these events are then discussed with their shortcomings. One interpretation is that the governments are to blame. This outlook claims that the latest crisis-in Asia-is the result of weak government regulations and strong government guarantees. This also leads straight into the moral hazard theory. The other side focuses on economics and claims that fragile markets in the region can allow a crisis in one market to trigger a panic and financial collapse in others. In the case of the Asian crisis this is traced back to Thailand. It is shown that by putting these two hypotheses together, rather than trying to keep them mutually exclusive, a more cohesive picture-and hypothesis-can be created. Information concerning the three crises examined is shown to be more readily explained by using the approaches together rather than separately.
Paper Outline:
Introduction
A Brief Look at Three Debt Crises
A Look at Prevailing Theories and Problems with Them
Tying the Two Approaches Together
Contagion
Conclusion and Comments
Works Cited
From the Paper "Financial system reform is another area in which the realms of government and economics are clearly linked. Such reforms are virtually always the result of government action and not due to the efforts of business and industry. In fact, these reforms are often done despite the desires of the various sectors of commerce. The IMF again gives us striking examples of this. The conditions the IMF places on loans frequently require that a government take actions that will affect the economy. That is, in fact, the rationale behind the conditions."
This paper examines the real reasons behind the debtcrisis faced by developing countries, focusing on the structural reasons for their continuing debt before turning to possible solutions.
Abstract Reasons for international debt are discussed with examples brought from Mexico and Brazil, oil exporters and oil importers; debt rescheduling; debt relief and first-world aid; the International Monetary Fund and the affect the IMF has had on poor countries. The two major methods of international reserve creation: the mining of gold and the acquisition of reserves in the form of key currencies are discussed along with their problems. Recent structural adjustment and debt relief are also examined, as well as the inability of poorer countries to pay their scheduled debt service and the Heavily Indebted Poor Countries Initiative and its problems. This leads to a discussion of macro-economic adjustment.
From the Paper "The current climate of recession has highlighted the reasons for raising the calls for poor country debt relief. It is difficult to believe claims made by creditors that they cannot afford further debt relief. Canceling effectively unpayable debts owed by the poorest countries may turn out to be a sensible policy for all creditors. As well as the strong moral argument for debt relief, there could be sound financial grounds for doing so to stimulate the global economy and promote growth."
Abstract This paper focuses on the general topic of the United States of America's national debtcrisis. The first part of the paper provides insights into the causes and affects of the debt and identifies some large and small companies that are most affected. The second part of the paper discusses the risks and valuations of companies and instruments, as well as risk and valuation methodologies that have been developed with respect to the debt situation. The focus of these methodologies is related to the debt market, investment banking, and the secondary mortgage market, valuing the risks and returns of the companies and instruments involved. The paper presents an extensive discussion regarding methods of valuation.
From the Paper "There have been many efforts by the governmental factions to try to control the problem of debt accumulation. For example, the Balanced Budget Act of 1997 was directed on our nation's healthcare delivery system and was designed to balance the overall federal budget. Because of the aging population, Medicare and the cost associated to healthcare in general, our nation's national debt crisis needed these attempts to right the ship. Our debt situation was so severe that the Balanced Budget Act of 1997 was supposed to be one of the most significant changes to the nation's Medicare program since its commencement. "Certainly, the president and Congress intended for the BBA to dramatically alter Medicare reimbursements. The Congressional Budget Office (CBO) originally estimated the bill would reduce Medicare spending by $113 billion over five years, thereby extending the viability of the Medicare Part A trust fund by 10 years and bringing the budget into balance by 2002." (McKeon, 2004) "
Abstract The paper looks at the debtcrisis in Argentina that helped plunge the nation into a financial crisis in 2001. The paper argues that much of the blame should be directed towards the Argentine governments' policies of the 1980s and early years of this decade. The paper also contends that the IMF (International Monetary Fund) should be criticized but stresses that both parties share the blame.
From the Paper "The debt crisis which wracked many developing countries in the early 1980s (and thereafter) came about because of overly-extravagant domestic policies and exorbitant government spending - at least according to a United States Department of State dispatch from 1994. In any case, the developing nations - which obviously did not have huge tax bases or swollen coffers like their confreres in the developed west - were confronted with huge budget deficits and with overvalued exchange rates. According to the US State Department, the developing world (or at least many of its constituent nations) relied on short-term, variable rate loans to get them through the fiscal crises of the period - but those policies made them susceptible to the depredations brought about rising interest rates."
Abstract This paper discusses Mexico's debtcrisis of the 1980s. Mexico announced in August 1982 that it was unable to repay the $80 billion in loans that it owed to several Western governments and international financial institutions. This was when the IMF and the World Bank were forced to step in so the country could be pulled out of its financial problems.
Abstract This paper discusses the fact that although it is universally acknowledged that there is a global financial crisis, many companies have been limited in their reaction to current economic developments. The writer explains that the majority of efforts to deal with the impact of the crisis have been directed to stabilize finance and banking. The UK retail market has taken a major hit, and the writer shows how Tesco has reacted by offering better product deals and customer loyalty benefits. However, the company persisted in its expansion efforts, which may prove fiscally unfeasible as the crisis is likely to continue and affect all industries severely. The writer describes how marketers have had to rethink their marketing strategies and concludes that the challenge may be to develop market contractions as the crisis deepens.
Outline:
Background
Impact to UK Retailing
Case in Point: Tesco
Analysis
Conclusion
From the Paper " In the UK, one of the hardest hit has been retail market industry. Early speculations to the effect of the crisis to the UK retail industry intimated the high probability of price wars and shifting of market power to buyers who will be highly reluctant to spend for anything other than the most basic needs. It also raised concerns that the situation will further highlight issues raised against retailers, particularly industry leaders like Tesco, Asda and Marks & Spencer, regarding fair trade practices (Adams & Raisborough, 2008; Coe & Wrigley, 2007). As early as September 2008 when the Crisis was still being speculated on, many industry leaders sought to dispel the public concern to discourage speculation and depreciation of spending. However, reviews of 2008 performance have shown that many retail companies are reporting significant losses which are expected to continue in 2009."
Abstract Brazilian economic development has been characterized by a series of boom and bust periods with little to be said in terms of sustainable development. Because of this, governments throughout the latter half of the 20th century have made efforts to guide development via economic diversity through forced industrialization. In relative terms, poverty inequality, foreign debt and inflation remain staggering. As an example, in 1995, Brazil's total outstanding foreign debt was 159 billion dollars. This has had significant repellant effects on foreign investment. During the Latin American Debtcrisis in 1995, the pressures that were placed on the Brazilian economy could not be sustained. With an economy that was just starting to really grow, it could not repay the debts that it had accumulated during this crisis period. Like a bubble, the economy burst and Brazil continues to suffer the effects of a high reliance on foreign capital. This paper will look at the record of Brazilian economic development in terms of these and other important indicators.
Abstract The paper states the four principle causes for the financial crisis and explains them. The writer discusses the International Monetary Fund bailout of the Asian nations. The writer cites and explains suggestions of how to deal with the crisis, with emphasis on the suggestions of George Soros, as seen in his article "Avoiding a Breakdown", Financial Times, December 31, 1997. In conclusion, the paper states that it is important for the United States to support IMF activities even though they may be flawed, while reserving the right to revisit the issue at a later time. Table of Contents: Exchange Rate Misalignment Weak Financial Institutions Export Slowdown Moral Hazard Impact on the U.S. The International Monetary System
From the Paper "Conventional wisdom is that the events in Asia will reduce US growth by 0.5-1.0 percentage points relative to baseline over the next two years or so. Regardless of which statistics are employed, the impact will most assuredly be felt quite differently in different sectors of the economy. Import-competing sectors, such as light manufacturing, are likely to experience declines in output and employment. Obversely, non-traded, interest-sensitive sectors, such as, real estate and construction should benefit. One could think of this situation as similar to the mid-1980s when the term "Rust Belt" entered the popular lexicon, while the "Sunbelt" experienced a construction boom - though compared to the mid-1980s, the impact of the events in Asia will most likely be one half to one third as large. "The increase in trade deficits is likely to worsen trade tensions with countries such as South Korea. As the world's sole superpower, US leadership will be crucial to constructively resolve this crisis. Any move to close the US market in response to the rising deficits would set a horrible example for the rest of the world. Past experiences show clearly that there are links between trade and finance, and policy can have an enormous impact on outcomes."
Abstract This paper addresses the significance of debt with reference to three African countries namely, Angola, Benin and Liberia. It suggests possible ways in which these countries can solve their debt problems, including restructuring of debts.
Tags:debt, debtcrisis, sub saharan africa, default, world bank, debt repayment, economic reform, dictatorships, socialist, civil war
An analysis of Alison M. Jaggar's article, "Vulnerable Women and Neo-Liberal Globalization: Debt Burdens Undermine Women's Health in the Global South".
Abstract This paper discusses the plight of women under neo-liberal globalization as outlined by Alison M. Jaggar's article, "Vulnerable Women and Neo-Liberal Globalization: Debt Burdens Undermine Women's Health in the Global South". It provides a summary description of the article and then looks at the underlying determinants exacerbating the problem of women's health in the developing parts of the world. From there, the paper briefly explores the intermediate and proximate determinants of the global health issue.
Table of Contents:
Introduction
Summary Description of Global Health Issue
Underlying Determinants Explaining Why Global South Women Suffer under "Neo-Lib" Globalization Intermediate Determinants
Proximate Determinants of Why Global South Women Struggle from a Health Standpoint
Conclusion
From the Paper "At the proximate level, many women in the global south must deal with the day-to-day reality of being malnourished; to this state of affairs one must also add the poor sanitation and insufficient access to suitable drinking water that one commonly finds in impoverished lands. It is important to also realize that the absence of a meaningful education also means that many of these women are ignorant of what they should be putting into their bodies and what steps they should be taking to secure their own long-term vitality. Just to elaborate on this last point, eating disorders are not merely ubiquitous in developing lands, but have been shown to precipitate troubling health problems in their offspring, as well ("Nutrition and Reproduction in Women," 193-200). This phenomenon thus allows health maladies to be passed on from one generation of young women to the next generation of young women."
Abstract The paper discusses Global Communications' problematic relations with the union and its employees. The paper explains that should the situation not be solved in an amicable manner, the company is exposed to extreme risks, such as losing the confidence and the support of the employees and a negative media coverage attracting the anger of public opinion. The paper demonstrates how the company wishes to become a global player on the market of telecommunications and this involves the success of the present negotiations with the union. The paper shows how Global Communications must manage the ongoing changes through highly efficient communication, transforming the union into a partner and maintaining their proficient relations with the stockholders.
Outline:
Situation Analysis
Problem Statement
End-State Vision
Alternative Solutions
Analysis of Alternative Solutions
Risk Assessment and Mitigation Techniques
Optimal Solution
Implementation Plan
Evaluation of Results
Conclusion
From the Paper "The problem that Global Communications is faced with has several causes that have occurred during time and from various directions. The factors that have led to the appearance of the present problematic situation include general tendencies in the industry, as well as specific management philosophy elements. The main causes that have favored the existing problem include the general business globalization tendency, the intense development of the competition, the use of a distributive approach in relation with the union and the lack of a communication plan: "The logic, such as it is, that people will do as they are told and they don't need to be involved." (Bibb 2005)"
Abstract The paper discusses the primary explanations for the 1997 Asian currency crisis and highlights the implications of that crisis for the Asian economic paradigm.
Outline:
1985 - Plaza Accord (Appreciation of Yet Against Dollar)
Liberalization (Bank of Japan, Foreign Loans)
Kieretsu - Export of Capital
End of Bubble Economy
Foreign Banks Lending Expands
1988 -Gsp Status Ends (4 Tigers Economy)
1994 - China: Devaluation of Currency
1995-96 -Mini-Recession, Debt Problem, Accumulation
1996-97 - Debt/ Foreign Exchange, Reserve Rations Deteriorate
1997 July 2nd - Currency Crisis Expands From Thailand into East
Aian Countries
Explanation of the Asian Crisis
From the Paper "Following the Plaza Accord the Bank of Japan was characterized by liberalization and specifically in the area of foreign loans and as well the Bank of Thailand followed the same course in lending. Entrepreneurs in Asia are noted in the work of Wong entitled: "Lessons from the Asian Financial Crisis relates that Asians are known to place a general trust in their governments for enactment of economic policies which are sound and "their failure to sense the dangers of borrowing short in foreign currency and investing in long-term projects with earnings denominated in local currency was disastrous." (Wong, nd) In July 1997 Thailand "ran out of foreign reserves and devalued the baht which lost over 1/2 of its value. Having admitted the total loss of foreign reserves, there was a run on the bank of Thailand and this quickly spread to Malaysia, Indonesia, the Philippines, South Korea, Singapore and Taiwan. Attempts of the International Monetary Fund to assist these countries was not successful with too small a bailout package at too late of a date."
Abstract This paper is a discussion, and analysis of the fiscal crisis currently facing Argentina. The author details some of the causes of the current crisis, including defaulting on the debt, the devaluation of the country's peso and political corruption. The affects of the crisis on the region's stability, Argentina's trade relationships with Europe and the United States are also discussed. The turmoil within the country itself is discussed in detail, and the author also offers some creative solutions to the crisis.
From the Paper "Despite criticism from some nations like Spain, who is heavily affected by Argentina's crisis, the International Monetary Fund (IMF) has so far refused to give any more aid to the country. However, many people blame the IMF for loaning "massive" amounts to Argentina earlier in their crisis, along with conditions requiring the country to tighten its fiscal policies. Now, Argentina is unable to repay these outstanding loans. Some of the over 130 million in debt was defaulted on in December, and "Critics say the IMF-imposed reforms have failed to work because they don't take into account the local situation. They argue that the insistence on debt repayment is what's brought Argentina to the brink of collapse" (Editors)"
Abstract This paper examines and analyzes how the debtcrisis affects Third World countries. Through case studies of Mexico and Brazil, the paper discusses what brought about the debt crises in these two Third World nations and how those debt crises were dealt with, both by Mexico and Brazil and by the international community.
