3rd world debt crisis

Question 1

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

Answer 1

25 to 523

Question 2

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

Answer 2

5 and debt

Question 3

… causes of the crisis

Answer 3

4

Question 4

cause 1 irresponsible….

Answer 4

lending and borrowing

Question 5

Cause 2 poor …

Answer 5

policy and politics

Question 6

Cause 3 … weakness : the long term tendency towards …

Answer 6

structural deficit

Question 7

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

Answer 7

oil, trade, global, rise

Question 8

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

Answer 8

private banks petro dollars

Question 9

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

Answer 9

currency, export, petroleum

Question 10

Cause 2: Money was often wasted through …

Answer 10

Dictators

Question 11

failed and wasteful … projects

Answer 11

development

Question 12

3 reasons for the waste of money:

Answer 12

Corruption
Oppression
Bureaucracy

Question 13

Cause 3: Specialising in low value primary …

Answer 13

production

Question 14

Imports …. manufactured goods and export cheap primary …

Answer 14

expensive, commodities

Question 15

Leads to a … trade …

Answer 15

structural, deficit

Question 16

Cause 4’s impacts (1): … deficit …

Answer 16

trade, increases

Question 17

So demand for oil is …

Answer 17

inelastic

Question 18

Impact 2: Demand for exports …

Answer 18

fell

Question 19

In a fixed system you cannot … your…

Answer 19

devalue, currency

Question 20

Raising … … to attract ‘… …’ may cause domestic … and recession, … and capital …

Answer 20

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

Question 21

Impact 3: Interest rates … in …

Answer 21

rise, west

Question 22

3rd world facing higher …

Answer 22

debt

Question 23

Meanwhile the 3rd world cannot generate … earnings

Answer 23

export

Question 24

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

Answer 24

expand, primary, commodities, prices

Question 25

Results Numbered…

Answer 25

4

Question 26

Countries had to …. to balance their economies

Answer 26

deflate

Question 27

Destroyed … and …

Answer 27

jobs, growth

Question 28

capital ..

Answer 28

flight

Question 29

Mexico defaults in … marking the beginning of the debt crisis

Answer 29

1982

Question 30

THE IMF NO. … main things

Answer 30

3

Question 31

… of … resort

Answer 31

lender last

Question 32

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

Answer 32

devaluation, currency, stabilisation, debt, budgets, debt

Question 33

… … results

Answer 33

domestic recession

Question 34

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

Answer 34

unemployment, lower, Budgets

Question 35

… things required for a structural Adjustment policy

Answer 35

4

Question 36

name those 4 things in a SAP

Answer 36

Open Market
Reducing size of the state
Deregulate the market
Privatisation

Question 37

Characteristics of a typical Structural Adjustment policy …

Answer 37

7

Question 38

Free trade: Freeing up trade … and joining the …

Answer 38

restrictions WTO

Question 39

free movement of … and currency …

Answer 39

money and convertability

Question 40

Allow all foreign … in and guarantee their …

Answer 40

investors, rights

Question 41

…. industries and …..

Answer 41

privatise utilities

Question 42

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

Answer 42

Eliminate, health, tuition, fees

Question 43

… regulations, red …., restrictions on ….

Answer 43

remove, tape, development

Question 44

Deregulate the … market/ reduce … provision applicable

Answer 44

labour, welfare

Question 45

benefits of these policies

Answer 45

Global financial stability
Western Banks
MNCs