ANT204H1 Lecture 9: ANT112509
Document Summary
Mexico"s use of default for personal reasons but the realization came that there was a huge problem with third world debt system to respond structural adjustment: we can extend or renegotiate your loan so long as you adopt these measures. Goal of saps is to generate more foreign currency so they can honour their debts: reduce government spending on social programs. Increase production of export commodities more foreign currency to handle the debt; reduce food production to produce export crops to gain foreign currency to pay off debt: weaken or destroy unions: encourage foreign investment in your country. Net result: guarantee that the flow of capital/wealth around the world since the 80s: net flow from south to north every single year. A lot of the 11-or-so trillion dollars are actually made up of packages of loans. Some of what i own is some of the foreign debt of foreign countries my mutual fund is based on these debts remaining live.
