External debt and development alternatives in Latin America

The document proposes that the origin of the foreign debt problem faced by developingcountries is found in the way international capital markets work. A mistaken optimisticview concerning financial market’s behaviour in the 70’s might extend for many yearssince debtor nations have adapted their econ...

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Detalhes bibliográficos
Autor: Ffrench-Davis, Ricardo
Tipo de documento: artigo
Estado:Versão publicada
Data de publicação:1985
País:Brasil
Recursos:EDITORA 34
Repositório:Revista de Economia Política
Idioma:português
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1857
Acesso em linha:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1857
Access Level:Acceso aberto
Palavra-chave:Foreign debt
debt crisis
international capital flows
Dívida externa
crise da dívida
fluxos internacionais de capitais
Descrição
Resumo:The document proposes that the origin of the foreign debt problem faced by developingcountries is found in the way international capital markets work. A mistaken optimisticview concerning financial market’s behaviour in the 70’s might extend for many yearssince debtor nations have adapted their economic structures to a great amount of externalfunds; on the contrary, a shortage of funds is expected in this decade’s last years. These tendencieswill deeply mark the social and economic performances of most countries in this region.Some of the main options that these nations will be forced to face are analysed in thistext. Apart from the imperative need to fight for a change in the way foreign debt has beenrenegotiated, it is also necessary to reorganize their external economic policies. This occurs through the intensification of economic cooperation among debtor nations and through initiatinga new phase of import’s substitution now being coordinated by means of import’sexpansion. Some facts responsible for a better capacity of handling and adjusting differentcountries according to the economic strategies they have adopted in the past and to the politicalsituation each country has to face are also demonstrated here. JEL Classification: F32; F34; H63.