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- W2405250287 abstract "Following severe balance-of-payments deficits caused by oil price increases and declining terms of trade, nearly all the countries of Central America incurred large foreign debts by the late 1970s. As a second round of price increases and restrictive credit policies drove the world economy into recession in 1979 and 1980, Central America's repayment obligations reached unmanageable proportions. With a near stagnation in world trade between 1980 and 1982, prices for primary product exports from Central America dropped to their lowest level since the 1930s. Meanwhile, rising interest rates in the developed nations nearly doubled the region's debt service burden, most of which had been financed with variable interest loans. Beginning with Costa Rica in 1981, the nations of the region turned to the International Monetary Fund (IMF) for emergency credit to meet their debt obligations. Agreements reached with the IMF initiated an often painful process of economic restructuring for the nations of Central America. The IMF was originally established in the 1940s to finance short-term balance-of-payments deficits and prevent the type of breakdown in international trade witnessed during the Great Depression. By the late 1970s, however, the fund had assumed a new role, that of financing balance-ofpayments deficits occasioned by a long-term and presumably irreversible deterioration in Third World terms of trade. Under such intervention, IMF stabilization credits became the initial step in long-term structural adjustment programs intended to encourage economic growth through export diversification.' While considerable research has addressed the effect of structural adjustment programs on aggregate economic measures in Latin America 2 with few exceptions3" @default.
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- W2405250287 date "1992-01-01" @default.
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- W2405250287 title "Structural Adjustment and Rural Development: Inferences from a Belizean Village" @default.
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