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Flashcards in 3rd world debt crisis Deck (45):
1

Between 1970 and 2002 the debts of the world’s poorest countries grew from $... billion to $... billion

25 to 523

2

... million people in sub Saharan Africa had died due to the ... the policies have lead to

5 and debt

3

... causes of the crisis

4

4

cause 1 irresponsible....

lending and borrowing

5

Cause 2 poor ...

policy and politics

6

Cause 3 ... weakness : the long term tendency towards ...

structural deficit

7

Cause 4: the ... crisis: ... deficit, ..... slump, interest rate ....

oil, trade, global, rise

8

Cause 1: Many ... .... found with a lot of ... ....

private banks petro dollars

9

Petro dollars are: a national unit of ... earned from the ... of p......

currency, export, petroleum

10

Cause 2: Money was often wasted through ...

Dictators

11

failed and wasteful ... projects

development

12

3 reasons for the waste of money:

Corruption
Oppression
Bureaucracy

13

Cause 3: Specialising in low value primary ...

production

14

Imports .... manufactured goods and export cheap primary ...

expensive, commodities

15

Leads to a ... trade ...

structural, deficit

16

Cause 4's impacts (1): ... deficit ...

trade, increases

17

So demand for oil is ...

inelastic

18

Impact 2: Demand for exports ...

fell

19

In a fixed system you cannot ... your...

devalue, currency

20

Raising ... ... to attract '... ...' may cause domestic ... and recession, ... and capital ...

interest, rates, hot, money, inflation, speculation, flight

21

Impact 3: Interest rates ... in ...

rise, west

22

3rd world facing higher ...

debt

23

Meanwhile the 3rd world cannot generate ... earnings

export

24

developing countries tried to ... exports of ... ... at the same time - resulting in decreasing ... for all

expand, primary, commodities, prices

25

Results Numbered...

4

26

Countries had to .... to balance their economies

deflate

27

Destroyed ... and ...

jobs, growth

28

capital ..

flight

29

Mexico defaults in ... marking the beginning of the debt crisis

1982

30

THE IMF NO. ... main things

3

31

... of ... resort

lender last

32

Stabilisation: .... of ..., financial ...., reschedule ... , balancing ... , lower ...

devaluation, currency, stabilisation, debt, budgets, debt

33

... ... results

domestic recession

34

from a domestic recession we get: ..., ... GDP, Lower ... and living standards

unemployment, lower, Budgets

35

... things required for a structural Adjustment policy

4

36

name those 4 things in a SAP

Open Market
Reducing size of the state
Deregulate the market
Privatisation

37

Characteristics of a typical Structural Adjustment policy ...

7

38

Free trade: Freeing up trade ... and joining the ...

restrictions WTO

39

free movement of ... and currency ...

money and convertability

40

Allow all foreign ... in and guarantee their ...

investors, rights

41

.... industries and .....

privatise utilities

42

... subsidies in health and ...: introducing/ raising .... ....

Eliminate, health, tuition, fees

43

... regulations, red ...., restrictions on ....

remove, tape, development

44

Deregulate the ... market/ reduce ... provision applicable

labour, welfare

45

benefits of these policies

Global financial stability
Western Banks
MNCs