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Pre-Game Show (Terms worth knowing)

Pre-Game Show (Terms worth knowing). GDP: Gross Domestic Product HDI: Human Development Index ISI: Import-Substituting Industrialization FDI: Foreign Direct Investment Gini: Corrado Gini (Italy 1912). Sovereign Debt and the Erosion of Sovereignty.

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Pre-Game Show (Terms worth knowing)

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  1. Pre-Game Show(Terms worth knowing) GDP: Gross Domestic Product HDI: Human Development Index ISI: Import-Substituting Industrialization FDI: Foreign Direct Investment Gini: Corrado Gini (Italy 1912)

  2. Sovereign Debt and the Erosion of Sovereignty James Hayes-Bohanan, Ph.D.Professor of Geography & Latin American StudiesBridgewater State University J2000: GETTING INTO DEBT

  3. What is it for? Credit

  4. Big Projects Aswan High Dam: World Bank’s Kick-off Event

  5. Petrodollars Literally: Too much of a good thing!

  6. Overlending

  7. Commodity Earnings over Time Raúl Prebisch, ECLA

  8. Mexico Moratorium August 1982 ¡Basta! Brazil followed Slow growth – the lost decade Inflation and hyperinflation Capital flight Contagion effect

  9. Loans to cover interest payments were made with conditions: Privatization of state enterprises End to subsidies Opening the economies to foreign investment 12 of 15 large debtors complied Soon comprised 20 percent of all World Bank (WB) debt Baker Plan - 1985Treasury Secretary James Baker www.ThirdWorldTraveler.com

  10. Sought to attract investment by reforming economies Encouraged cooperating private banks to reduce their claims against LDCs Used new IMF (International Monetary Fund)/WB funding to collateralize debts in the form of new bonds - in other words, multilateralized the debt Brady Plan - 1989Treasury Secretary Nicholas Brady www.darbyoverseas.com

  11. Reduced claims Writing down debt Dimes or pennies on dollars Secondary Markets

  12. Debt-Equity Swaps

  13. Debt-for-Nature Swaps

  14. Baker and Brady Plans Liberalization Devalue currency Open markets Reduce government intervention Privatize assets Whirled Bank: A World Full of Poverrty

  15. A Consensus?

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