3rd world debt crisis Flashcards
Between 1970 and 2002 the debts of the world’s poorest countries grew from $… billion to $… billion
25 to 523
… million people in sub Saharan Africa had died due to the … the policies have lead to
5 and debt
… causes of the crisis
4
cause 1 irresponsible….
lending and borrowing
Cause 2 poor …
policy and politics
Cause 3 … weakness : the long term tendency towards …
structural deficit
Cause 4: the … crisis: … deficit, ….. slump, interest rate ….
oil, trade, global, rise
Cause 1: Many … …. found with a lot of … ….
private banks petro dollars
Petro dollars are: a national unit of … earned from the … of p……
currency, export, petroleum
Cause 2: Money was often wasted through …
Dictators
failed and wasteful … projects
development
3 reasons for the waste of money:
Corruption
Oppression
Bureaucracy
Cause 3: Specialising in low value primary …
production
Imports …. manufactured goods and export cheap primary …
expensive, commodities
Leads to a … trade …
structural, deficit
Cause 4’s impacts (1): … deficit …
trade, increases
So demand for oil is …
inelastic
Impact 2: Demand for exports …
fell
In a fixed system you cannot … your…
devalue, currency
Raising … … to attract ‘… …’ may cause domestic … and recession, … and capital …
interest, rates, hot, money, inflation, speculation, flight
Impact 3: Interest rates … in …
rise, west
3rd world facing higher …
debt
Meanwhile the 3rd world cannot generate … earnings
export
developing countries tried to … exports of … … at the same time - resulting in decreasing … for all
expand, primary, commodities, prices
