Chapter 7 - The Sociology of Sustainable Development

Like many other latin american nations ecuador is

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: o often forces governments to limit social and environmental services, thus decreasing funds for environmental protection.98 If nations respond to debt by reducing government expenditures, the poor and the IBRD loans and IDA credits, outstanding and disbursed, $ billion 50 40 30 20 10 As Su ia bSa ha ra n Af ric a So ut h C en tra lA Am si a er ic a an M d id C dl ar e ib Ea . st an d N .A fri ca La tin Eu ro pe an d Ea st As ia an d Pa ci fic 0 1997 1980 Use of IMF credit, outstanding and disbursed, $ billion 25 20 15 10 5 1997 As Su ia bSa ha ra n Af ric a So ut h C en La tra tin lA Am si a er ic a an M d id C dl ar e ib Ea . st an d N .A fri ca an d Eu ro pe Ea st As ia an d Pa ci fic 0 1980 FIGURE 7.4 Growth in World Bank Loans: World Bank and IMF Lending Expands in the Regions Most at Risk of Financial Crisis SOURCE: Used by permission of the Copyright Clearance Center for the World Bank. 244 THE SOCIOLOGY OF SUSTAINABLE DEVELOPMENT 245 environment are often the losers since less funds go to social and environmental agencies and services. Debt, resource exploitation, and cutbacks in public services have been the pattern in a number of cases, such as Ecuador. Like many other Latin American nations, Ecuador is severely indebted. The country’s political-economic history is similar to that of other LDCs that followed the traditional development trajectory. Ecuador borrowed large amounts of money in the 1970s, which led to a crisis in the early 1980s, because the country was unable to meet debt payments. In 1970, Ecuador’s total foreign debt was US$242 million; by 1982 debt had increased to US$12.5 billion, more than a fifty-fold increase. Debt problems reached their height in 1979 when debt payments demanded 45 percent of export earnings. In the late 1980s and early 1990s, Ecuador renegotiated loans with the International Monetary Fund in exchange for agreeing to make “structural adjustments.” These included steps to liberalize their economy, increase exports, and red...
View Full Document

This note was uploaded on 10/25/2010 for the course SOSCI INBA6610 taught by Professor Prescott during the Fall '08 term at University of the West Indies at St. Augustine.

Ask a homework question - tutors are online