The Politics of Global Debt

217 Pages·1993·25.678 MB·English

by  Stephen P. Riley (eds.)

INTERNATIONAL POLITICAL ECONOMY SERIES
General Editor: Timothy M. Shaw, Professor of Political Science and International
Development Studies and Director of the Centre for Foreign Policy Studies,
Dalhousie University, Nova Scotia, Canada
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THE POLITICAL ECONOMY OF FOREIGN POLICY IN SOUTHEAST ASIA
The Politics of
Global Debt
Edited by
Stephen P. Riley
Senior Lecturer in Politics
Staffordshire University
I50th YEAR
M
St. Martin's Press
Selection, editorial matter, Chapters I, 6 and I 0
© Stephen P. Riley 1993
Chapter 2 © Pergamon Press Ltd 1992
Chapters 3-5, 7-9 ©The Macmillan Press Ltd 1993
Softcover reprint of the hardcover 1st edition 1993
All rights reserved. No reproduction, copy or transmission of
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Any person who does any unauthorised act in relation to this
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First published in Great Britain 1993 by
THE MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 2XS
and London
Companies and representatives
throughout the world
A catalogue record for this book is available
from the British Library.
ISBN 978-1-349-22822-5 ISBN 978-1-349-22820-1 (eBook)
DOI 10.1007/978-1-349-22820-1
First published in the United States of America 1993 by
Scholarly and Reference Division,
ST. MARTIN'S PRESS, INC.,
175 Fifth Avenue,
New York, N.Y. 10010
ISBN 978-0-312-09636-6
Library of Congress Cataloging-in-Publication Data
The Politics of global debt I edited by Stephen P. Riley.
p. em. -{International political economy series)
Includes bibliographical references (p. ) and index.
ISBN 978-0-312-09636-6
I. Debts, External. 2. International economic relations.
3. Economic history-1971-1990. 4. Economic history-1990-
1. Riley, Stephen P., 1949- . II. Series.
HJ80 II.P65 1993
336.3'435--dc20 93-14
CIP
Contents
List of Tables vii
List of Acronyms and a Note on Numbers ix
Preface xi
Notes on the Contributors xiii
1 Introduction: The Politics of Debt Crises 1
Stephen P. Riley
Part I Theories and Concepts
2 Discipline and Punish: The New Right and the Policing
of the International Debt Crisis 25
Stuart Corbridge
3 Debt and Imperialism: Perspectives on the Debt Crisis 51
Malcolm J. Grieve
4 Dictatorship, Democracies and the Debt Crisis 69
Arvind K. Jain
Part II Case-Studies
5 The Latin American Debt Crisis 85
Phil 0' Brien
6 Debt, Democracy and the Environment in Africa 113
Stephen P. Riley
7 American Agriculture and the Debt Crisis 136
David Freshwater
8 The Political Consequences of External Debt in Eastern
Europe 151
George A. Potts
v
vi Contents
9 External Debt, Economic Success and Economic Failure:
State Autonomy, Africa, and the NICs 168
Roger Charlton
10 Conclusions 189
Stephen P. Riley
Bibliographical Note 197
Index 202
List of Tables
1.1 Prospects for the 1990s 3
1.2 Dimension of the LDC debt crisis, 1970-1989 5
1.3 Debt restructuring agreements with official creditors,
January 1982 to September 1989 14
1.4 Debt restructuring agreements with official creditors,
January 1989 to September 1990 15
4.1 Estimates of capital flight, 197fr1982 72
5.1 External debt comparisons, 1983-1984 89
5.2 Debts of major Latin American debtors owed to banks,
June 1983 90
5.3 US banks' capital ratios, 1982 91
5.4 Latin America and East Asia: savings and exports,
1965 and 1983 92
5.5 Latin America's trade balance, 1980 to 1985 95
5.6 The slowdown in bank lending to Latin America,
1980 to 1985 95
5.7 Net transfer of resources from Latin America 96
5.8 The fifteen major debtors, 1985 104
5.9 The major Latin American debtors, 1990 111
6.1 Scheduled and actual debt service payments of
Sub-Saharan Africa, 1989 115
6.2 Sub-Saharan Africa: 1987 debt outstanding by country 118
6.3 Debt forgiveness by creditor governments, 1980-1988 123
6.4 Africa: human rights record by degree of political
contestation, 1985-1986 125
6.5 Some debt-for-nature swaps since 1987 131
8.1 Debt in Communist Europe, 1982-1988 157
8.2 (i) Eastern Europe and the Soviet Union: ratio of net
debt to exports to the market economies 158
(ii) Eastern Europe and the Soviet Union: ratio of net
interest payments to exports to the market
economies, 1982-1988 159
8.3 Eastern Europe and the USSR: debt and debt
indicators in 1989 165
9.1 South Korea: external debt and debt service, 1963-1984 170
9.2 Republic of Korea: external debt, 1980-1989 171
vii
viii List of Tables
9.3 South Korea: basic macro indicators, 1962-1984 172
9.4 Debt and debt-service ratios in Korea, Mexico, Brazil,
and Argentina, 1970-1985 173
10.1 The severely indebted middle income countries, 1990 191
List of Acronyms and a
Note on Numbers
BAM Brazil, Argentina and Mexico
COCOM Consultation Group Co-ordination Committee
CMEA Council for Mutual Economic Assistance
EC European Community
ECLAC Economic Commission for Latin America and the
Caribbean
EOI Export Orientated Industrialisation
DRS The IMF's Debt Reporting System
FCS Farm Credit System
FDI Foreign Direct Investment
FSU The former Soviet Union
GDP Gross Domestic Product
GDR German Democratic Republic (the former East
Germany)
GNP Gross National Product
HICs Highly Indebted Countries - in the 'middle income'
range of the world's states.
IBRD International Bank for Reconstruction and Development
(part of the World Bank group)
IDB Inter-American Development Bank
IFis International Financial Institutions (notably the IMF
and the World Bank)
IMF International Monetary Fund
lSI Import Substitution Industrialisation
LDCs Less Developed Countries
MYRAs Multi-Year Rescheduling Agreements
NATO North Atlantic Treaty Organisation
NICs Newly Industrialising (or Industrialised) Countries
NIMBY Not in my backyard
NIMTO Not in my term of office
NGOs Non-Governmental Organisations
ODA Official Development Assistance
OECD Organisation for Economic Co-operation and
Development
OPEC Organisation of Petroleum Exporting Countries
PIK Payment in kind
PRI Mexico's ruling party, the Institutionalised Party of the
Revolution
SSA Sub-Saharan Africa
TNCs Trans-National Corporations
ix