Debt and Development Crises in Latin America

In the early 1980s widespread debt crises erupted simultaneously in most Latin American countries. The authors maintain that these debt and development crises have common origins and can only be successfully overcome by fundamental changes in the policies of developed countries, in the international financial system, in national development strategies and by radical rethinking of the debt problem. This study outlines the severity of the current crisis and provides an historical background. It focuses on the system of international financial intermediation and asks whether debtor developing countries can and will use their position to exert effective pressure for changes in the international financial system. These changes, it is hoped, will make it stronger, more stable, and more conducive to supporting the needs of developing countries. The political feasibility of alternative approaches is also discussed.