April 2 - Rise of Neoliberalism ISI banned in the 80s 1 Contributing Factors a Debt Crisis i Causes of debt crisis Latin American countries began

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Rise of Neoliberalism - ISI banned in the 80s 1. Contributing Factors a. Debt Crisis i. Causes of debt crisis-  Latin American countries began to  borrow heavily on international markets because their  economic forecasts looked pretty good. They were able to  borrow because international banks were flushed with  “Petro-Dollars” – OPEC cartel nations stopped production to  increase oil prices, and there were shortages in the West.  OPEC nations were becoming extremely wealthy and  deposited all the profit into international banks, which began  to loan money to Latin America and Africa and other areas of  the world. Most of the debt was contracted through private  commercial banks (many in the US), and we saw a lot of  debt in the LA in the 1970s (increasing about ten-fold). Latin  American countries were unable to pay back their debts.  Corruption in Latin American governments- politicians  pocketed money instead of repaying loans.  Mismanagement- money spent on social programs and  public works instead of paying their debts. International  economic causes: in general, prices for raw materials 
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This note was uploaded on 04/08/2008 for the course POLI 460 taught by Professor Love during the Spring '08 term at Tulane.

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April 2 - Rise of Neoliberalism ISI banned in the 80s 1 Contributing Factors a Debt Crisis i Causes of debt crisis Latin American countries began

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